5
EPP 1 : NATIONAL SEAWEED NUCLEUS AGRICULTURE SECTOR KEY OUTCOMES OF THE EPP/ KPIs Increase production of raw seaweed material from 207,850 mt (2010) to 94,050,000 mt by 2020 (wet weight) (total culturing areas : 18,000 ha). Increase GNI from RM23,330 (2012) to RM419,944 by 2020. Generate 13,788 job opportunity (Farm and factory workers, management and supporting staff). Create BO (downstream and upstream processing). Increase livelihood of local community (poverty eradication) Produce and develop high quality seaweed brand. WHAT NEEDS TO BE DONE? Increase training capacity to produce sufficient man power labour skilled. Setup basic infrastructure. Produce and branding high quality local dry seaweed for higher or standard global and local market price. Introduce Good Aquaculture Practices. KEY CHALLENGES Lack of man power labour skilled (require 520 workers/1000ha) Sustainable supply of high quality seedling (seedling with high carrageen content). Fluctuations of seaweed global and local market price. Meet international quality requirement (EU standard). MITIGATION PLAN Provide basic infrastructure and culturing areas to attract investor and to skill labour. To increase training capacity and capability On-going RND for the improvement of local seaweed species and venture in new seaweed varieties. Control price of seaweed by government and produce local high quality seaweed brand. EPP 2 : SABAH AGRO INDUSTRIAL PRECINT (SAIP) SAIP is a technology precinct that serves as an enabler/platform for the development of agro-based industry focusing on food and specialty crops/natural products, and driven by technological processing innovation and R&D. 215 acres of land area in Kimanis, Papar. Development on Phase 2 (2012-13): the Post Harvest Handling & Collection Centre (PHHCC – Product Line Facility & Cold Room) & Controlled Environment Farming (CEF) Project, a JV with BIA and SLDB would plant Chili, Tomato and Rock Melon (10 acres). These fresh produce would be processed and delivered to consumer (via PHHCC, capacity 50 tonne/year), stored in cold storage or further processed into value added products (PHHCC-PLF). Apart from JV BIA/SLDB, foreign investors Dar Seng Agriculture Co. Ltd. Taiwan (high-tech planting) and MES Co. Korea (packaging/green tech) are serious to invest (setting up plant) in SAIP. Pop Grapes Enzymes Sdn Bhd and other local companies interested to participate in the PLF producing value added products (medicinal enzymes, etc.). Phase 3 (2014-15) would see further expansion of CEF & PHHCC and development of Agro Research & Engineering Facility (for training and R&D activities). Currently, SAIP housed the Demo Plot herbal nurseries (UNDP fund) and MOSTI Technofund’s Tea tree plantation (10 ha), nurseries, essential oil distillation plant (on-going) and Tissue culture/Product Development laboratories. Approved SDC RMK10-RP1 project without ceiling. Phase 1 of the earthwork and Admin Building Completed under RMK9. Design for Phase 2 completed pending availability of funds. DESCRIPTION Kawasan ZIA Rumpai Laut, Moluska & Sangkar Ikan (33,183 ha) Pusat-Pusat Akuakultur 1. Pusat ternakan ikan dalam sangkar & hatceri (100 ekar) 2. Pusat konservasi & penyelidikan biodiversiti perikanan (pulau-pulau) 20 ekar 3. Pusat penyelidikan pembenihan perikanan (1000 ekar) 4. Pusat konservasi & penyelidikan biodiversiti perikanan (terumbu karang) 631 ha (1560 ekar) Perairan Bakapit (14,568 ha) Perairan Silam (18,615 ha) District boundary Corals Pelan Zon Industri Akuakultur (ZIA) Daerah Lahad Datu Kawasan Rumpai Laut : 45, 555 Ha (112,568 ekar) Laut Utara Pulau Bum Bum (1) Laut Utara Tanjung Pantau Pantau (2) Beaufort Reef (3) Creach Reef (4) Cust Reef (5) Tubing Reef (6) Tubing Reef (6a) Pesalat Reef (7) Laut Timur Pulau Bait Reef (8) Utara Pulau Bait (9) Pulau Pababag (10) Pulau Mata Pahi Reef (11) Pulau Dannawan & Ligitan Reef (12) Pulau Silungan (13) Tanjung Sirongol (14) Pulau Timbun Mata (15) Corals Pelan Zon Industri Akuakultur (ZIA) Daerah Semporna Proposed Seaweed Area Pelan Zon Industri Akuakultur (ZIA) Daerah Tawau Conventional Seaweed farming • Seaweed farming carried out by family members (small scale) • Culturing seaweed using long line and raffia string • Very low drying seaweed capacity • Dried seaweed trade through middleman (low selling price) • Attract new investors and upgrade existing seaweed companies to commercial scale • Group existing and new local seaweed farmers and provide training under the investing company (train the trainer method) • Up scaling small farmer to commercial scale and replicating to identified site • Provide infrastructure (Drying platform, storage…) to increase drying capacity and quality • Apply new and improve technology using Eco-friendly Long Line Technology (EFLT) which increase quality and production • Setup seaweed collection centre in each district to monitor seaweed quality and control market price National Seaweed Nucleus National Seaweed Nucleus versus Conventional Method VS Kimanis, Papar Pulau Bohayan (1,100 ha) Pualu Tabawan (1,075 ha) Perairan Madai (2,000 ha) Perairan Pangi (1,210 ha) Corals Kawasan Rumpai Laut (3,200 ha) Kawasan Moluska / Sangkar Ikan (2,175 ha) Pelan Zon Industri Akuakultur (ZIA) Daerah Kunak Key OUTCOMES OF THE EPP/ KPIs WHAT NEEDS TO BE DONE? 100 Agro/Technopreneur – Office space , business advisory & production line facility provided to the agro/technopreneur 2,085 Jobs to be created – Private domestic/foreign investment Encourage production of high quality agro-based product & services – Post harvest handling & collection center to process & add value Capacity building and knowledge improvement for the locals in modern agriculture technology and skills Phase 2 Agro Industry Development Centre 1 (Building & Equipment) – RM20 million Phase 3 Agro Industry Development Centre 2 (Building & Equipment) – RM74 million Development in phases. Based on demand and supply. KEY CHALLENGES MITIGATION PLAN Physical infrastructure (buildings) Human capital/resource (Limited local talent) Funding for basic infrastructure, building, initial operation cost , common facilities and equipment for post harvest and production line. Integrate education into SAIP. DESCRIPTION The proposed National Seaweed Nucleus is a Private driven project which main objective is to develop seaweed farms and enhancing seaweed value chain, creating BO (Aqua-tourism, downstream & Upstream seaweed industry. The Department of Fisheries Sabah has identified four areas in the East Coast of Sabah which has high potential to be developed as commercial scale seaweed farming areas (I.e Lahad Datu, Semporna, Kunak and Tawau.) The key outcome of the project area: • Produce Malaysian Seaweed Standard (Piawai Rumpai Laut Malaysia) from 207,850 mt (2010) to 94,050,000 mt by 2020 (wet weight) • Improve yield from 2.6 m.t/ha to 5.5/m.t/ha by 2020. (dried) • Increase local people income RM6,570,000 by 2020. • Increase GNI from RM23,330 (2012) to RM419,954,000 by 2020 • Create Business Opportunity (downstream and upstream processing) • Aqua tourism • Job opportunity (Farm & factory workers, Management & supporting staff). • Poverty eradication.

EPP 1 : NATIONAL SEAWEED NUCLEUS · Product Line Facility & Cold Room) & Controlled Environment Farming (CEF) Project, a JV with BIA and SLDB would plant Chili, Tomato and Rock Melon

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Page 1: EPP 1 : NATIONAL SEAWEED NUCLEUS · Product Line Facility & Cold Room) & Controlled Environment Farming (CEF) Project, a JV with BIA and SLDB would plant Chili, Tomato and Rock Melon

EPP 1 : NATIONAL SEAWEED NUCLEUS

AGRICULTURE SECTOR

KEY OUTCOMES OF THE EPP/ KPIs• Increaseproductionofrawseaweedmaterialfrom

207,850mt(2010)to94,050,000mtby2020(wetweight)(totalculturingareas:18,000ha).

• IncreaseGNIfromRM23,330(2012)toRM419,944by2020.

• Generate13,788jobopportunity(Farmandfactoryworkers,managementandsupportingstaff).

• CreateBO(downstreamandupstreamprocessing).• Increaselivelihoodoflocalcommunity(poverty

eradication)• Produceanddevelophighqualityseaweedbrand.

WHAT NEEDS TO BE DONE?• Increasetrainingcapacitytoproducesufficientman

powerlabourskilled.• Setupbasicinfrastructure.• Produceandbrandinghighqualitylocaldryseaweed

forhigherorstandardglobalandlocalmarketprice.• IntroduceGoodAquaculturePractices.

KEY CHALLENGES• Lackofmanpowerlabourskilled(require520

workers/1000ha)• Sustainablesupplyofhighqualityseedling(seedling

withhighcarrageencontent).• Fluctuationsofseaweedglobalandlocalmarket

price.• Meetinternationalqualityrequirement(EU

standard).

MITIGATION PLAN• Providebasicinfrastructureandculturingareasto

attractinvestorandtoskilllabour.• Toincreasetrainingcapacityandcapability• On-goingRNDfortheimprovementoflocalseaweed

speciesandventureinnewseaweedvarieties.• Controlpriceofseaweedbygovernmentand

producelocalhighqualityseaweedbrand.

EPP 2 : SABAH AGRO INDUSTRIAL PRECINT (SAIP)

SAIPisatechnologyprecinctthatservesasanenabler/platformforthedevelopmentofagro-basedindustryfocusingonfoodandspecialtycrops/naturalproducts,anddrivenbytechnologicalprocessinginnovationandR&D.215acresoflandareainKimanis,Papar.

DevelopmentonPhase2(2012-13):thePostHarvestHandling&CollectionCentre(PHHCC–ProductLineFacility&ColdRoom)&ControlledEnvironmentFarming(CEF)Project,aJVwithBIAandSLDBwouldplantChili,TomatoandRockMelon(10acres).Thesefreshproducewouldbeprocessedanddeliveredtoconsumer(viaPHHCC,capacity50tonne/year),storedincoldstorageorfurtherprocessedintovalueaddedproducts(PHHCC-PLF).

ApartfromJVBIA/SLDB,foreigninvestorsDarSengAgricultureCo.Ltd.Taiwan(high-techplanting)andMESCo.Korea(packaging/green

tech)areserioustoinvest(settingupplant)inSAIP.PopGrapesEnzymesSdnBhdandotherlocalcompaniesinterestedtoparticipateinthePLFproducingvalueaddedproducts(medicinalenzymes,etc.).

Phase3(2014-15)wouldseefurtherexpansionofCEF&PHHCCanddevelopmentofAgroResearch&EngineeringFacility(fortrainingandR&Dactivities).

Currently,SAIPhousedtheDemoPlotherbalnurseries(UNDPfund)andMOSTITechnofund’sTeatreeplantation(10ha),nurseries,essentialoildistillationplant(on-going)andTissueculture/ProductDevelopmentlaboratories.

ApprovedSDCRMK10-RP1projectwithoutceiling.Phase1oftheearthworkandAdminBuildingCompletedunderRMK9.DesignforPhase2completedpendingavailabilityoffunds.

DESCRIPTION

KawasanZIARumpaiLaut,Moluska&SangkarIkan(33,183ha)

Pusat-PusatAkuakultur

1.Pusatternakanikandalamsangkar&hatceri(100ekar)

2.Pusatkonservasi&penyelidikanbiodiversitiperikanan(pulau-pulau)20ekar

3.Pusatpenyelidikanpembenihanperikanan(1000ekar)

4.Pusatkonservasi&penyelidikanbiodiversitiperikanan(terumbukarang)631ha(1560ekar)

PerairanBakapit(14,568ha)PerairanSilam(18,615ha)DistrictboundaryCorals

Pelan Zon Industri Akuakultur (ZIA) Daerah Lahad Datu

KawasanRumpaiLaut:45,555Ha(112,568ekar)

LautUtaraPulauBumBum(1)LautUtaraTanjungPantauPantau(2)BeaufortReef(3)CreachReef(4)CustReef(5)TubingReef(6)TubingReef(6a)PesalatReef(7)LautTimurPulauBaitReef(8)UtaraPulauBait(9)PulauPababag(10)PulauMataPahiReef(11)PulauDannawan&LigitanReef(12)PulauSilungan(13)TanjungSirongol(14)PulauTimbunMata(15)Corals

Pelan Zon Industri Akuakultur (ZIA) Daerah Semporna

ProposedSeaweedArea

Pelan Zon Industri Akuakultur (ZIA) Daerah Tawau

Conventional Seaweed farming• Seaweedfarmingcarriedoutbyfamilymembers(smallscale)• Culturingseaweedusinglonglineandraffiastring• Verylowdryingseaweedcapacity• Driedseaweedtradethroughmiddleman(lowsellingprice)

• Attractnewinvestorsandupgradeexistingseaweedcompaniestocommercialscale

• Groupexistingandnewlocalseaweedfarmersandprovidetrainingundertheinvestingcompany(trainthetrainermethod)

• Upscalingsmallfarmertocommercialscaleandreplicatingtoidentifiedsite

• Provideinfrastructure(Dryingplatform,storage…)toincreasedryingcapacityandquality

• ApplynewandimprovetechnologyusingEco-friendlyLongLineTechnology(EFLT)whichincreasequalityandproduction

• Setupseaweedcollectioncentreineachdistricttomonitorseaweedqualityandcontrolmarketprice

National Seaweed Nucleus

National Seaweed Nucleus versus Conventional Method

VS

Kimanis, Papar

PulauBohayan(1,100ha)

PualuTabawan(1,075ha)

PerairanMadai(2,000ha)

PerairanPangi(1,210ha)

Corals

KawasanRumpaiLaut(3,200ha)

KawasanMoluska/SangkarIkan(2,175ha)

Pelan Zon Industri Akuakultur (ZIA) Daerah Kunak

Key OUTCOMES OF THE EPP/ KPIs WHAT NEEDS TO BE DONE?• 100Agro/Technopreneur

–Officespace,businessadvisory&productionlinefacilityprovidedtotheagro/technopreneur

• 2,085Jobstobecreated–Privatedomestic/foreigninvestment

• Encourageproductionofhighqualityagro-basedproduct&services–Postharvesthandling&collectioncenterto

process&addvalue• Capacitybuildingandknowledgeimprovementfor

thelocalsinmodernagriculturetechnologyandskills

• Phase2AgroIndustryDevelopmentCentre1(Building&Equipment)–RM20million

• Phase3AgroIndustryDevelopmentCentre2(Building&Equipment)–RM74million

• Developmentinphases.Basedondemandandsupply.

KEY CHALLENGES MITIGATION PLAN• Physicalinfrastructure(buildings)• Humancapital/resource(Limitedlocaltalent)

• Fundingforbasicinfrastructure,building,initialoperationcost,commonfacilitiesandequipmentforpostharvestandproductionline.

• IntegrateeducationintoSAIP.

DESCRIPTION

TheproposedNationalSeaweedNucleusisaPrivatedrivenprojectwhichmainobjectiveistodevelopseaweedfarmsandenhancingseaweedvaluechain,creatingBO(Aqua-tourism,downstream&Upstreamseaweedindustry.

TheDepartmentofFisheriesSabahhasidentifiedfourareasintheEastCoastofSabahwhichhashighpotentialtobedevelopedascommercialscaleseaweedfarmingareas(I.eLahadDatu,Semporna,KunakandTawau.)

Thekeyoutcomeoftheprojectarea:•ProduceMalaysianSeaweedStandard(PiawaiRumpaiLaut

Malaysia)from207,850mt(2010)to94,050,000mtby2020(wetweight)

•Improveyieldfrom2.6m.t/hato5.5/m.t/haby2020.(dried)•IncreaselocalpeopleincomeRM6,570,000by2020.•IncreaseGNIfromRM23,330(2012)toRM419,954,000by2020

•CreateBusinessOpportunity(downstreamandupstreamprocessing)

•Aquatourism•Jobopportunity(Farm&factoryworkers,Management&

supportingstaff).•Povertyeradication.

Page 2: EPP 1 : NATIONAL SEAWEED NUCLEUS · Product Line Facility & Cold Room) & Controlled Environment Farming (CEF) Project, a JV with BIA and SLDB would plant Chili, Tomato and Rock Melon

EPP 3 : TAMAN KEKAL PENGELUARAN MAKANAN (TKPM)

EPP 4 : INTEGRATED MARINE FISH CULTURE

Background Of The Project TKPM Sg. Koyah• Thesiteissituated52kmfromthe

KinabatanganDistrict,LahadDatutown• Overallarea=80hectares• Acreagedeveloped=80hectares• GazettedforTKPM=year2004;GN47-2004• In2009listedundertheSabahDevelopment

Corridors(SDC).• Currentstatus-ThefinalreportonDesignPlan

(PreliminiaryReport)donebySARGKonsultS/BcostingRM308,600.00>SDC

CurrentMarineCageActivities

IdentifiedMarineCageActivities

PULAU LABUAN

SIPITANG

TENOM

BEAUFORT

PUTATAN

KUALA PENYU

KENINGAUTONGOD

PENSIANGAN

TAWAU

KUNAK

SEMPORNA

LAHAD DATU

KINABATANGAN

SANDAKAN

LABUK SUGUTRANAU

TAMBUNANPAPAR

PENAMPANG

TUARANKOTAKINABALU

KOTA MARUDU

PITAS

KOTA BELUD

Key OUTCOMES OF THE EPP/ KPIs WHAT NEEDS TO BE DONE?• IncreaseFreshFruitExport:A)Papaya-63,855mt[355ha]@7yearsB)Jackfruit-12,237.5mt[725ha]@5years• Futureopportunityforpineapple,starfruitand

banana• Jobopportunity:3,184people[until2020]• ToDevelopnewlocalagropreneur:66• GenerateRevenuefortheStateGovernment

throughlandrental-RM3,538,000.00until2020

• Needfundingforbasicinfrastructure(road,watersupplyandelectricity)needtobeconstrucedinorderfortheTKPMtobeimplement.

• Theanchorcompanyshouldbeabletoexportthefarmproducedirectlytotheimportingcountry/clientthroughSabahPort[Sandakan]–toshortenthetravellingtimeratherthanthroughPortKlang.

KEY CHALLENGES MITIGATION PLAN• Illegalsquatters• Nobasicinfrastructure

• DistrictOfficercouldissueEvictionNoticetotheillegalsquatterwiththeassistancefromtheLand&SurveyDepartment,Police,DistrictSurveyorandDistrictCouncil[EnforcementOfficer]

• ToconstructaccessroadfromSandakan-LahadDatuHighwaytotheTKPMsite.

• Toprovidewatersupplyandreservoir[pond]forwatercollection.

• Toprovidepowerconnection[SESB]andstandbygenerator.

These are The Current and Identified Areas for Marine Fish Cage Activities

•CategorizedunderEPP7[Fruit&Vegetable]•Toalienatelandpermenantlyfortropicalfruitsproduction.•Togiveopportunityforprivatesectortobeinvolvedinfruits

production•Togiveopportunityforlocalagropreneurtobeinvolvedinfood

cropsproduction.•AnchorVendorConcept.•StrengthsoftheFoodcropssector:

-Foodsecurity-BOT,Importvegetable&fruitshigherthanexport-Foodcrisis-GeographicallocationofSabahclosertoTaiwan,Japan,Brunei(EAGA)andKorea-Sabahstilllackinginfoodcropsagropreneur-Highdemandoftropicalfruitsoverseas

•Production:Lowvegetable&fruitsexported,(1,487mt/RM3.8million(statistic2008)

•Distribution:ProjectfocustoeastcoastSabah(Div.SandakanandTawau),tosoftenedtheeffectofvastexpansionofPalmoilplantation(estimatedacreageofpalmoilplantationisover93%cultivatedonarable,suitableandfertileagriland(Agristatisticsbulletin2007.

DESCRIPTION

Background Of The Project TKPM Mandalipau, Papar.• Thesiteissituated25kmfromPaparTown.• Overallarea=517hectares• Acreagedeveloped=517hectares(3Phase)• GazettedforTKPM=year2006;GN78-2006• In2009listedundertheSabahDevelopment

Corridors(SDC).• Currentstatus-ThefinalreportonDesign

Plan(PreliminiaryReport)donebySABAPerundingS/BcostingRM860,580.00>SDC

TKPM MANDALIP AU (517 HA)

PapayaJackfruit

Pineapple

Starfruit

Banana

Background Of The Project TKPM Sg. Lokan• Thesiteissituated80kmfromthe

KinabatanganDistrict,SandakanCity.• Overallarea=732.48hectares• 1stPhaseDevelop=400hectares• 2nd.PhaseDevelop=300hectares• GazettedforTKPM=year2005;GN345-2005• In2009listedundertheSabahDevelopment

Corridors(SDC).• CurrentStatus-ThefinalreportonDesign

Plan(PreliminiaryReport)donebyPYKonsepPerundingcostingRM389,120.00>SDC

TKPM SG. LOKAN (700 HA)

TKPM SG. KOYAH (80 HA)

Type of Crops

Broodstock Holding Cage Limau Limauan, Marudu Bay Marine Fish Hatchery

Irrigation ChannelPond

TKPM, Sg. Lokan, Plot Design

5-HA. Plots (10 NOS.)

5-HA. Plots (10 NOS.)

1-HA. Plots (20 NOS.)

1-HA. Plots (18 NOS.)

1-HA. Plots (8 NOS.)

50m x 50m Sub-station

100m x 50m Sub-station

1000m x 50m Collection On

Centre

DESCRIPTION

TheproposedKudatIntegratedMarineFishCulturewillbelocatedatLimauLimauan,Kudat.

Atotal400haoflandandseaareahasbeenidentifiedandappliedforin2011.

Theproposedprojectconsistofahatchery,nurseries,cagesforgrowout,processingplantandlivefeedproduction.

TheestimatedinitialprojectinvestmentwillbeRM52millionandRM2millionofthetotalcomefromgovernmentinjection.

Thehatcheryisexpectedtoproduce91millionofhybridandhighgradefishfingerlingstovariousfishcagecultureoperatorsinSabah.

Thecagesisexpectedtoproduce8,400mtannuallyofhybridandhighgradehighmarketpriceofmarinefishforexporttoChina,HongKongandTaiwan.

TheprojectisalsotoprovideR&Dfacilitiestointerestedpartiestoenhanceproductionofhighqualitymarinefishseeds.

Theproposedmarinefishtobeculturedare:Ephinepheluslanceolatus,E.fuscoguttatus,E.polyphekadion,Plectropomusleopardus,P.maculatus,etc.

KEY OUTCOMES OF THE EPP/ KPIs• 1,398ormorejobsopportunities.• 504millionhybridandhighgradefishfingerlings.• 47,040mtofhybridandhighgrade,highmarket

priceofmarinefishforexportannuallytoChina,HongKongandTaiwan.

WHAT NEEDS TO BE DONE?• Fullgovernmentsupportbyprovidinglandand

accessroadtolocation

KEY CHALLENGES• Insufficientsupplyoffingerlings• Intrusionoflocalfolks• Supplyofelectricity• Accessroad• Supplyoftreatedwater• Skilledtechnicianandworkers• Parasiteanddiseaseoccurrence• Waterpollution• Qualitycontrol

MITIGATION PLAN• Developahatcherywith500millfingerlings

capacity.• Securitysystemtobeinplaced• Provisionofwater,electricityandaccessroad• Provisionofspecifictraining

AGRICULTURE SECTOR

Page 3: EPP 1 : NATIONAL SEAWEED NUCLEUS · Product Line Facility & Cold Room) & Controlled Environment Farming (CEF) Project, a JV with BIA and SLDB would plant Chili, Tomato and Rock Melon

EPP 5 : SWIFTLET COMMERCIAL CENTRE (SCC)

EPP 6 : HIGH FINNED GROUPER & BARRAMUNDIDESCRIPTION

Fish Cage Cluster – High Finner Grouper• 100clustersintotal• KimanisBay

Liner (water proof) Pond - Barramundi• 200pondsof1acreseach• Geomembranewith15yearslifespan• KgSitompokinKualaPenyu• Nopollutiontoundergroundwater

Hatchery & Nursery• 5acresofland• KgBinsuluk

Key Performance Index:• 67,000tonnesannualoutputby2020• GNIofRM994.5millionby2020

SABAH  SWIFLET  CENTRE  (SCC)

lahad datu

KUDAT PITAS

KOTA BELUDKOTA MARUDU

TAWAU

High Finned Grouper• Verysoughtafterspeciesbyoverseasconsumer• CanfetchuptoRM240/kilo• ExportedbyAirCargotoHongKong&MainlandChina• NewmarketpotentialtoSingapore,Taiwan,Korea,

Japan&Australia

Barramundi• Traditionallyconsumedbyconsumerslocalandoverseas• CanfetchuptoRM20/kilo• ExportedbyAirCargotoAustralia,China,Singapore&PeninsularMalaysia• NewmarketpotentialtoNewZealand&MiddleEast• StrongdemandfromlocalO&Gindustryforoffshorestaffmeals

Key OUTCOMES OF THE EPP/ KPIs (2020) WHAT NEEDS TO BE DONE?• 20TonnesofrawbirdnestworthaboutRM100million• 500birdhouses,10collectionunits,1birdnestprocessingunitand1

hatchery+nursery+feedproductionunit.• BasedontheperformanceoftheexistingswiftletfarminSabah

(estimatedtobe500birdhouses),thisindustryhasahighpotentialforfurtherdevelopmenttoincreasebirdnestproduction.Localdownstreamprocessingwillfurtherprovide7,628jobsopportunityandhigherreturn.

• GovernmentthroughLandandSurveyDepartmentshouldgivehighprioritytoalienateandgazettetherequiredlandareas(10-15acres).

• Privatelandownersshouldtakethisopportunitytoestablishasmartpartnershipwithinvestors.

KEY CHALLENGES MITIGATION PLAN• Timedurationforthestategovernmenttoalienatelandforthe

investorstoestablishbirdcluster.• e.g:Noaccessroad,electricityandwatersupplyavailabletobe

connectedtotheproposedsite.

• OncetheareashavebeenidentifiedtheinvestorshouldbegivenTOLpermittooccupyanddevelopthesaidland.

• Governmentshouldprovideinfrastructuresoncethelandhasbeenidentified(beitgovernmentlandorprivateland)

• Oncesmartpartnershiphasbeenestablishedbetweentheinvestorsandlandowners,investorsshouldstartdevelopmentworksimmediately.

Key OUTCOMES OF THE EPP/ KPIs • Pond&seaclusterisstockedwithfishbyDec2012• AchievefirstcycleofproductionoutputonDec2013• ConstructionofprocessingplantcommenceonMarch

2012• ConstructionofpondtocommenceonJune2012• Exportof1stcontaineroffishbyDec2013

WHAT NEEDS TO BE DONE?• Landallocation(TOL)tobeissuedbyJune2012• FishtobestockedbyDec2012• Completetheacquisitionoflandforprocessingplantby

March2012• EIAtobecompletedbyMay2012toenablepond

constructiontocommence.• Farm&processingplanttoobtainSPLAMcertification

KEY CHALLENGES• Basicinfrastructuresatthegrowoutfarm–accessroad,

electricity&pipedwater• Shortageofskilledmanpowerandexpertstoworkon

hatchery,nursery&growoutfarm• Financialsupportfrominstitutions• Delayindeliveryofqualityfishfriesfromhatcheryin

Taiwan&Indonesia.Thetwocountriesarerenownedtoproducttopqualityfishfriestosupporttheaquacultureindustry.

MITIGATION PLAN• EngageLand&Surveytoenableroad-reservetobe

establishedassoonaspossible.• Engagecontractorstobuildtemporaryaccessroadto

enablesiteconstructiontocommence.• EngageUMSandothertraininginstitutetofacilitatethe

employmentoflocalgraduates• EngageAgroBank&SMEBanktofacilitatesyndicated

loanassistnce• Bookingoffishfriestotakeplaceupon50%of

constructionstatus.AttempttosourcefromsecondarymarketlikePhilippines&Australia.

DESCRIPTION

Thisprojectconsistof500birdhouses,10collectionunits,1birdnestprocessingunitand1hatchery+nursery+feedproductionunit.

10privateinvestorswillbeselectedtoinvestinsettingupof50birdhouses+collectionuniteachin10differentlocation(clusters).

TheselectedlocationsarePitas(2clusters),KotaMarudu(2clusters),Kudat(2clusters),KotaBelud(2clusters),Tawau(1cluster)andLahadDatu(1cluster).

Oneinvestorwillsetupthebirdnestprocessingunitwhileanotherinvestorwillsetupthehatchery+nursery+feedproductionunitatKotaMarudu.

Thelandrequiredwilleitherbepurchasedbytheinvestorsorutilizeprivatelandsbasedonsmartpartnershipwiththelandowners.

Thebirdnestscollectedfromthe10clusterswillbesoldtotheprocessingplantafterundergoinggradingprocessatcollectionpoint.ProcessingwillbedoneinaccordancewithGoodManufacturingPractices(GMP).

Theendproductwillbestandardized,analysed,labelledandbrandedbeforeexporting.Toenabletheprojecttoproceedsmoothly,governmenthastoprovideinfrastructuressuchasroad,waterandelectricitysuppliesthroughitsagencies(JKR,JabatanAir,SESB).

KUALA PENYU

AGRICULTURE SECTOR

Page 4: EPP 1 : NATIONAL SEAWEED NUCLEUS · Product Line Facility & Cold Room) & Controlled Environment Farming (CEF) Project, a JV with BIA and SLDB would plant Chili, Tomato and Rock Melon

EPP 7 : INTEGRATED SHRIMP AQUACULTURE IN PINTASAN & TELAGA

DESCRIPTION

ToincreasetheExportofShrimpsinMalaysiafromtheexistingapprox.15,000tons/yearto45,000Tons/YearandleadingSabahtobecomeoneoftheKeyproducersoffarmedShrimpinMalaysia.

Toimprovelocalhouse-holdincomethroughAquaculture-basedeconomicdevelopment.

Todevelopatotalof2,400acresofvacantlandforShrimpsFarming&ProcessionPlant.

Toeradicatepovertyandimproveincomeof500HardcorePovertyhousehold.

Tocreate3,600newjobsopportunity.

Toacceleratetheregionaleconomicgrowthandbridgetheurban-ruraldisparityindevelopmentandintermsofaccessibilityandservices.

Toincreaseforeignearningofapprox.US$200million/year(ExporttoEU,USA,Japan,Korea,Taiwan&HongKong)

Phase1:Developmentofprawnfarming+PeelingHouseandmodernProcessingPlantfor1,200acres

Phase2:Developmentofprawnfarming+PeelingHouseandmodernProcessingPlantfor1,200acres

Key outcomes of the EPP / KPIs•Tocapturetheentirevaluechaintocreate

competitiveadvantageoverothermajorproducingcountries

•ToreducepovertyGapinSabah(95%inPitas&KBDistrict)

•TocreatejobsopportunityandsocialeconomicbenefitaswellasupSkilledworkforceintheaquacultureindustry–3,600JobsJobcreationforManagerial,supervisory,whitecollarandBluecollar(AverageearningperWorker=RM1,150/month)

•Toincreaseforeignearning(approx.US$300millionx/year)

•Betterallocationofresourcesanduseofun-developedLand(atotalof2,400acreswillbedeveloped)

What needs to be done?•ToensureadequatePowerSupply(Pintasan-1.5MW,

Telega-5.5MW)•ToensureadequateWatersupply(Telaga-2MLD)•ToprovideRegularwatertest(QCLab)

Key Challenges•InsufficientPowerSupplyconnectingtothearea

(Telaga&Pintasan)•InsufficientWaterSupply(Telaga)•ThreatofParasiteanddisease•ThreatofWaterpollution•Unskilled&inexperiencedworkforce

Mitigation Plan•InsufficientPowerSupplyconnectingtothearea

(Telaga&Pintasan)•InsufficientWaterSupply(Telaga)•ThreatofParasiteanddisease•ThreatofWaterpollution•Unskilled&inexperiencedworkforce

Telaga-1,000Acre(Ph1)Pintasan-200Acre(Ph1)

AGRICULTURE SECTOR

Page 5: EPP 1 : NATIONAL SEAWEED NUCLEUS · Product Line Facility & Cold Room) & Controlled Environment Farming (CEF) Project, a JV with BIA and SLDB would plant Chili, Tomato and Rock Melon

EPP 8 : SEA CUCUMBER AND TIGER GROUPER COMBINE CULTURE

DESCRIPTION

Hatchery & NurseryKgBinsuluk(5acres)

Grow Out Farms (300 acres)•KualaPenyu&KgBinsuluk•KgRumbiso,Matunggung•KgRosoh,KotaMarudu•KualaAbai,KotaBelud

Integrated ProcessingPlant (8 acres)•SabahAgro-IndustrialPreinct,Kimanis

R&D Facility•SAIPTechnologyPark–HatcheryTechnology

•KKIPTechnologyPark–ProcessingResearch

DESCRIPTION

End Product•Frozen&CleanedSeaCucumber

•Dried&CleanedSeaCucumber•LiveTigerGrouperexportviaaircargo

Job opportunity At Nursery & Grow-Out Farms•BlueCollar:350•WhiteCollar:100

At Processing Plant & Technology Center•BlueCollar:350•WhiteCollar:130

DESCRIPTION

Facilities•Deepfreezer(-48°C)•ColdStorage(-18°C)

Capacity•Deepfreezer10tonsperday•Storage400tons

Facilities•Airdryingfacility•Capacity:500kgpercycle•Dryingtime:8hours

Sea Ranching with Local CommunityAim: Alleviate rural poverty•Distribute1,500seacucumber,60%survivalrate

•Ranchingoutput900seacucumberperyear(1kgeach)

•ContractbuybackpriceRM40/kg

•AnnualalternativeincomeRM36,000(RM3,000permonth3participants1styear

Hatchery&Nursery

LandBasedGrow-OutFarm

IntegratedProcessing/ExportPlant

R&DFacility

Location:KualaPenyu,Membakut,Matunggung,KotaBelud,Taritipan,Kanibongan

Key outcomes of the EPP / KPIs•Fishproduction12,600tonnes&SeaCucumber

production2,304tonnes.•Achieveconsistentsurvivalrateofover70%•Createaminimum930jobopportunities•Improveskillleveloflocalworkers–especiallyin

handlingandhusbandry•Maintainaminimum50%oftotaloutputforlocal

consumption•Achievelocalandinternationalqualitycertification–

ASC,SPLAM&others

What needs to be done?•Allocationoflandatproposedprojectsite•Supportofgovernment/privatefinancialinstitution•Continuoustrainingoflocalworkerstoimprove

handlingandhusbandryskills•Improvementinbasicinfrastructure(roads,piped

water,electricity)

Key Challenges•Smallscaledproduction&locatedfarfrom

processingfacility•Lowproductionvolumes&lowqualityproduce•Availability/formulationofsustainablefishfeed•Maintainwaterqualityatmajorrivers/coastalareas•Improvedairconnectivitytomajorconsuming

market(intermsofloads&frequency)

Mitigation Plan•EngageUMS/feedmillstoformulatesustainable

feed&localfoodprocessors/slaughterhousesforpurchasetheirmeatrefuse

•Laboratorytotestwaterqualitybeforedischargingintogrow-outponds

•Upgradeofair-cargofacilitytoutiliselivefishexportcontainers–enabletocarryhighervolume(500kgvs5kg)

•Setupin-housegrowoutfarms

AGRICULTURE SECTOR