Investment Opportunities in Fisheries Industry in Sabah.

Department of Fisheries, Sabah

Objective

To provide overview on prospects and potentials for investment in Sabah’s Fisheries sector.

Presentation Outline

1. Introduction to Sabah.

2. Overview of Sabah’s Fisheries Industry.

3. Government Policies and Support.

4. Prospect & Investment Opportunities.

5. Fiscal and Tax Incentives.

General Information About Sabah

Situated at the northern tip of the island of Borneo.

Second largest state in Malaysia.

Area: 73,620 sq km.

Coastline: 1440 km.

Climate: Tropical.

Population : 2.6 million (11% of Malaysia’s population).

Language : Bahasa Malaysia, English & Chinese.

General Information About Sabah

Main exports ; palm oil, cocoa beans, veneer, plywood, sawn-timber and fishery products.)

Main imports : processed petroleum products, fertilisers, rice, sugar, machinery and products of iron and steel.

Gross Domestic Product (1999) : RM 9.1 billion (Fisheries Sector contributed 2.4%)

External Trade; year 2000

Export Value : RM 13.2 billion.

Import Value : RM 11.3 billion,

Sabah’s Agriculture Sector

Estimated 2 million ha. (30% of land) is suitable for agriculture. 1.2 million developed & cultivated.

The Government is promoting Sabah to be one of the nation’s major food production centre.

Main agriculture crops are : palm oil, rubber, cocoa, coconut and paddy.

Livestock : eggs, chicken, beef and duck.

Public Service Commission State Cabinet State Legislative

State Secretary

Chief Minister’s

Department

Ministry of Finance

Ministry Of Industrial

Development

Ministry Of Resource Development and

Information Technology

Ministry Of Infrastructure Development

Ministry Of Local

Government

Ministry Of Development Of Youth, Culture

and Sports

Ministry Of Agriculture and Food Industry

Ministry Of Tourism, Envi., Science & Tech.

Development

Ministry Of Rural and Entrepreneur

Development

Ministry Of Community

Development and Consumer Affair

Head Of State

SABAH STATE ADMINISTRATIVE STRUCTURE

Ministry of Agriculture and Food Industry

Ministry of Agriculture and Food Industry

 Agriculture Department

 Agriculture Department

 Fisheries Department

 Fisheries Department

Drainage and Irrigation

Department

Drainage and Irrigation

Department

Veterinary and Animal Services

Department

Veterinary and Animal Services

Department

 Fishermen

Cooperative

 Fishermen

CooperativeRural Development

Corporation

Rural Development Corporation

Sabah Rubber Fund Board

Sabah Rubber Fund Board

 

Usaha Maju Foundation

 

Usaha Maju Foundation

  DEPARTMENT AND AGENCIES UNDER THE MINISTRY OF AGRICULTURE AND FOOD INDUSTRY  

ORGANISATION CHART DEPARTMENT OF FISHERIES SABAH

ASSISTANT DIRECTOR I DEPUTY DIRECTOR ASSISTANT DIRECTOR II

DIRECTOR

MARINE

RESOURCE MANAGEMENT

LEGAL AND ENFORCEMENT

CORPORATE

ADMINISTRATION

26 FISHERIES DISTRICT OFFFICE

INLAND FISHERIES

BUDGET AND PLANNING

SOCIO ECONOMIC DEVELOPMENT

COMMUNICATION AND INFORMATION

ACCOUNT

AQUACULTURE & INDUSTRY (RESEARCH)

MARINE & RESOURCE (RESEARCH)

AQUACULTURE MARINE

REGIONAL DEVELOPMENT

Industry Overview

Potential to be a major contributor towards achieving national food production goals.

Net exporter of fish.

Production to cater for local consumption and exports.

Industry Overview

Fish : Important source of animal protein (consumption close to 40kg per capita).Status : traditional small-scale fisheries; commercial production has increased in the last 6 years.Fishermen : 22,000Annual Production: 210,000 tonne; value RM 800 millionState is self-sufficient in fresh, chilled and frozen fish. Fisheries Sector has 3 main sub-sectors -

Marine capture fisheriesMarine aquacultureInland Fisheries

Industry Overview

Total fish production ( year 2000): 211,000 mt, estimated value RM860 million.77% commercial gears23% traditional gears

Marine fish : 202,000 mt (RM730 million)

Marine Capture Fisheries

Overall main contributor.Potential yield : 252,000 tons where

60 % coastal resources40 % deep sea

Year 2000 production : 211,000 metric tons. Valued at RM867 millions)

Fish – 175,000 mt (RM520 mil.)Prawn - 11,500 mt (145 mil.)Crab –4,500 mt (RM 15 mil.)Molluscs – 11,400 mt (RM 44 mil.)Others – 159 mt ( 1.2 mil.)

Marine Aquaculture

A nascent industry,small-holders operations.In the last 5 years, operations has become more commercially-oriented.

Main culture;fish and prawns in ponds, fish cage culture, seaweed,oysters and mussels.Production : (2000) 7,000 mt; value RM 75 million

Marine Aquaculture

Prawn Industry

Important contributor.3000 hectares, 1500 ponds.

Number of operators : 128

Main species cultured : Tiger Prawn(Penaeus monodon)

Production : 2063 m.t. (2000), value at RM 60 million.

Hatcheries : 15 (Mostly di Tawau)

Freshwater Aquaculture

Number of Ponds (2000): 16,5001490 hectaresNumber of Farmers: 5500

Main Species: Nile bream (Tilapia), Patin (Pangassius), Marble Head Goby, Chinese Carps, Giant Gouramy, Javanese Carp, Ornamental Fishes.Production in 2000 was 5,200 mt; value RM60 million

Industry Overview

Fishery Total Trade and Balance for Sabah (1998 – 2000)(Value in RM Million) 

Year 1998 1999 2000

Export 317 319 383

Import 34 40 45

Balance of Trade

283 278 337

Industry Overview

2000 export statistics;

-Processed prawns ; RM238 million

-Squid, cuttlefish and octopus ; RM20 million

-Dry/processed seaweed; RM10 million.

-Lobsters; RM5 million.

Prawn Fisheries

Important contributor to marine fisheries in terms of value.Year 2000 exports : 8126 tonne with value of RM238 million (more than 50% of the total value of fisheries exports (RM383 mil).

No. of Prawn-Processing Factories: 17.Exports markets: Japan (51%), USA, Hong Kong, Italy, Singapore and Spain. exports of Shrimp - fresh n shell, chilled or frozen.

Industry Overview

Exports of Processed Prawn, 1998 – 2000, Sabah.(Value in Million)

Year 1998 1999 2000

Exports of Shrimp (fresh, in shell, chilled, frozen)

RM 180

(5414 metric tons)

RM188(6835 metric tons)

RM 238

(8126 metric tons)

Policies and Support

Government Policy on Investment; very keen to promote and facilitate investors.

Formulation of 3rd National Agriculture Policyand 2nd Sabah Agriculture Policy.Strategic National and state policy are ; Increase food production. Commercialisation of agro-based industry. Promotion of sustainable and globally competitive agriculture. Increase in exports and investment.

Policies and Support

Fisheries identified as potential candidate for investment.

Established procedures/guidelines for investors.

Business and investors friendly approach.

Incentives to increase investment and food production

Policies and Support

State Policy for Fisheries Industries Investment and Development are:- Maximize Production. Adoption of Efficient Technologies. Promotion of JVs (Joint Ventures). Large-Scale Aquaculture Production.

Investment are encourage in :- Prawn culture. Seed Production (marine fish). Seaweed Cultivation. Down stream Processing. Large-scale fish production. Support Facilities

Investment In Sabah’s Fisheries Sector

Strategic location in proximity to the ASEAN countries, China, Japan and the BIMP-EAGA region provide trade and investment opportunities.

Government is receptive and supportive of FDIs (Foreign Direct Investment) in finance, technology, marketing and distribution network.

Economically, Socially and politically stable state. Attractive incentives are available, friendly and safe destination to invest in.

Investment Incentives

Public Sector providing advisory, technical assistance, financial and investment incentives.

Funding for local investors is available through Fund For Food (3F Fund).

Tax reduction and incentives for investments in selected food production/processing.

Promoted product in fisheries sector are spawning, breeding and culturing of aquatic products, off-shore fishing, processing of aquaculture feed and aquatic products.