INVESTMENT OPPORTUNITIES IN THE EAST COAST ECONOMIC REGION (ECER) OF MALAYSIA

AGRICULTURE

Global Food Security

• Oil and food prices hit all time high in 2008

• Rising prices are a precursor to the crisis of shortage

• Food resources are depleting at faster rate than they can be regenerated

• Concentrated food origination point with global demand spread

• New Model emerge as “TRANSNATIONAL AGRICULTURE”

“FOOD SECURITY” is the key to future country prosperity.

Global Trend: Transnational Agriculture

• Daewoo vying to lease 1.3m ha of farmland (half the size of Belgium) from the Madagascar government for 99 years to support the South Korean needs

• Karuturi Global (an Indian company) has acquired 300,000 ha of farmland in Ethiopia

• Morgan Stanley has bought 40,000ha of farmland in Brazil• In 2008, a Dubai-based investment firm acquired 800,000

acres in Pakistan• In 2008, IFC invested US$1.4bn in the agri business supply

chain• In 2008, Goldman Sachs invested US$300m to acquire 10

poultry farms in China• Today, China cultivates 2.47m acres in IndonesiaSource: IDFC Investment Banking, India

“TRANSNATIONAL AGRICULTURE” is the Investment Opportunities in ECER Malaysia. Come, Invest and Prosper with us.

AGRICULTURE

Large Scale Commercial Farming

Modern Technology & Precision Agriculture

Fully Integrated Value Chain

Investor Driven

BUSINESS STRATEGY

TOK BALI INTEGRATED FISHERY PARK

PASIR MAS HALAL HUB

INTEGRATED PINEAPPLE PLANTATION

(ROMPIN)

DANAU TO’ UBANFRESHWATER AQUA.

KUALA BERANG DAIRY CATTLE, GOAT & SHEEP

PRODUCTIONS

KENYIR LAKEFRESHWATER AQUA.

MARAN POULTRY PRODUCTION PARK

PEKAN GOAT & SHEEP PRODUCTION

MUADZAM SHAH DAIRY CATTLE PRODUCTION

GAMBANG HALAL HUB

Opportunity 1 - Poultry Industry

Opportunity 2 – Dairy Cattle Industry

Opportunity 3 - Goat & Sheep Industry

Opportunity 4 - Fishery Industry

Opportunity 5 - Pineapple Industry

ECER Agriculture Investment Opportunities

6

Poultry Investment Opportunity

7

TO BE DEVELOPED ON 150 HECTARES OF LAND

Poultry Investment Opportunity

- Project Location

SERENGKAM, MARAN,PAHANG

INVESTMENT OPPORTUNITIES:• Upstream production• Full export compliance• Meets Halal standards

Broiler Farms

Hatchery

Primary Processing

Value-added Processing

150,000 mt/year

70,000 mt/year

50,000 mt/year

350,000eggs/year

8

Poultry Production Park

- Project Features

Feed Mill

Breeder Farm

150 Ha In Maran, Pahang

Poultry Investment Opportunity

- Project Financial Considerations

Investment Investment Value (USD) IRR (%) Payback (Year)

Fully Integrated Poultry Park

• Investment in breeders farm, hatchery, broiler farms, feed mill and processing centre for export.

• Fully integrated bio-security poultry productions in 150 ha acres of land.

66.2 mil 15% 7 years

10

Dairy Cattle Farming Investment Opportunity

Total population 5,000 cows, total production 9 ml of Fresh Milk

Satellite Farms50 – 500 milking

cows / farm

Satellite Farms50 – 500 milking

cows / farm

Satellite Farms50 – 500 milking

cows / farm

Produces value added dairy products (from 18 mil litre)(i.e. Pasteurized & UHT milk, Halal Cheese, Yogurt etc)

Tier3COMMERCIAL FARM

Tier 2HEIFERS FARM

Tier 1NUCLEUS FARM

Muadzam Shah Cattle Research & Innovation CentreTotal population 1,250 cows

Total production 2.25 ml of Fresh Milk

Total population 3,750 cows, total production 6.75 ml of Fresh Milk

Kuala Berang Commercial Dairy Farm

(1,250 heads)

Tanah Merah Commercial Dairy Farm

(1,250 heads)

MersingCommercial Dairy Farm

(1,250 heads)

Business Proposal : Integrated Dairy Farming

Integrated Value Chain

Gambang Halal Park

VALUE ADD Pasteurized Cows Milk

Business Proposal : Integrated Dairy Farming

Proposed Integrated Dairy Investment Location

Gambang Halal Hub, Kuantan, Pahang

Nucleus FarmMuadzam Shah,

Pahang

1,250 cows2.25 ml milk

1,200 ha

Multiplier Farm, Mersing, Johor

1,250 cows2.25 ml milk

400 ha

Multiplier Farm, Tanah Merah,

Kelantan

1,250 cows2.25 ml milk

400 ha

Multiplier Farm, Kuala Berang, Terengganu

1,250 cows2.25 ml milk

400 ha

Business Proposal : Integrated Dairy Farming

Investment Summary – Dairy Farming

Production of 27.3 million liter of Fresh Milk Annually (by year 2015)

Descriptions Results

2011 2015

No of Breeding Cows 5,000 7,650

No of Lactating Cows 4,750 6,500

Milk Production (litre) 8.5 mil 27.3 mil

Annual Operating Cost RM20 mil RM30 mil

Annual Revenue RM17 mil RM63 mil

Capital Cost 4 farms RM116 million

Net Present Value (NPV) RM60 million

Internal Rate of Return (IRR) 19 %

Payback Period 5.8 years

Return on Investment (ROI) 28%

Total Capital Investment of RM116 million and average annual Operating Cost of RM24.8 million a year. Average Revenue on investment is RM44 million a year until year 2015.

Business Proposal : Integrated Dairy Farming

Investment Summary – Dairy Milk ProcessingProcessing of 36 million liter of Fresh Milk Annually (by year 2015)

Total Capital Investment of RM10 million and annual Operating Cost of RM49million a year. Revenue on investment is RM54 million a year.

Business Proposal : Integrated Dairy Farming

Investment Summary – Dairy Milk ProcessingProcessing of 36 million liter of Fresh Milk Annually (by year 2015)

Descriptions Results

2011 2015

Own Farm Milk Production (liter) 8.5 mil 27.3 mil

Satellite Farm Milk Supplies (liter) 9.0 mil 9.0 mil

Total Processed Milk (liter) 17.5 mil 36.3 mil

Annual Operating Cost 50 mil

Annual Revenue 54 mil

Capital Cost (Dairy Processing) 10 mil

Net Present Value (NPV) 13.5 mil

Internal Rate of Return (IRR) 39%

Payback Period 3.5 year

Return on Investment (ROI) 41%

Total Capital Investment of RM10 million and average annual Operating Cost of RM50 million a year. Average Revenue on investment is RM54 million a year

Large Scale Goat & Sheep Farming Investment Opportunity

Total population of 15,000 breeders

Total population 55,000 heads

Produces value added Prime Cuts, Cold Storage, Marinated

Tier3COMMERCIAL FARM

Tier 2MULTIPLIER FARM

Tier 1NUCLEUS FARM

Goat & Sheep Industry Investment Opportunity

- Strategic Implementation Plan

Gambang & Pasir Mas Halal Park

Kuala Berang Goat Breeding & Innovation Centre3,900 Breeders

Kuala Berang Multiplier Farm (Boer)

10,000 Breeders

Pekan Multiplier Farm (Doper)

5,000 Breeders

Ulu Tersat Commercial Farms

15,000 heads

Outside Tersat Commercial Farms

15,000 heads

Pekan Agropolitan25,000 heads

MEAT PROCESSINGBUSINESS

Business Proposal : Integrated Goat Farming

Proposed Integrated Goat Investment Location Pasir Mas Halal Hub,

Kelantan

Nucleus FarmKuala Berang, Terengganu

3,900 breeder

1,200 ha

Commercial Farm, Pekan, Pahang

5,000 breeder (Doper)

400 ha

Multiplier Farm, Kuala Berang, Terengganu

10,000 breeder

400 ha

Gambang Halal Hub, Kuantan, Pahang

Business Proposal : Integrated Goat Farming

Investment Summary – Goat Farming (Boer)

Production of 22,447 heads annually (by year 2015)

Descriptions Results

2011 2015

No of Breeding Does 10,000 10,485

Total Kids Born 12,350 23,591

Sale of Goats (heads) 525 22,447

Annual Operating Cost RM2.8 mil RM4.0 mil

Annual Revenue RM0.18 mil RM12.97 mil

Capital Cost RM28.5 million

Net Present Value (NPV) RM13.9 million

Internal Rate of Return (IRR) 19 %

Payback Period 5.4 years

Return on Investment (ROI) 16 %

Total Capital Investment of RM31.25 million and average annual OperatingCost of RM4.0 million a year. Average Revenue on investment is RM12.97 million a year until year 2015.

Business Proposal : Integrated Goat Farming

Investment Summary – Sheep Farming (Doper)

Production of 10,362 heads annually (by year 2015)

Descriptions Results

2011 2015

No of Breeding Does 5,000 5,243

Total Kids Born 6,175 10,817

Sale of Goats (heads) 263 10,362

Annual Operating Cost RM1.59 mil RM2.19 mil

Annual Revenue RM0.091 mil RM6.50 mil

Capital Cost RM15.7 mil

Net Present Value (NPV) RM5 mil

Internal Rate of Return (IRR) 16%

Payback Period 5.8 year

Return on Investment (ROI) 13%

Total Capital Investment of RM17.31 million and average annual Operating Cost of RM2.13 million a year. Average Revenue on investment is RM6.50 million a year until year 2015.

Business Proposal : Integrated Goat FarmingInvestment Summary – Goat and Sheep Meat Processing

Processing of 22,447 heads of goat and 10,362 heads of sheep annually (by year 2015)

Total Capital Investment of RM11 million and annual Operating Cost of RM22million a year. Revenue on investment is RM30 million a year.

Runchang, Pekan, Pahang

Business Proposal : Integrated Goat FarmingInvestment Summary : Goat and Sheep Meat Processing (Carcasses)

Processing of 22,447 heads of goat and 10,362 heads of sheep annually (by year 2015)

Descriptions Results

2011 2015

Number of Animal Slaughtered per day 200 250

Annual Operating Cost RM22.69 mil RM28.26 mil

Annual Revenue RM25.5 mil RM31.88 mil

Capital Cost (Meat Processing) RM11.0 mil

Net Present Value (NPV) RM9.12 mil

Internal Rate of Return (IRR) 35%

Payback Period 5.0 years

Return on Investment (ROI) 19%

Total Capital Investment of RM11 million and annual Operating Cost of RM22million a year. Revenue on investment is RM30 million a year.

Herbal and Biotechnology Product Clusters Investment Opportunity

Up Stream Mid Stream Down Stream

It encompasses all plants or their parts used for health reasons and for extraction of essential oils, flavour compounds, colouring compounds or other natural compounds used in chemical industries.

Business Proposal : Herbal and Biotechnology Product Clusters

Integrated Value Chain

Kacip Fatimah (Labisia Pumila)

Misai Kucing (Orthosiphon Stamineus)

Hempedu Bumi(Andrographis Paniculata)

Lemon Myrtle (Backhousia Citriodora)

Tongkat Ali (Eurycoma Logifolia)

Dukung Anak (Phyllantus Niruri)

Agarwood (Oudh)

Business Proposal : Herbal and Biotechnology Product Cluster

Proposed Herbal Cluster Investment Location

Rantau Manis Herbal Plantation (323 ha)

Pasir Raja Herbal Plantation (461 ha)

Chegar Perah Herbal Plantation (334 ha)

Durian Mentangau Herbal Plantation (151 ha)

Value-added Processing Centre, Batu Talam

First Phase

Second Phase

Total Proposed Land 1,269 ha

TaiwanPrices of Agarwood for medicinal use

vary between US$ 3,000 to US$30,000 per kg and processed oil between US$ 7,000 to US$ 61,000 a

litre. Large high quality pieces suitable for ornamental sculptures

can sell for up to US$100,000 per kg

JapanUnprocessed Agarwood pieces prices ranging from US$320 to

US$22,700 per kilogram with the highest grades selling for between US$9,000 to US$272,000 per kg

Middle EastArabian retailer specializing in

oudh has over 550 retail outlets across 17 countries and is one of

the world’s largest perfume retailers in a market worth US$3.3

billion a year

Source : TRAFFIC

Business Proposal : Herbal and Biotechnology Product Clusters Special Focus Crop for Investment : Agar wood (Oudh)

• The source of Agarwood (Oudh)• Essential oil, incense, medicinal

use – cough, asthma, skin diseases

Aquilaria Malaccensis

Production of 500 tonne of Agarwood with One Cycle of Harvest after 7 yrs of planting*

Descriptions Results

2011 2017

Number of trees available for Agarwood resin(60% of trees produce Agarwood resin)

833 500

Annual Operating Cost RM104 million

Annual Revenue RM125 million

Capital Expenditure inclusive of 1st Working Capital RM120 million

Net Present Value (NPV) RM100 million

Internal Rate of Return (IRR) 34 %

Payback Period 1.75 years

Return on Investment (ROI) 124%

Total Capital Investment of RM120 million and average annual Operating Cost of RM104 million a year. Revenue on investment is estimated to be RM125 million on year 2017

Business Proposal : Herbal and Biotechnology Product Clusters Agarwood (Oudh) : Investment Summary

*Assuming 500 ha of Aquilaria spp plantation with each tree estimated to produce 1,000 gram of Agarwood and price is RM500/kg or RM0.5 million per tonne

28

Business Proposal Integrated Grouper &

Seabass Farming

MalaysiaImports 386,459 MT of which 63.5% are in fresh/frozen fish

America• Imports reaching 2.34 million MT

and USD13.12 billion in 2009.

• Total tilapia imports in 2009 were 183,297 MT at a value of USD697 million

North Asia• China imports USD3.1 Billion of frozen

fish & USD1.5 Billion fish meal

• Korea imports USD3.124 Billion of fisheries products

South China/HK• HK imports USD2.245 billion

of fisheries products

• Live reef food fish trade is worth US$800 million

Middle-EastUAE and Saudi import USD500 million worth of fisheries products

Source: FAO and market intelligence

Global Fisheries Industry OverviewMarket Opportunity: World Fisheries Import

Business Proposal : Integrated Grouper and Sea Bass Farming

Grouper (Epinephelus spp.)Descriptions Specifications

Official Name GrouperLocal Name (Malay) Kerapu

ReproductionMost fish spawn between May and August. They are protogynoushermaphrodite, i.e. the young are predominantly female but transform into males as they grow larger (at about 10 to 12 kg).

Feedstock Formulated pellets, fish, octopus, crabsGrowth Period 12 – 14 monthsSellable Weight 500 – 700 gramCultivation cycles per year 1 cyclePotential Export Market China, Hong Kong, Japan & South KoreaDistance from Malaysia to Hong Kong 2,400 kmEx-Wholesale Price per kg RM$50 – RM$80 per kg | USD$16 per kg – USD$26 per kg

Wholesale Market Price of Live Marine Fish in Hong Kong

Hong Kong Market Price as at 1 January 2011Tiger Grouper HK$250.00 | USD$32Camouflage Grouper HK$290.00 | USD$37Red Grouper HK$522.00 | USD$67Leopard Coral Grouper HK$584.00 | USD$75

Business Proposal : Integrated Grouper and Sea Bass Farming

Asian Sea Bass (Lates calcarifer)

Descriptions Specifications

Official Name Asian Sea Bass (Lates calcarifer)

Local Name (Malay) Siakap

ReproductionA protandrous hermaphrodite i.e. usually one female with several smaller male; male can change sex if female removed

Feedstock Formulated pellets, fish, octopus, crabs

Growth Period 12 – 14 months

Sellable Weight 500 gram – 2 kg

Cultivation cycles per year 2 cycles

Potential Export Market China, Taiwan, Hong Kong, Japan & South Korea

Distance from Malaysia to Hong Kong 2,400 km

Ex-Wholesale Price per kg (fresh) RM12 per kg | USD4.0 per kg

Ex-Wholesale Price per kg (fillet) RM40 – RM70 per kg | USD20 – USD23 per kg

HATCHERYGROW-OUT (CAGES)

MARKET

Business Proposal : Integrated Grouper and Sea Bass Farming

Integrated Value Chain for Grouper & Seabass

Investment in production of 3,700 tonnes Grouper annually

Export to Hong Kong & China (Live & Processed) and other

global market

Fully Integrated Value Chain Development InvestmentInvestment in production of 9.6 mil fingerlings annually

Investment in Halalfish-based Processing (frozen, fillet, smoked,

fish meal)PRIMARY PROCESSING

GROW-OUT (POND)

SEA BASS

FRESH WHOLE FISH

GROUPER

Investment in production of 3,000 tonnes Sea Bass annually

Investment in production of 10 mil fingerlings annually

Production of 10 million Grouper Fingerlings (4”) Annually

Business Proposal : Integrated Grouper and Sea Bass Farming

Grouper Fish Hatchery Investment

Descriptions Specifications

Location Merchong in the District of Pekan, Pahang

Land Size 10 - 24 hectare

Land Owner State Government of Pahang

Integrated Facilities Water Intake, Hatchery, Nursery, Workers Quarters, Bio-security, Discharge Pond, Treatment Pond, Office and Marketing Centre

Hatchery Technology Recirculation Aquaculture System (RAS), fully automated

Water Intake Sea water (600 m from the coastal)

Species Hatched Grouper

Brood stock Tank 12 units

Live feed Production Artemia, Rotifer

First Feeding Tank 24 units

Nursery Tank 24 units ; Expandable to another 12 unitsFish Fry Production Capacity

12 million fry of 25 mm size per fish seed annually

Fish Fingerling Production Capacity

10 million fingerlings of 100 mm per fish fingerling annually

Lease Arrangement 30 – 60 years

Production of 10 million Seabass Fingerlings (4”) Annually

Business Proposal : Integrated Grouper and Sea Bass Farming

Seabass Fish Hatchery Investment

Descriptions SpecificationsLocation Merchong in the District of Pekan, Pahang

Land Size 10 - 24 hectare

Land Owner State Government of Pahang

Integrated Facilities Water Intake, Hatchery, Nursery, Workers Quarters, Bio-security, Discharge Pond, Treatment Pond, Office and Marketing Centre

Hatchery Technology Recirculation Aquaculture System (RAS), fully automated

Water Intake Sea water (600 m from the coastal)

Species Hatched Asian Seabass

Brood stock Tank 6 units

Live feed Production Artemia, Rotifer

First Feeding Tank 12 units

Nursery Tank 12 units ; Expandable to another 12 unitsFish Fry Production Capacity

12 million fry of 25 mm size per fish seed annually

Fish Fingerling Production Capacity

10 million fingerlings of 100 mm per fish fingerling annually

Lease Arrangement 30 – 60 years

Business Proposal : Integrated Grouper and Sea Bass Farming

Proposed Hatchery Location for Grouper & Seabass

ZIA Permatang Pauh

PKNP Tanjung Batu

ZIA Tanjung Batu

Agrobest FarmAgropolitan Tg Batu

ZIA Merchong

Proposed Hatchery Site

Business Proposal : Integrated Grouper and Sea Bass FarmingGrow-out Farm Investment for Grouper

Production of 3,700 tons of Tiger Grouper Annually

Each of the proposed site could potentially produced 3,700 tons of Tiger Grouper Annually (4% of Fish Import in Hong Kong)

To produce 3,700 tons fish require :-3,000 HDPE cages (6 x 6 m ; 4 m depth ; 1.2 ton/cage @ 65% survival rate)20 ha of sea surface area9.6 million of Grouper fingerlings (4”)

Business Proposal : Integrated Grouper and Sea Bass FarmingGrow-out Farm Investment for Sea Bass

Production of 3,000 tons of Sea Bass Annually

Each of the proposed site could potentially produced 3,000 tons of Sea Bass Annually

To produce 3,000 tons fish require :-290 pond structure (4 ponds @ 1 ha ; 12.87 ton/ha @ 65% survival rate )145 ha of surface area10 million of Sea Bass fingerlings (4”)

Business Proposal : Integrated Grouper and Sea Bass Farming

Proposed Grow-out Farm Location

Merchong, Pekan, Pahang

(Hatchery)

Pulau Seribuat, Mersing, Johor – for Grouper Cages

Gambang Halal Hub, Kuantan, Pahang

(Processing)

Pulau Permatang Pauh, Pekan, Pahang – for Sea Bass Pond

Business Proposal : Integrated Grouper and Sea Bass FarmingProposed Product for Grouper : Live Grouper Export

Total Capital Investment of RM103 million and total annual Operating Cost of RM33mil. Estimated average annual revenue on total investment is RM35 million.

SEAFOOD TRANSPORT BIN (STB)

Export to Hong Kong & China (Live & Processed) and other global market

FRESH WHOLE FISH

Business Proposal : Integrated Grouper and Sea Bass Farming

Proposed Processed Products for Seabass : Fillet

Total Capital Investment of RM102 million and total annual Operating Cost of RM28 million a year. Estimated average revenue on total investment is RM23 mil a year.

Business Proposal : Integrated Grouper and Sea Bass FarmingIntegrated Investment Opportunities for Grouper & Seabass

Fully Integrated Investment Development Proposal

Descriptions Results

Capital Cost for Hatchery RM121 million

Capital Cost for Grow-Out RM120 million

Capital Cost for Fillet Processing RM12 million

Total Capital Investment* RM300 million

Internal Rate of Return (IRR) 61%

Payback Period 1.6 years

Net Present Value (NPV) RM305 million

Return on Investment (ROI) 12%

*Inclusive of 1st year working capital

Business Proposal : Integrated Grouper and Sea Bass Farming

Halal Collagen

• Processing waste such as fish skins and scales could be transform into high value by-products such as Collagen.

• Collagen is a protein used extensively in many applications including foods, health drinks, anti-aging products, cosmetics and pharmaceuticals

• It improves skin strength and elasticity, strengthens blood vessels and tissue development.

• Collagen has been widely used in cosmetic surgery, as a healing aid for burn patients for reconstruction of skin and a wide variety of dental, orthopedic and surgical purposes.

Business Proposal : Integrated Grouper and Sea Bass Farming

Halal Collagen – Overview of Market Size

…..

Total world production of gelatin/collagen 358,000 MT/year Europe supplying 48% (172,000 MT) and United States supplying 38% (136,000 MT)

Current Halal gelatin/collagen producer – Pakistan 3,000 MT/year this is only about 0.8% of world production

Demand of gelatin/collagen in Indonesia alone 3,000 MT/year

Based on world Muslim population, the market share of gelatin/collagen is about 17–20% of the world market or 50,000 MT/year

Business Proposal : Integrated Grouper and Sea Bass Farming

Halal Collagen – Production

…..

Production from 3,000 ton of Sea Bass processed annually.

Descriptions Results

Farm Production 3,000 ton of seabass fish

Volume of fish skin & scales 180 ton (6% of seabass bodyweight)

Production of Halal Collagen 20 ton (15% yield from skin & scales)

Halal Collagen Price RM7,700 per kg (High Grade)

Revenue RM1.54 million/year

Potential Aquaculture Production in Malaysia (10% of 387,000 ton)

38,700 ton

Production of Halal Collagen 3,500 ton (6% of world halal collagen demand)

Potential Revenue RM270 million/year

45

Business Proposal Integrated Tilapia Farming

Business Proposal : Integrated Tilapia Production

Global Tilapia Production and Demand is High

Tilapias are one of the most important farmed fish today.

Expected to exceed 8.9 million tonnes by 2020.

2000 sales = US$ 1,706,538,200 2005 sales = US$ 2,457,312,000 2010 sales > US$ 5,000,000,000

FAO FishStat 2007

Business Proposal : Integrated Tilapia Production

Nile Tilapia (Oreochromis niloticus)

Descriptions Specifications

Species Scientific Name Oreochromis niloticus

Common Name Nile Tilapia

ReproductionAsynchronous breeders, spawning occurs throughout the year in the tropics, sexual maturity reached at 5-6 months in ponds

Feedstock Formulated pellets

Growth Period to Market Size

5 – 6 months

Sellable Weight 400 – 500 gram per piece

Potential Export Market

Middle East, North Africa, USA, Europe, China

Ex-Wholesale Price per kg (Fillet)

RM 18.00 per kg | USD 5.50 per kg

HATCHERY

GROW-OUT

MARKET

Export to Middle East, EU countries , US and other global

markets

Fully Integrated Value Chain Development Investment

Investment in production of 135 million fingerlings

annually

Investment in Halal, HACCP & GMP Fish

processing plant

PROCESSING

Business Proposal : Integrated Tilapia Production

Integrated Value Chain for Tilapia Fillet

HATCHERY

Investment 1,125 HDPE cages to meet the target production of 90,000MT of Tilapia fish annually

Production of 30,000MT Tilapia

Fillet & other products

FILLET & VALUE ADD

Business Proposal : Integrated Tilapia Production

Integrated Investment for Tilapia Fillet

Financial Indicators

Descriptions Results (RM)

+ Capital Cost for Hatchery 70.0 million

+ Capital Cost for Grow-Out 285.0 million

+ Capital Cost for Processing Plant 44.5 million

= Total Capital Investment* RM 399.50 mil

Internal Rate of Return (IRR) 27%

Payback Period 4.29 years

Return on Investment (ROI) 14%

*Excluding 1st year working capital

Production of 135 million Tilapia Fingerlings (4”) Annually

Business Proposal : Integrated Tilapia Production

Tilapia Hatchery Investment

Descriptions Specifications

Location

1. Sungai Camar, District Of Hulu Terengganu, Terengganu- Approximately 20 Ha

2. Kg. Chapu, District Of Hulu Terengganu, Terengganu- Approximately 15 Ha

Land Owner State Government

Integrated Facilities Water Intake, Hatchery, Nursery, Spawning Ponds, Workers Quarters, Discharge Pond, Treatment Pond, Reservoir, Office

Culture System Flow Through System

Water Source Fresh Water River

Fish Fry Production Capacity

135 million Fry of 25 mm Annually

Fish Fingerling Production Capacity

120 million Fingerlings of 100 mm Annually

Business Proposal : Integrated Tilapia Production

Proposed Hatchery Location

Kg. Chapu

Sg. Chamar

Production of 90,000 metric tonnes of Tilapia Annually

Business Proposal : Integrated Tilapia Production

Tilapia Grow-out Investment

Descriptions Specifications

LocationSungai Como, Kenyir Lake, District of Hulu Terengganu, Terengganu (Designated as Aquaculture Industry Zone)

Available Area Approximately 2,800 ha

Land Owner State Government

Culture System HDPE Cage Culture System

Supporting Equipments Barges, Crane

Water Source Fresh Water River

Fish Production Capacity

90,000 mt annually

Business Proposal : Integrated Tilapia Production

Grow-out Farm Investment

To produce 90,000 mt of Tilapia require :-

1,125 units of HDPE cages (20 m diameter)

Each capable of producing 100 mt fingerlings per year

20 units of cages per modules (Total 57 modules)

Business Proposal : Integrated Tilapia Production

Proposed Grow-out Farm Location

Kenyir Lake, Terengganu

Production of 30,000MT of Fillet Annually

Business Proposal : Integrated Tilapia Production

Tilapia Processing Plant Investment

Descriptions Specifications

Location

i. Fish Processing Park, Kuantan, Pahang

ii. Gambang Halal Hub, Pahang

iii. Tok Bali Integrated Fisheries Park, Kelantan

iv. Chendering Industrial Area, Terengganu

Integrated Facilities SME processing units, sorting and distribution centre, colroom, access roads, drainage system, electricity and water, etc.

Fillet Production Capacity

30,000 metric tonnes per year

Business Proposal : Integrated Tilapia Production

Proposed Processing Plant Location

Gambang Halal Hub, Pahang

Chendering Industrial Area, Terengganu

Fish Processing Park, Kuantan, Pahang

Tok Bali Integrated Fisheries Park, Kelantan

Business Proposal

Halal Collagen – Production

…..

Production from 90,000 ton of Tilapia processed annually.

Descriptions Results

Farm Production 90,000 ton of tilapia fish

Volume of fish skin & scales 5,400 ton (6% of tilapia bodyweight)

Production of Halal Collagen 810 ton (15% yield from skin & scales)

Halal Collagen Price RM7,700 per kg (High Grade)

Revenue RM6.24 million/year

58

Integrated Pineapple Plantation Investment Opportunity

TOP 5 IMPORTERS OF PINEAPPLES 2008Pineapples Import in MT

Country 2008 2004 Percent Change

1 United States 713,584 513,760 38.89%

2 Belgium 309,156 213,551 44.76%

3 Netherlands 228,079 61,162 272.91%

4 Germany 173,060 87,504 97.77%

5 Italy 149,255 99,519 49.97%

Sources: FAOSTAT data 2008 (last accessed Nov 24th, 2010)

Pineapple output in 2008 was governed by Asia with a share of 49 percent of global production, followed by Latin America and the Caribbean (38 percent) and Africa (12 percent). Costa Rica was the world's number one exporter of fresh pineapples in 2008.

Integrated Pineapple Plantation Investment Opportunity - Opportunity in Pineapples

60

TO BE DEVELOPED ON 2000 HECTARES OF LAND

Integrated Pineapple Plantation Investment Opportunity

- Project Location

ROMPIN, PAHANG

INVESTMENT OPPORTUNITIES:• Upstream to downstream

production• Production / Cultivation of Fresh

Pineapple • Full export compliance• Meets Halal standards

5,000 acres Integrated Plantation

5,000 acres Integrated Plantations

50,000 mt/yearLarge Scale Commercial Plantation

Focus for Export Fresh Pineapple Markets

55,000 mt of Fresh Pineapple Annually

Integrated Collection, Processing & Packaging Centre (CPPC)

61

Integrated Pineapple Plantation Investment Opportunity

- Project Features

Integrated Pineapple Plantation Investment Opportunity

- Project Financial Considerations

Investment Investment Value (USD) IRR (%) Payback (Year)

Integrated Pineapple Plantation

• Pineapple productions from 5,000 acres of integrated plantations

• Investment in Collection, Processing & Packaging Centre (CPPC).

• Marketing, Export and Distributions of Pineapple Produce.

32.3 mil 10% 8 years

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