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.
 SABAH STATE ADMINISTRATIVE STRUCTURE

Head Of State

Public Service Commission State Cabinet State Legislative

State Secretary

Chief Ministry of Ministry Of Ministry Of Resource Ministry Of Ministry Of

Minister’s Finance Industrial Development and Infrastructure Local
Department Development Information Technology Development Government

Ministry Of Ministry Of Ministry Of Ministry Of Rural Ministry Of

Development Of Agriculture and Tourism, Envi., and Community
Youth, Culture Food Industry Science & Tech. Entrepreneur Development and
and Sports Development Development Consumer Affair
  DEPARTMENT AND AGENCIES UNDER THE MINISTRY OF AGRICULTURE
AND FOOD INDUSTRY  

Ministry
MinistryofofAgriculture
Agricultureand
and
Food Industry
Food Industry

 Agriculture  Fisheries Drainage and Veterinary and

 Agriculture  Fisheries Drainage and Veterinary and
Department Department Irrigation Department Animal Services
Department Department Irrigation Department Animal Services
Department
Department

 
    
Fishermen Rural Development Sabah Rubber Fund Usaha Maju
Fishermen Rural Development Sabah Rubber Fund Usaha Maju
Cooperative Corporation
Corporation Board
Board Foundation
Foundation
Cooperative
 ORGANISATION CHART
DEPARTMENT OF FISHERIES SABAH

DIRECTOR

ASSISTANT DIRECTOR I DEPUTY DIRECTOR ASSISTANT DIRECTOR II

MARINE INLAND FISHERIES AQUACULTURE &

INDUSTRY
(RESEARCH)

RESOURCE BUDGET AND MARINE &

MANAGEMENT PLANNING RESOURCE
(RESEARCH)

LEGAL AND SOCIO ECONOMIC

ENFORCEMENT DEVELOPMENT AQUACULTURE
MARINE

CORPORATE COMMUNICATION
AND INFORMATION
REGIONAL
DEVELOPMENT

ADMINISTRATION ACCOUNT

26 FISHERIES DISTRICT OFFFICE

 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 : 22,000
Annual Production: 210,000 tonne; value
RM 800 million
State is self-sufficient in fresh, chilled
and frozen fish.
Fisheries Sector has 3 main sub-sectors -
Marine capture fisheries
Marine aquaculture
Inland Fisheries
 Industry Overview

Total fish production ( year 2000):

211,000 mt, estimated value RM860
million.
77% commercial gears
23% traditional gears

Marine fish : 202,000 mt (RM730

million)
 Marine Capture Fisheries

Overall main contributor.

Potential yield : 252,000 tons where
60 % coastal resources
40 % 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): 16,500

1490 hectares
Number 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 283 278 337

of Trade
 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 RM RM188 RM 238

of Shrimp 180 (6835 (8126
(fresh, in (5414 metric metric
shell, metric tons) tons)
chilled, tons)
frozen)
 Policies and Support

Government Policy on Investment; very keen

to promote and facilitate investors.

Formulation of 3rd National Agriculture Policy

and 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.