AGRICULTURE SECTOR EPP 1 : NATIONAL

DESCRIPTION KEY OUTCOMES OF THE EPP/ KPIs SEAWEED NUCLEUS • Increase production of raw seaweed material from 207,850 mt (2010) to 94,050,000 mt by 2020 (wet The proposed National Seaweed Nucleus is a Private driven weight) (total culturing areas : 18,000 ha). • Increase GNI from RM23,330 (2012) to RM419,944 project which main objective is to develop seaweed farms and by 2020. enhancing seaweed value chain, creating BO (Aqua-tourism, • Generate 13,788 job opportunity (Farm and factory Pelan Zon Industri Akuakultur (ZIA) Daerah workers, management and supporting staff). downstream & Upstream seaweed industry. • Create BO (downstream and upstream processing). • Increase livelihood of local community (poverty Kawasan ZIA Rumpai Laut, Moluska & Sangkar Ikan eradication) (33,183 ha) • Produce and develop high quality seaweed brand. Perairan Bakapit (14,568 ha) The Department of Fisheries has identified four areas Perairan Silam (18,615 ha) in the East Coast of Sabah which has high potential to be District boundary WHAT NEEDS TO BE DONE? developed as commercial scale seaweed farming areas (I.e Corals • Increase training capacity to produce sufficient man Pusat-Pusat Akuakultur Lahad Datu, , and .) power labour skilled. 1. Pusat ternakan ikan dalam sangkar & hatceri • Setup basic infrastructure. (100 ekar) • Produce and branding high quality local dry seaweed for higher or standard global and local market price. 2. Pusat konservasi & penyelidikan biodiversiti The key outcome of the project area: • Introduce Good Aquaculture Practices. perikanan (pulau-pulau) 20 ekar 3. Pusat penyelidikan pembenihan perikanan • Produce Malaysian Seaweed Standard (Piawai Rumpai Laut (1000 ekar) KEY CHALLENGES ) from 207,850 mt (2010) to 94,050,000 mt by 4. Pusat konservasi & penyelidikan biodiversiti • Lack of man power labour skilled (require 520 perikanan (terumbu karang) 631 ha (1560 2020 (wet weight) workers/1000ha) ekar) • Sustainable supply of high quality seedling (seedling • Improve yield from 2.6 m.t/ha to 5.5/m.t/ha by 2020. (dried) with high carrageen content). • Fluctuations of seaweed global and local market • Increase local people income RM6,570,000 by 2020. price. • Meet international quality requirement (EU • Increase GNI from RM23,330 (2012) to RM419,954,000 by standard). Pelan Zon Industri Akuakultur (ZIA) Daerah Kunak 2020 Kawasan Rumpai Laut (3,200 ha) MITIGATION PLAN Perairan Madai (2,000 ha) • Create Business Opportunity (downstream and upstream • Provide basic infrastructure and culturing areas to Perairan Pangi (1,210 ha) processing) attract investor and to skill labour. Corals • To increase training capacity and capability • Aqua tourism • On-going RND for the improvement of local seaweed Kawasan Moluska / Sangkar Ikan (2,175 ha) species and venture in new seaweed varieties. Pulau Bohayan (1,100 ha) • Control price of seaweed by government and • Job opportunity (Farm & factory workers, Management & produce local high quality seaweed brand. Pualu Tabawan (1,075 ha) supporting staff). • Poverty eradication.

National Seaweed Nucleus versus Conventional Method

Pelan Zon Industri Akuakultur (ZIA) Daerah Tawau Pelan Zon Industri Akuakultur (ZIA) Daerah Semporna VS Laut Utara Pulau Bum Bum (1) Laut Utara Tanjung Pantau Pantau (2) Beaufort Reef (3) Proposed Seaweed Area Creach Reef (4) Cust Reef (5) Tubing Reef (6) Tubing Reef (6a) Conventional Seaweed farming National Seaweed Nucleus Pesalat Reef (7) Laut Timur Pulau Bait Reef (8) • Seaweed farming carried out by family members (small scale) • Attract new investors and upgrade • Provide infrastructure (Drying platform, Utara Pulau Bait (9) • Culturing seaweed using long line and raffia string existing seaweed companies to storage…) to increase drying capacity Pulau Pababag (10) • Very low drying seaweed capacity commercial scale and quality Pulau Mata Pahi Reef (11) • Dried seaweed trade through middleman (low selling price) • Group existing and new local seaweed • Apply new and improve technology using farmers and provide training under the Eco-friendly Long Line Technology (EFLT) Pulau Dannawan & Reef (12) investing company (train the trainer which increase quality and production Pulau Silungan (13) method) • Setup seaweed collection centre in each Tanjung Sirongol (14) • Up scaling small farmer to commercial district to monitor seaweed quality and Pulau Timbun Mata (15) scale and replicating to identified site control market price Corals Kawasan Rumpai Laut : 45, 555 Ha (112,568 ekar)

EPP 2 : SABAH AGRO INDUSTRIAL PRECINT (SAIP)

DESCRIPTION

SAIP is a technology precinct that serves as tech) are serious to invest (setting up plant) in an enabler/platform for the development of SAIP. Pop Grapes Enzymes Sdn Bhd and other agro-based industry focusing on food and local companies interested to participate in the specialty crops/natural products, and driven by PLF producing value added products (medicinal technological processing innovation and R&D. enzymes, etc.). 215 acres of land area in , Papar. Kimanis, Papar Phase 3 (2014-15) would see further expansion Development on Phase 2 (2012-13): the Post of CEF & PHHCC and development of Agro Harvest Handling & Collection Centre (PHHCC – Research & Engineering Facility (for training Product Line Facility & Cold Room) & Controlled and R&D activities). Environment Farming (CEF) Project, a JV with BIA and SLDB would plant Chili, Tomato and Currently, SAIP housed the Demo Plot herbal Rock Melon (10 acres). These fresh produce nurseries (UNDP fund) and MOSTI Technofund’s would be processed and delivered to consumer Tea tree plantation (10 ha), nurseries, essential (via PHHCC, capacity 50 tonne/year), stored oil distillation plant (on-going) and Tissue in cold storage or further processed into value culture/Product Development laboratories. added products (PHHCC-PLF). Approved SDC RMK10-RP1 project without Apart from JV BIA/SLDB, foreign investors Dar ceiling. Phase 1 of the earthwork and Admin Seng Agriculture Co. Ltd. Taiwan (high-tech Building Completed under RMK9. Design for planting) and MES Co. Korea (packaging/green Phase 2 completed pending availability of funds.

Key OUTCOMES OF THE EPP/ KPIs WHAT NEEDS TO BE DONE?

• 100 Agro/Technopreneur • Phase 2 Agro Industry Development Centre 1 – Office space , business advisory & production line (Building & Equipment) facility provided to the agro/technopreneur – RM20 million • 2,085 Jobs to be created • Phase 3 Agro Industry Development Centre 2 – Private domestic/foreign investment (Building & Equipment) • Encourage production of high quality agro-based – RM74 million product & services • Development in phases. Based on demand and – Post harvest handling & collection center to supply. process & add value • Capacity building and knowledge improvement for the locals in modern agriculture technology and skills

KEY CHALLENGES MITIGATION PLAN • Physical infrastructure (buildings) • Funding for basic infrastructure, building, initial • Human capital/resource (Limited local talent) operation cost , common facilities and equipment for post harvest and production line. • Integrate education into SAIP. AGRICULTURE SECTOR EPP 3 : TAMAN KEKAL PENGELUARAN MAKANAN (TKPM)

DESCRIPTION TKPM MANDALIP AU (517 HA) TKPM SG. LOKAN (700 HA)

Background Of The Project TKPM • Categorized under EPP 7 [Fruit & Vegetable] Background Of The Project TKPM Sg. Lokan Mandalipau, Papar. • The site is situated 80 km from the • To alienate land permenantly for tropical fruits production. • The site is situated 25 km from Papar Town. District , City. • Overall area = 517 hectares • Overall area = 732.48 hectares • To give opportunity for private sector to be involved in fruits • Acreage developed = 517 hectares (3 Phase) • 1st Phase Develop = 400 hectares production • Gazetted for TKPM = year 2006; GN 78-2006 • 2nd. Phase Develop = 300 hectares • In 2009 listed under the Sabah Development • Gazetted for TKPM = year 2005; GN 345-2005 • To give opportunity for local agropreneur to be involved in food Corridors (SDC). • In 2009 listed under the Sabah Development crops production. • Current status- The final report on Design Corridors (SDC). Plan (Preliminiary Report) done by SABA • Anchor Vendor Concept. • Current Status- The final report on Design Perunding S/B costing RM860,580.00 > SDC Plan (Preliminiary Report) done by PY Konsep • Strengths of the Food crops sector: Perunding costing RM389,120.00 > SDC - Food security - BOT, Import vegetable & fruits higher than export - Food crisis - Geographical location of Sabah closer to Taiwan, Japan, Brunei TKPM SG. KOYAH (80 HA) (EAGA) and Korea Background Of The Project TKPM Sg. Koyah - Sabah still lacking in food crops agropreneur • The site is situated 52 km from the - High demand of tropical fruits overseas , Lahad Datu town • Overall area = 80 hectares • Production: Low vegetable & fruits exported, ( 1,487 mt /RM3.8 • Acreage developed = 80 hectares million (statistic 2008) • Gazetted forTKPM = year 2004; GN 47-2004 • In 2009 listed under the Sabah Development Corridors (SDC). • Distribution : Project focus to east coast Sabah (Div. Sandakan • Current status- The final report on Design Plan and Tawau), to softened the effect of vast expansion of Palm oil (Preliminiary Report) done by SARG Konsult S/B costing RM308,600.00 > SDC plantation (estimated acreage of palm oil plantation is over 93% TKPM, Sg. Lokan, Plot Design cultivated on arable, suitable and fertile agri land (Agri statistics bulletin 2007.

5-HA. Plots 5-HA. Plots 1-HA. Plots 1-HA. Plots 1-HA. Plots Key OUTCOMES OF THE EPP/ KPIs WHAT NEEDS TO BE DONE? (10 NOS.) (10 NOS.) (20 NOS.) (18 NOS.) (8 NOS.) • Increase Fresh Fruit Export : • Need funding for basic infrastructure (road, water Type of Crops A) Papaya- 63,855 mt [355 ha] @ 7 years supply and electricity) need to be construced in B) Jackfruit- 12,237.5 mt [725 ha] @ 5 years order for the TKPM to be implement. • Future opportunity for pineapple, star fruit and • The anchor company should be able to export the Jackfruit Papaya Starfruit banana farm produce directly to the importing country/ 50m x 50m • Job opportunity: 3,184 people [until 2020] client through Sabah Port [Sandakan] – to shorten Sub-station • To Develop new local agropreneur: 66 the travelling time rather than through Port Klang. • Generate Revenue for the State Government through land rental- RM3,538,000 .00 until 2020

100m x 50m KEY CHALLENGES MITIGATION PLAN Sub-station • Illegal squatters • District Officer could issue Eviction Notice to the 1000m x 50m • No basic infrastructure illegal squatter with the assistance from the Land Collection On & Survey Department ,Police , District Surveyor and Pineapple Banana Centre District Council [Enforcement Officer] • To construct access road from Sandakan- Lahad Datu Highway to the TKPM site. • To provide water supply and reservoir [pond] for Pond water collection. Irrigation Channel • To provide power connection [SESB] and standby generator.

EPP 4 : INTEGRATED MARINE FISH CULTURE

DESCRIPTION These are The Current and Identified Areas for Marine Fish Cage Activities KEY OUTCOMES OF THE EPP/ KPIs The proposed Integrated Marine Fish Culture will be located • 1,398 or more jobs opportunities. at Limau Limauan, Kudat. • 504 million hybrid and high grade fish fingerlings. • 47,040 mt of hybrid and high grade, high market price of marine fish for export annually to China, A total 400 ha of land and sea area has been identified and applied Hong Kong and Taiwan. for in 2011. WHAT NEEDS TO BE DONE? • Full government support by providing land and access road to location PITAS The proposed project consist of a hatchery, nurseries, cages for Current Identified grow out, processing plant and live feed production. KEY CHALLENGES Marine Cage Marine Cage Activities Activities • Insufficient supply of fingerlings • Intrusion of local folks The estimated initial project investment will be RM52 million and • Supply of electricity • Access road RM2 million of the total come from government injection. • Supply of treated water KOTAKINABALU • Skilled technician and workers LABUK SUGUT • Parasite and disease occurrence The hatchery is expected to produce 91 million of hybrid and high • Water pollution SANDAKAN • Quality control grade fish fingerlings to various fish cage culture operators in Sabah. MITIGATION PLAN PAPAR • Develop a hatchery with 500 mill fingerlings capacity. KINABATANGAN PULAU The cages is expected to produce 8,400 mt annually of hybrid and • Security system to be in placed BEAUFORT • Provision of water, electricity and access road high grade high market price of marine fish for export to China, • Provision of specific training Hong Kong and Taiwan. LAHAD DATU

The project is also to provide R & D facilities to interested parties to enhance production of high quality marine fish seeds. KUNAK TAWAU The proposed marine fish to be cultured are: Ephinephelus lanceolatus, E. fuscoguttatus, E. polyphekadion, Plectropomus SEMPORNA leopardus, P. maculatus, etc.

Broodstock Holding Cage Limau Limauan, Marudu Bay Marine Fish Hatchery AGRICULTURE SECTOR EPP 5 : SWIFTLET COMMERCIAL CENTRE (SCC)

SABAH SWIFLET CENTRE (SCC)

DESCRIPTION KUDAT PITAS

This project consist of 500 bird houses, 10 collection units, 1 bird nest processing unit and 1 KOTA MARUDU hatchery + nursery + feed production unit. KOTA BELUD

10 private investors will be selected to invest in setting up of 50 bird houses + collection unit each in 10 different location (clusters).

The selected locations are Pitas (2 clusters), Kota Marudu (2 clusters), Kudat (2 clusters), Kota Belud (2 clusters), Tawau (1 cluster)and Lahad Datu (1 cluster). lahad datu

One investor will set up the bird nest processing unit while another investor will set up the hatchery + nursery + feed production unit at Kota Marudu. TAWAU The land required will either be purchased by the investors or utilize private lands based on smart partnership with the land owners.

The bird nests collected from the 10 clusters will be sold to the processing plant after undergoing Key OUTCOMES OF THE EPP/ KPIs (2020) WHAT NEEDS TO BE DONE? grading process at collection point. Processing will • 20 Tonnes of raw bird nest worth about RM100 million • Government through Land and Survey Department should give high • 500 bird houses, 10 collection units, 1 bird nest processing unit and 1 priority to alienate and gazette the required land areas (10-15 acres) . be done in accordance with Good Manufacturing hatchery + nursery + feed production unit. • Private land owners should take this opportunity to establish a smart • Based on the performance of the existing swiftlet farm in Sabah partnership with investors . Practices (GMP). (estimated to be 500 bird houses) , this industry has a high potential for further development to increase bird nest production. Local down stream processing will further provide 7,628 jobs opportunity and The end product will be standardized, analysed, higher return. labelled and branded before exporting. To enable KEY CHALLENGES MITIGATION PLAN the project to proceed smoothly, government has • Time duration for the state government to alienate land for the • Once the areas have been identified the investor should be given TOL investors to establish bird cluster. permit to occupy and develop the said land. to provide infrastructures such as road, water and • e.g: No access road , electricity and water supply available to be • Government should provide infrastructures once the land has been connected to the proposed site. identified (be it government land or private land) electricity supplies through its agencies (JKR, • Once smart partnership has been established between the investors and land owners, investors should start development works Jabatan Air, SESB). immediately.

EPP 6 : HIGH FINNED GROUPER & BARRAMUNDI

DESCRIPTION

High Finned Grouper Barramundi • Very sought after species by overseas consumer • Traditionally consumed by consumers local and overseas • Can fetch up to RM240 / kilo • Can fetch up to RM20 / kilo • Exported by Air Cargo to Hong Kong & Mainland China • Exported by Air Cargo to Australia, China, Singapore & Peninsular Malaysia • New market potential to Singapore, Taiwan, Korea, • New market potential to New Zealand & Middle East Japan & Australia • Strong demand from local O&G industry for offshore staff meals

Key Performance Index: Key OUTCOMES OF THE EPP/ KPIs • 67,000 tonnes annual output by 2020 • Pond & sea cluster is stocked with fish by Dec 2012 Liner (water proof) Pond - Barramundi • Achieve first cycle of production output on Dec 2013 • GNI of RM994.5 million by 2020 • Construction of processing plant commence on March • 200 ponds of 1 acres each 2012 • Construction of pond to commence on June 2012 • Geomembrane with 15 years lifespan • Export of 1st container of fish by Dec 2013 • Kg Sitompok in Kuala Penyu WHAT NEEDS TO BE DONE? • No pollution to underground water • Land allocation (TOL) to be issued by June 2012 • Fish to be stocked by Dec 2012 • Complete the acquisition of land for processing plant by March 2012 • EIA to be completed by May 2012 to enable pond construction to commence. • Farm & processing plant to obtain SPLAM certification KEY CHALLENGES • Basic infrastructures at the grow out farm – access road, Fish Cage Cluster – High Finner Grouper electricity & piped water • Shortage of skilled manpower and experts to work on • 100 clusters in total hatchery, nursery & grow out farm KUALA PENYU • Financial support from institutions • Kimanis Bay • Delay in delivery of quality fish fries from hatchery in Taiwan & Indonesia. The two countries are renowned to product top quality fish fries to support the aquaculture industry. MITIGATION PLAN • Engage Land & Survey to enable road-reserve to be established as soon as possible. • Engage contractors to build temporary access road to enable site construction to commence. • Engage UMS and other training institute to facilitate the employment of local graduates Hatchery & Nursery • Engage Agro Bank & SME Bank to facilitate syndicated loan assistnce • 5 acres of land • Booking of fish fries to take place upon 50% of construction status. Attempt to source from secondary • Kg Binsuluk market like & Australia. AGRICULTURE SECTOR EPP 7 : INTEGRATED SHRIMP AQUACULTURE IN PINTASAN & TELAGA

DESCRIPTION

Pintasan - 200 Acre (Ph 1) Telaga - 1,000 Acre (Ph 1) To increase the Export of Shrimps in Malaysia from the existing approx. 15,000 tons/year to 45,000 Tons/Year and leading Sabah to become one of the Key producers of farmed Shrimp in Malaysia.

To improve local house-hold income through Aquaculture-based economic development.

To develop a total of 2,400 acres of vacant land for Shrimps Farming & Procession Plant.

To eradicate poverty and improve income of 500 Hardcore Poverty household.

To create 3,600 new jobs opportunity.

To accelerate the regional economic growth and bridge the urban-rural disparity in development and in terms of accessibility and services.

To increase foreign earning of approx. US$ 200 million/year (Export to EU, USA, Japan, Korea, Taiwan & Hong Kong)

Phase 1: Development of prawn farming + Peeling House and modern Processing Plant for 1,200 acres

Phase 2: Development of prawn farming + Peeling House and modern Processing Plant for 1,200 acres

Key outcomes of the EPP / KPIs • To capture the entire value chain to create competitive advantage over other major producing countries • To reduce poverty Gap in Sabah ( 95% in Pitas & KB District) • To create jobs opportunity and social economic benefit as well as up Skilled workforce in the aquaculture industry – 3,600 Jobs Job creation for Managerial, supervisory, white collar and Blue collar (Average earning per Worker = RM1,150/month) • To increase foreign earning (approx. US$ 300millionx/ year) • Better allocation of resources and use of un- developed Land (a total of 2,400 acres will be developed) What needs to be done? • To ensure adequate Power Supply (Pintasan -1.5 MW, Telega- 5.5 MW) • To ensure adequate Water supply (Telaga - 2MLD) • To provide Regular water test (QC Lab) Key Challenges • Insufficient Power Supply connecting to the area (Telaga & Pintasan) • Insufficient Water Supply (Telaga) • Threat of Parasite and disease • Threat of Water pollution • Unskilled & inexperienced work force Mitigation Plan • Insufficient Power Supply connecting to the area (Telaga & Pintasan) • Insufficient Water Supply (Telaga) • Threat of Parasite and disease • Threat of Water pollution • Unskilled & inexperienced work force AGRICULTURE SECTOR EPP 8 : SEA CUCUMBER AND TIGER GROUPER COMBINE CULTURE

Hatchery & Nursery

Land Based Grow-Out Farm

Integrated Processing / Export Plant

R&D Facility

Location: Kuala Penyu, , Matunggung, Kota Belud, Taritipan, Kanibongan

DESCRIPTION

Hatchery & Nursery Kg Binsuluk (5 acres)

Grow Out Farms (300 acres) • Kuala Penyu & Kg Binsuluk • Kg Rumbiso, Matunggung Key outcomes of the EPP / KPIs • Kg Rosoh, Kota Marudu • Fish production 12,600 tonnes & Sea Cucumber • Kuala Abai, Kota Belud production 2,304 tonnes. • Achieve consistent survival rate of over 70% Integrated Processing • Create a minimum 930 job opportunities Plant (8 acres) • Improve skill level of local workers – especially in • Sabah Agro-Industrial Preinct, handling and husbandry • Maintain a minimum 50% of total output for local Kimanis DESCRIPTION consumption • Achieve local and international quality certification – R&D Facility ASC, SPLAM & others • SAIP Technology Park – Facilities Hatchery Technology • Deep freezer (-48°C) What needs to be done? • KKIP Technology Park – • Cold Storage (-18°C) • Allocation of land at proposed project site Processing Research • Support of government / private financial institution Capacity • Continuous training of local workers to improve • Deep freezer 10 tons per day handling and husbandry skills • Storage 400 tons • Improvement in basic infrastructure (roads, piped water, electricity) DESCRIPTION Facilities Key Challenges End Product • Air drying facility • Small scaled production & located far from • Frozen & Cleaned Sea • Capacity: 500kg per cycle processing facility Cucumber • Drying time: 8 hours • Low production volumes & low quality produce • Dried & Cleaned Sea Cucumber • Availability / formulation of sustainable fish feed • Live Tiger Grouper export via Sea Ranching with Local • Maintain water quality at major rivers / coastal areas Community • Improved air connectivity to major consuming air cargo market (in terms of loads & frequency) Aim: Alleviate rural poverty Job opportunity At Nursery & • Distribute 1,500 sea cucumber, Mitigation Plan Grow-Out Farms 60% survival rate • Engage UMS / feed mills to formulate sustainable • Blue Collar: 350 • Ranching output 900 sea feed & local food processors / slaughter houses for • White Collar: 100 cucumber per year (1 kg each) purchase their meat refuse • Contract buyback price • Laboratory to test water quality before discharging At Processing Plant & RM40/kg into grow-out ponds • Upgrade of air-cargo facility to utilise live fish export Technology Center • Annual alternative income containers – enable to carry higher volume (500kg • Blue Collar: 350 RM36,000 (RM3,000 per vs 5kg) • White Collar: 130 month3 participants 1st year • Setup in-house grow out farms