Dompok: M'sian exporters need to know emerging trend for legal timber

 

KUALA LUMPUR: With the rising demand in major markets for legal timber, Malaysian timber products exporters have to be mindful of this development and take appropriate steps to comply with new rules, said Plantation Industries and Commodities Minister Tan Sri Bernard Dompok.

He said the emerging trend in the developed markets was for more discerning and environment conscious timber products made from legally harvested timber.

For example, the European Union, United States and Australia have either put in place legislation to compel trade in legal timber or they are in the midst of formulating such regulations.

The government, he said, would continue to inform the local timber industry regularly on the latest development in timber trade rules to ensure that the local timber-based business community was not disadvantaged.

Dompok made these remarks at the Malaysian Timber Industry Forum Association (TIF)’s first anniversary dinner here recently.

His speech was delivered, on his behalf, by his deputy Datuk Hamzah Zainuddin.

Six timber industry-related organisations had come together to form TIF, the umbrella body that represents and promotes the interest of timber industries within peninsular Malaysia at the national, regional and international levels.

TIF will also seek to promote, support or oppose legislation affecting the timber industries in Peninsular Malaysia at the state or federal government levels, liaise with any official (government or otherwise) department, organisation or person for the association’s benefit, and provide a forum for consultation, cooperation and coordination among members.

The founding members of TIF are the Association of Malaysian Bumiputera Timber & Furniture Entrepreneurs, Malaysian Furniture Industry Council, Malaysian Wood Industries Association, Malaysian Panel-Products Manufacturers’ Association, Malaysian Wood Moulding and Joinery Council and the Timber Exporters’ Association of Malaysia.

TIF is headed by Datuk Sheikh Othman Rahman with George Tan as Secretary General.

A TIF spokesman said the idea to form TIF was mooted in 1999 by Tunku Osman Ahmad, then Chairman of the Malaysian Timber Council and also President of Malaysian Wood Industries Association, to have regular meetings informally among various sectors of the timber industry in Peninsular Malaysia to discuss and overcome issues faced by them.

Dompok also said Malaysia was now actively engaged with the EU towards finalising a Voluntary Partnership Agreement under the Malaysia-EU Forest Law Enforcement, Governance and Trade.

“This is in anticipation of the implementation of the due diligence process for timber products imported into the EU beginning March 1, 2013,” he said.

In the case of Australia, its government is in the midst of enacting the Illegal Logging Prohibition Bill 2011 aimed at combating trade in illegal timber.

Malaysia had made two submissions, and the latest one was to the Trade Sub-Committee of the Australian Parliamentary Joint Standing Committee on Foreign Affairs, Defence and Trade earlier this month.

Dompok said Malaysia conveyed its concerns over the implication of the bill and provided inputs to Australian members of parliament and senators to ensure that they were fully informed of Malaysia’s concerns and were mindful of the various potential consequences which may arise with the implementation of the bill.

He said the government wanted to ensure that the new regulation in Australia would be fair and pragmatic, and did not over-burden timber product exporters, and also did not incur additional cost.

Source: New Sabah Times Online

Read more : http://www.newsabahtimes.com.my/nstweb/fullstory/59167

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Sabah entrepreneurs urged to produce local products for franchising

KOTA KINABALU: Entrepreneurs in Sabah have been urged to come up with their own food-based products which can be franchised throughout the country via the Community Franchise Programme.

In making this call, the Minister of Domestic Trade, Cooperatives and Consumerism Datuk Seri Ismail Sabri Yaakob said the community franchise business had potential for involvement by the low and middle income groups, as well as those seeking a side income.

“In Sabah, the micro (Franchise Package) is not yet available as we have just introduced it and we hope that after this, it will expand in the state.

“What I want is for them (entrepreneurs) to on their own develop local products to be franchised at home first before doing so throughout the country.

“This is because the franchise brought in from the peninsula does not sometimes benefit the franchisor…curtailing its expansion,” he added.

Ismail Sabri said this when asked to comment on the level of participation by entrepreneurs or traders in Sabah in the Community Franchise Programme after its launch at Taman Putra Jaya in Telipok near here yesterday.

Also present was Sabah Deputy Chief Minister Datuk Seri Yahya Hussin citing the ‘burger and soup Sabah’ as an example. He said products such as these could be introduced for the purpose of this business.

He said the government had allocated RM8 million for the Small Franchise Loans Scheme (SPKF) to assist entrepreneurs enter the franchise business on a micro basis.

Ismail Sabri said until May 14 this year, there were 144 applications approved under the SPKF with approved allocations of about RM3.2 million.

In this regard, he asked entrepreneurs in the state to grab business opportunities by applying for the easy loans without deposits of up to RM50,000 with an annual three per cent interest and payable within five years.

He said from October 9 last year to May 14, 2012, nine community franchise programmes had been held with an investment potential reaching RM66.3 million with about 619 franchisors. — Bernama

Source: Borneo Post Online
Read more: http://www.theborneopost.com/2012/05/19/sabah-entrepreneurs-urged-to-produce-local-products-for-franchising/#ixzz1wETdeNQ4

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SME Corp Approves RM110.7 Million In Loans This Year To Sabah SMEs

TAWAU: SME Corporation Malaysia (SME Corp) has approved grants and loans totalling RM110.7 million as of April this year to help micro, small and medium entrepreneurs in Sabah, said state Assistant Finance Minister Datuk Tawfiq Abu Bakar Titingan.

Tawfiq said the amount was approved to 580 applicants out of the 753 applications received by SME Corp.

“In Sabah there are about 25,000 small-and-medium enterprises (SMEs), and of these 19,000 are micro enterprises with five or fewer employees and about 4,900 small firms, with the remaining 1,000 in the medium category,” he told reporters after launching a gathering of micro, small and medium entrepreneurs together with a seminar on halal certification and workshop on packaging and branding here yesterday.

The state government as well as federal agencies like SME Corp are focusing their efforts on helping micro enterprises to grow, he said, citing the Bumiputera Enterprise Enhancement Programme (BEEP) and assistance with getting halal and ISO certification.

Tawfiq said the government was also trying to raise SMEs’ contribution to gross domestic product from 33 per cent in 2011 to 40 per cent by 2020. He also urged SME entrepreneurs not to misuse the loans from the government and to repay their loans, as well as to make full use of the facilities provided by state government agencies such as the Sabah Economic Development Corporation (SEDC), Sawit Kinabalu and Sabah Softwood Bhd. — Bernama

Source: Borneo Post Online

Read more: http://www.theborneopost.com/2012/05/22/sme-corp-approves-rm110-7-million-in-loans-this-year-to-sabah-smes/#ixzz1wESglAdM

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RM500 million Federal grant to cover 10pc project costs

BONGAWAN: The Federal Government has allocated RM500 million as a grant to cover 10 per cent of the total cost of on-going projects worth about RM5 billion in Sabah.

The Public Private Partnership Unit (UKAS) under the Prime Minister's Department gave the grant to help local entrepreneurs particularly contractors completing basic infrastructures in each project.

Chief Minister Datuk Seri Musa Aman, who announced this, said the RM500 million comes from the facilitation funds of UKAS to lessen the contractors' burden in providing basic amenities and other necessary infrastructures to the projects.

He said such move is also aimed at encouraging the private sector to invest in these projects that include building resorts, new townships, geothermal plant in Tawau, Sabah International Convention Centre in the State Capital and other development in technology and industrial aspects.

"UKAS has identified all these vast projects and is giving 10 per cent of the total construction cost of the projects as a catalyst to the nation's economic growth, especially Sabah.

"This 10 per cent grant is not a loan," he said, urging local entrepreneurs to grab this assistance rendered by the government for them.

Musa, who is also Finance Minister, said this a press conference after launching the 4th Sabah Foundation with the People Programme for the Interior South Zone at SMK Bongawan II here on Saturday.

The programme aims to disseminate information on development plans carried out by the government that have been implemented and benefited the people, and also to foster ties between the leaders and the local communities here with the State and Federal government departments and agencies.

About 8,000 people attended the event including Foreign Minister cum Kimanis MP Datuk Seri Anifah Aman, Local Government and Housing Minister Datuk Hajiji Mohd Noor, his assistant minister Datuk Ghulam Haidar Khan Bahadar, State Legislative Assembly Deputy Speaker Datuk Johnny Mositun, Community Development and Consumer Affairs Minister Datuk Azizah Mohd Dun, Sabah Foundation Director Tan Sri Datu Khalil Datu Jamalul, Bongawan assemblyman Datuk Karim Bujang, Membakut assemblyman Datuk Mohd Arifin Mohd Arif, Sipitang MP Datuk Sapawi Ahmad, Lumadan assemblyman Kamarlin Ombi, Kuala Penyu assemblyman John Teo, Papar District Officer Iman Ali and other officials.

"For instance, on a RM100 million project, UKAS will give 10 per cent which is equivalent to RM10 million as facilitation fund for the contractors to construct infrastructures like roads, lamp post, water, electric and drainage system among others.

"By doing so, the contractors would not feel too burdened to complete the projects as they are being assisted through the grant of 10 per cent," said Musa.

He said the RM5 billion worth of projects is proof of the BN's commitment and concern for the development needs of the people.

Meanwhile, Musa said the Bongawan and Membakut State seats would be combined to create a full district status.

"Both seats have the criteria to fulfil the requirement to be upgraded as a full district due to the request of the people and rapid development here.

"We will discuss which area is to provide the centre of local administration that will accommodate the needs of the people.

"By having a full district, the Bongawan people do not have to go to Papar to do their official errands with the respective local authorities and those in Membakut do not have to go to Beaufort," Musa said.

Source: Daily Express Online

              http://www.dailyexpress.com.my/news.cfm?NewsID=81637

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Sabah's oil palm sector expected to grow bigger

LABUAN: Sabah’s oil palm industry expected to grow even bigger with eastern Sabah identified as being an extremely good location for oil palm, particularly in Tawau, Lahad Datu and Sandakan.

“This area is where most plantations and smallholders are located, with two major downstream projects providing increasingly sophisticated downstream services for the sector,” said Jerel Soo, managing director of Fireworks Event (M) Sdn Bhd, an event management consulting group, specialising in palm oil exhibition.

He said palm oil, being one of the federal government’s NKEA (National Key Economic Area), meant that this sector would receive special attention via incentives and programmes in the years ahead.

“Therefore, we are in the move to help organise the largest Palm Oil Exhibition (Palmex) 2012 to assist in bringing in more business to the local players,” he said.

Soo confirmed a total of 130 booths were taken up, of which more than 80 comprised overseas exhibitors. 

The Singapore Government has subsidised over 10 companies to help promote downstream technologies in palm oil industries.

“The NKEA covers everything from growing trees to sophisticated downstream industries such as oleochemicals, alongside increasing the number of applications for what was once seen as waste products like empty fruit bunches.

“Expanding the sector further would mean tackling some major challenges, however. Issues such as the scarcity of land in Sabah, challenges in seeking skilled workers, lack of mechanisation and so forth were hampering the growth of this sector, and this need to be given special attention.

“As far as we are concerned, to combat this, several key initiatives have been put in place under the NKEA via entry point projects,” he said.

“It is noted and was made to understand that the government has an obligatory replanting scheme under way. Through this scheme, all trees over 25 years of age must be replaced with younger ones.

“The MPOB would provide financial support for smallholders to do this, with the new trees to be of new strains, further boosting yields. Some RM1 billion has been earmarked for this purpose,” he said.

All in all, Sabah’s oil palm industry is poised for major new developments that are set to impact industry players, from growers to exporters.

According to the Malaysian Palm Oil Board (MPOB), in 2009, Sabah had the largest area under oil palm cultivation than any state, at 1.36 million hectares out of the national total of 4.69 million hectares (ha).

Yields, too, were generally stronger at an average of 4.3 tonnes per ha in 2010 – the highest of any state in the federation.

Meanwhile, Soo said, downstream processes was another segment under palm oil which was receiving great focus.

“It is learnt, however, the importance of the palm oil industry to Sabah cannot be merely measured by the direct revenue stream it generates as it has much more wide-reaching and important contributions to the state,” he said.

“The palm oil industry will have to take a leading role because of the linkages it has with other sectors – from energy to construction and manufacturing – and of course, due to the sheer size of the industry compared with the others in Sabah.”

The Palm Oil Industry Cluster of Sawit Kinabalu Bhd (POIC) Lahad Datu was also promoting industries that would use the large volume of biomass generated from Sabah’s oil palm plantations.

One particular independent power producer has taken the initiative towards making POIC more environmental friendly by signing up to generate power and steam on site using biomass.

“Investors such as these thus solve two problems for POICs: providing a reliable source of power and making use of the many forms of waste from palm oil processing.”

As a result, Sabah’s POICs should therefore be able to look forward to varied investors knocking on their doors in years to come, in addition to adding value to the palm oil industry in their own backyards.

Source: New Sabah Times Online

             http://www.newsabahtimes.com.my/nstweb/fullstory/59058 

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Aggressive promotion of downstream value-adding investments to expand oil palm industry

SANDAKAN: The State Government is trying to expand and deepen the oil palm industry by aggressively promoting downstream value-adding investments aimed at creating new wealth, new businesses and new jobs.

“The key to bringing about all this is the promotion and development of a whole range of small and medium enterprises,” State Industrial Development Minister Datuk Raymond Tan said at the opening of the Conference on Outlook in Palm Oil Technology for SMEs at the Sabah Hotel ballroom yesterday.

Datuk Raymond Tan

In the context of ensuring oil palm becoming a key contributor to Sabah’s development and in a sustained and sustainable way, the providers of resources are needed to identify with the objectives of the Government for the State, the businesses and the people move forward in tandem, Tan who is also POIC Sdn Bhd chairman, said.

“This is really Malaysia’s Economic Transformation Programme in a nutshell. The ETP includes a range of national key economic areas, or NKEAs, one of which cover oil palm. This NKEA has great significance to Sabah because we produce about 34 per cent of the palm oil in the country,” Tan added.

The Government targets to triple the income from the oil palm sector by 2020 through replanting with higher yield oil palm trees, mechanization to improve plantation efficiency, improving oil extraction rate, production of high-value oleo products and to optimize the utilization of oil palm biomass, he continued.

Sabah’s comparative advantages are, amongst others, its availability of raw materials to support a whole range of SMEs. We are looking at investment in oleo chemical plant that will spawn a myriad of SMEs to produce anything from soap to candles, personal care items to pharmaceutical products, Tan said.

“We are looking at SMEs using oil palm biomass to make pellets for fuel, palm kernel cake and palm fronds into animal feed, mill gas into energy and empty fruit bunches into organic fertilizers,” the Minister said.

The Minister noted that the impact of the oil palm was surely and steadily spreading to all of Sabah. Thus the Government is working on encouraging young people to take ownership of the industry, to recognize themselves as stakeholders, not bystanders.

“The development of oil palm-related SMEs will give rise to demand for skilled manpower locally. As it expands, we need local workers for the entire value chain of the industry. Given palm oil’s growing importance among the 12 types of vegetable oils in demand around the world, the evolving of a Malaysian work force with expert knowledge of the industry simply translates into global employment prospects and prosperity,” Tan added.

Also present were POIC Sabah Sdn Bhd CEO Datuk Dr Pang Teck Wai, Department of Industrial Development and Research Director Patrick Tan, EMPA chairman Haji Othman Walat and MPOA chairman Muhammad Tarmizi Taufek.

The guests speakers at the one day programme were Dr Bas Melssen (Agensi Inovasi Malaysia), Professor Luuk van der Wielen from the Netherlands, Gabriele Bacchini, Oleochemical Product Manager, Desmet Ballestra, Dr Loh Yueh Feng (MTIB), Mohd Ramadhan Khalid (MPOB) and Julia Majail (RSPO).

Source: New Sabah Times Online

             http://www.newsabahtimes.com.my/nstweb/fullstory/59058

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POICs draw strong investor interest – CM

SANDAKAN: The state government is fully aware of the need to optimize resources through value-added downstream operations.

Musa visiting one of the booths at Palmex 2012

Chief Minister Datuk Seri Panglima Musa Haji Aman said the setting up of the palm oil industrial clusters (POICs) in Lahad Datu and Sandakan was testimony of the government’s commitment in encouraging the establishment of businesses that added value to raw products like Crude Palm Oil (CPO).

“Much wealth can be generated by adding value to raw products, and now we are seeing growing interest among investors to set up base at the two palm oil industrial clusters.

“The Lahad Datu palm oil industrial cluster alone has attracted 40 investors, making it an industrial park with the largest concentration of investors in palm oil, with a combined investment value of about RM5 billion.

“The federal government has also recently announced an allocation of RM490 million for the development of a container port in the Lahad Datu palm oil industrial cluster that will allow for reliable and better shipping of palm oil products and will help further boost economic growth in Lahad Datu,” he said at the opening ceremony of Palmex 2012 Technology Exhibition in Sandakan at Sandakan Community Hall, yesterday.

Read more: http://www.theborneopost.com/2012/05/25/poics-draw-strong-investor-interest-cm/#ixzz1vrSpMBUo

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RM1 billion capex allocated for Lahad Datu LNG terminal by Petronas Gas

KUALA LUMPUR: Petronas Gas Bhd (PGB) has allocated about RM1 billion in capital expenditure for its liquefied natural gas (LNG) regasification terminal in Lahad Datu, Sabah.

“We are now undergoing the plant and enduring design for the Lahad Datu regasification terminal and we target to complete the facilities and supply the gas to the power plant in Lahad Datu in 2015,” chairman Datuk Anuar Ahmad told reporters after the company’s annual general meeting here yesterday.

He said the company will tender out the first package for the 10 facilities in the Lahad Datu regasification terminal very soon and expects to award the contracts in September.

“The rest of the facilities, we expect to tender out early next year,” he added.

On the Kimanis power plant, also in Sabah, Anuar said the first 100 megawatts (MW) of electricity is expected to supply to the state’s main power grid by December next year with the remaining 200MW to be delivered by April 2014.

“We expect the Kimanis power plant to contribute an additional five per cent per annum to our earnings upon completion,” he added.

The company also expects 10 per cent revenue per annum from the Melaka LNG regasification terminal when it is fully utilised by the end of next year.

“The plant is expected to start commercial operations in September, producing up to 3.8 million tonnes annually,” Anuar said, adding the facility will allow new players, through its Third Party Access system, to import LNG and serve the domestic gas market.

“In anticipation of third party access, the company published the PGB Network Code in December 2011.

“The code will govern the use of the terminal and the pipeline network to ensure discipline and fairness amongst the users and that customers are well-served,” he added.

On its Pengerang regasification terminal in Johor, he said the plant is in the final stage of design.

“We have completed the conceptual design and have now moved to the second stage, the basic design stage. Once that design is done, then we go on to tender for the contract itself,” he added.

Taken from: http://www.newsabahtimes.com.my/nstweb/fullstory/58762

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SBCC to visit Philippines in mid-June

Roselan Johar Mohamed

 KOTA KINABALU: The Sabah Bumiputra Chamber of Commerce (SBCC) is organising a trade visit to the Philippines next month with a view to holding further discussions with the proponents of a high-yielding hybrid rice variety.

In disclosing this, chairman of BIMP-EAGA Malaysia Business Council Roselan Johar Mohamed said the trip would clearly explain the system of planting and highlight the bottom line.

“Anybody who is interested may register their name with the chamber (at tel: 088 486551) and travel at their own expenses.

“If the numbers are right, we hope the Sabah government can allocate a further 121.5 hectares (300 acres) of suitable land for this first pilot project, and the business council will find the private sector investors for this purpose,” he told Bernama here yesterday.

Roselan, who is also SBCC treasurer, said the permanent secretary of the State Ministry of Agriculture and Food Industries Datuk Ujang Sulani is the head of the Malaysian delegation.

He said at the recently held natural resources and development cluster meeting of the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) in Balikpapan, Indonesia, a Philippine delegate highlighted the discovery of a high-yielding hybrid rice variety that can produce five tonnes per acre over a planting season of four months until harvesting.

Roselan said that this variety was discovered in 2002, and subsequently commercialised the same year in the Philippines. It has also been adopted for commercialisation in Indonesia, Vietnam, Bangladesh and recently in Myanmar and Cambodia.

He said it is very fortunate that the Sabah Ministry of Agriculture and Food Industries has adopted this rice variety, although details are very sketchy.

“It is hoped that after further deliberation in this BIMP-EAGA meeting, more Malaysian farms can readily adopt this hybrid rice for commercial planting,” he said.

He said hybrid rice production technology from SL Agritech Corporation was adopted and included in the Implementation Blueprint of the BIMP-EAGA food basket strategy designed to attain food sufficiency in the region.

The company is ready to provide the production technology for both seed production and commercial cultivation for BIMP-EAGA member countries, he said.

“They will even provide technical assistance during planting, and if required can outsource further manpower for the physical planting,” he added.

Roselan said the Brunei government plans to test grow the variety on about 200 hectares of irrigated land, adding he hopes the private sector in Sabah could also take up the challenge in view of the many hectares of idle paddy land in the state.

Taken from: http://www.newsabahtimes.com.my/nstweb/category/Business

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Sabah, S'wak favourable for investment due to land, infrastructure, energy

 KOTA KINABALU: The availability of land and improved infrastructure as well as an abundance of cheap energy has made Sabah and Sarawak favourable for investment.

Global defence, aerospace and security company, BAE Systems’ Vice President for Malaysia and Indonesia, Mark Burgess said all these factors have created an industrial ecosystem which was drawing foreign companies to seek investment and education opportunities in this part of the country.

“East Malaysia is very dynamic and ambitious and we can allow ourselves to think in the same way.

“We have high aspirations for this east Malaysian market because we can use this market to work with the rest of the region,” he told Bernama when met here yesterday.

Burgess is currently on a three-day visit to Sabah, Sarawak and Labuan to explore industrial and education opportunities the company could venture into.

According to Burgess, among the company’s focus in this part of Malaysia will be to work on empowering small and medium enterprises (SMEs) with the technology and know-how that BAE Systems could offer.

“What we’ve added to our industrial approach in Malaysia is that we are now more engaged with the SME community because there are some real capabilities out there, capabilities that we can make use of or the technology and know-how that we have that the SMEs can make use of,” he explained.

In the company’s experience in other countries where it also operates such as in the UK, US, India, Australia and Saudi Arabia, he said most SMEs required assistance in project management and accessing the global market, despite possessing certain strengths.

Burgess said BAE Systems had a long list of projects to discuss with the relevant authorities and explore the appropriate companies to work with.

“Some of the work we want to look into is to get some of the Malaysian industries involved in our global supply chain for requirements all over the world,” he added.

Burgess said Malaysia has been one of its most successful markets in Asia for over 20 years.

“But most of that can be attributed to the very strong and enduring ties between the UK and Malaysia in terms of strong defence relationship,” he said.

BAE Systems has supplied various naval vessels, aircrafts and vehicles currently in service with the Malaysian Armed Forces.

With a joint venture with Boustead Heavy Industry Corporation already in existence in Sabah in providing a maintenance facility for naval weapons, Burgess said BAE Systems was optimistic on broadening its industrial reach to this part of Malaysia.

He also said Malaysia was already in a strategic location within the South East Asian region, but has become increasingly strategic, being a crossroad between the Indian subcontinent, north and south Asia as well as Australasia.

Taken from: http://www.newsabahtimes.com.my/nstweb/fullstory/58801

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SME Bank to increase branches in Sabah

 

In its effort to the efforts to develop the state’s economic growth and providing  guidance, SME Bank plans to  expand its services and activities in the state by add more branches in Sabah apart from its existing branches in Kota Kinabalu, Likas, Kudat, Ranau and Tawau.

According to SME Bank  managing director Datuk Mohd Radzif Mohd Yunus, currently the expansion is in its  planning phase to add branches including in Sandakan as the centre for (economic) growth and  evaluating a few places in Sabah .

SME Bank is giving more focus in Sabah including Sandakan as proposed by Sabah Assistant Finance Minister. Datuk Tawfiq Abu Bakar he told reporters at the launch of the SME Bank Entrepreneur Carnival, “Jelajah Niaga” by Tawfiq at Suria Sabah Shopping Mall.

Read more: http://www.newsabahtimes.com.my/nstweb/fullstory/58908

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IN THE PIPELINE: New agro-based schemes at Kota Marudu to offer more than 1,000 job

Deputy Chief Minister Tan Sri Joseph Pairin Kitingan (foreground) and Kota Marudu member of parliament Datuk Dr Maximus Ongkili (behind Pairin) being greeted by the people during the Kota Marudu Pesta Kaamatan or Harvest Festival on Sunday.

KOTA MARUDU: ONCE a backwater district with hardly any commercial centres, the Kota Marudu district has seen much progress in recent years.

Basic amenities such as roads, electricity, water, housing and schools have been provided to many of the villages here with little sign of the development slowing down.

Kota Marudu MP Datuk Dr Maximus Ongkili, however, said there were still more areas that needed attention from the Barisan Nasional government and it was imperative for the people to remain united.

He said this during the launch of the district-level Pesta Kaamatan or Harvest Festival by Deputy Chief Minister Tan Sri Joseph Pairin Kitingan over the weekend.

"The district has been earmarked for many projects related to agriculture, aquaculture and agro-based industries which look set to bring more development," said Ongkili.

Ongkili, who is also the science, technology and innovation minister, said the latest programmes included prawn breeding which had been identified as an Entry Point Project under the National Key Economic Areas for Kota Marudu and Pitas, while a project for induced spawning of sea cucumber was also being implemented.

A private company had also shown interest in rearing oysters at the Marudu Bay which has been tested and proven as conducive for this activity.

"Once it takes off, this project can provide 1,000 jobs for locals including fishermen."

Read more: Kota Marudu to see more projects - General - New Straits Times http://www.nst.com.my/nation/general/kota-marudu-to-see-more-projects-1.86393#ixzz1vYo9JxQ7

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Creating a cordial and harmonious condition for foreign investors: All Hands On Deck!

Datuk Seri Musa Aman taking photo with the delegates from ACCCIM and SUCCC.

All chambers of commerce plays a vital role in creating a cordial and harmonious environment is created with all chambers of commerce including the Chinese Chamber of Commerce and Industry in the state.

Chief Minister Datuk Seri Musa Aman said such good relations would ensure a conducive investment climate in the state, thereby enabling to attract more investments and assist in economic growth.

He said many foreign investors are interested to invest in Sabah because of its political stability and conducive investment climate as well as good environmental policy.

Investors are amazed at how well we administer the state and because of that foreign investors have chosen to invest in the state.

This point was emphasis by the Chief Minister during a meeting with leaders of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) led by its President, Tan Sri William Cheng, at the official residence at Sri Gaya.

Citing the decision by Dole Food Co, the world''s largest producer of fresh fruits and vegetables based in the United States (US), to invest more than RM1 billion in Sabah, Musa, who is also Sabah finance minister, said the huge investments would help generate the state''s economy while also creating job opportunities for local residents.

Apart from that, he said in March this year, Darden, a Fortune 500 company from the US, has also announced it will invest some RM2 billion to develop a red lobster farm off the east coast of Sabah.

Musa said the meeting was a good effort to further strengthen the understanding and cooperation between the state government and chambers of commerce.

This meeting too is a way to understand the needs of these chambers of commerce: The Common denominator expressed by all are stable political environment so that businesses can carry be carry out without any interruption.

Referring to the social contributions of the Chinese Chamber of Commerce and Industry in the state, such as (helping the Chinese schools and temples), the Chief minister applauded such practices as it would be nurtured for mutual benefits.

Musa believed through such visits, all leaders of Chinese businesses in the country will be able to exchange views and ideas on how to progress and succeed.

With such platform, matters of how to improve and expand businesses throughout Malaysia can be discussed. This is to make such vast opportunities be made available to all including the Chinese, Malays, Indians and Bumiputeras in the state.

More importantly, the cooperation between the chambers of commerce and Industry in the state with the Barisan Nasional government. Besides that it is vital to create a good understanding and communication between the state and business chambers so as to be able to understand one another.

The government has always given its support to the Chinese Chamber of Commerce and other business chambers in order to create a conducive condition for foreign investors to invest in the country especially in Sabah.

Read more: Sabah Govt Committed to Ensure Conducive Investment Climate - Bernama

http://my.news.yahoo.com/sabah-govt-committed-ensure-conducive-investment-climate-091036700.html

Photo Credit to Borneo Post online.

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SABAH PLANS TO OPEN PPRT PLANTATION IN UPPER INTERIOR DIVISION

 PPRT House Examples.

KOTA KINABALU, May 15 (Bernama) -- The Sabah government is studying the possibility of opening a Hardcore Poor Development Programme (PPRT) plantation in the Upper Interior Division, said Chief Minister Datuk Seri Musa Aman.

He said this would enable more hardcore poor and poor households to benefit from the project like the participants of PPRT plantations in Kalabakan, Tawau and Tongod.

A total of 1,167 participants of PPRT plantations in Kalabakan and Tongod are getting a dividend of RM400 a month, he told reporters after chairing the Prosperity Development and Poverty Eradication Scheme''s steering committee meeting here today.

The plantations were developed through joint ventures with Sawit Kinabalu Bhd.

Musa said the state government was also planning to increase the number of Prosperity Mini Estates from 44 units to 50 in the 10th Malaysia Plan. He said the Malaysian Fisheries Development Authority had given out the cost of living allowance of RM200 a month to 11,325 fishermen in Sabah until April 30.

-- BERNAMA

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Sabah set to be oil palm biomass devt centre

Datuk Dr Pang Teck Wai

KOTA KINABALU: Sabah could become Malaysia’s centre of oil palm biomass development under the National Biomass Strategy, said chief executive officer of POIC Sabah Sdn Bhd, Datuk Dr Pang Teck Wai.

He said the projection was based on the availability of oil palm biomass comprising empty fruit bunches, palm fronds, trunks, palm kernel shells and mesocarp fibres from the 1.4 million hectares of oil palm plantations under development in the state.

Empty fruit bunches

Speaking at a media conference to announce Palmex Malaysia 2012 here yesterday, he said experts from the field would be sharing with participants at the event the available technologies, plans and potential for biomass development in Sabah.

Palmex Malaysia 2012, organised for the third consecutive year, will comprise the 3rd Malaysia International Palm Oil Technology Expo and a conference titled Outlook in Palm Oil Technology for SMEs.

Read more: http://www.theborneopost.com/2012/05/17/sabah-set-to-be-oil-palm-biomass-devt-centre/#ixzz1v5CinBuH

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Palmex 2012 Expects To Sign US$85 Million Worth Of Contracts

KOTA KINABALU, May 14 (Bernama) -- Contracts worth about US$85 million is expected to be concluded during the 2012 Palm Oil Exhibition (Palmex) in Sandakan beginning May 23.

Sabah Industrial Development and Research Director Patrick Tan said more than 5,000 visitors are expected to throng the three-day exhibition to be opened by Chief Minister Datuk Seri Musa Aman.

"The objective of the expo is to promote downstream and upstream processing activities in the state's oil palm sector," he told a press conference.

A one-day conference would also be held on May 24 in conjunction with the expo to discuss challenges and opportunities of tomorrow in the oil palm industry.

Further information on the exhibition and conference can be obtained via www.asiapalmoil.com.

-- BERNAMA

Source: http://www.bernama.com/bernama/v6/newsbusiness.php?id=666052 

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Musa: Tourism a big earner for Sabah

WORLD-CLASS: Unique culture a big draw, says CM

Datuk Seri Musa Aman

RANAU: SABAH'S tourism industry has grown rapidly and is a major contributor to the state's economy, Chief Minister Datuk Seri Musa Aman said yesterday.    

He said Sabah boasted world-class natural beauty and world heritage sites which had made the state a popular destination.

"The uniqueness of the culture and customs of the ethnic groups is also growing to be an important asset," said Musa in his speech at the launch of the Ranau District Kaamatan Festival celebration at the Ranau community hall, here.

His speech was read by Deputy Chief Minister Datuk Dr Yee Moh Chai.

Read more: Musa: Tourism a big earner for Sabah - General - New Straits Times http://www.nst.com.my/nation/general/musa-tourism-a-big-earner-for-sabah-1.83229#ixzz1utLmngZ2

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Sabah to study oil and gas industry in Kampung Kuala Abai

Datuk Seri Musa Aman

KOTA BELUD, May 13 (Bernama) -- The Sabah Government will study the need to develop an oil and gas industry in Kampung Kuala Abai, said Chief Minister Datuk Seri Musa Aman.

He said, as the area had great potential, the establishment of the industry would provide job opportunities to the people of Kota Belud. He urged them to support efforts to establish the oil and gas industry to generate domestic economy.

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Musa was speaking to reporters after launching the Sabah Foundation with the people''s programme at Sekolah Kebangsaan Pandasan here today.

Earlier, he commended the efforts of the Sabah Foundation Group for implementing various socio-economy development programmes which benefitted over 42,000 people.

Meanwhile, Musa reminded Barisan Nasional elected representatives, community leaders and civil servants to go to the ground and explain government policies and monitor the people''s problems and needs.

-- BERNAMA

Source:http://my.news.yahoo.com/sabah-study-oil-gas-industry-kampung-kuala-abai-084006627.html 

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Malaysia's Cabotage Policy

 

Cabotage to develop domestic shipping: Bakri

Kota Kinabalu: Deputy Transport Minister Datuk Abdul Rahim Bakri said the Cabotage Policy is maintained because it is recognised by the World Trade Organisation (WTO) as being of strategic importance to a nation.

He said this when replying to Senator Datuk Maijol Mahap and Senator Pau Chiong Ung in Dewan Negara.

He said when the policy was implemented in 1980, many countries around the world had already been applying it.

He said the Government implemented the policy to develop the nation's domestic shipping sector and also to achieve various objectives, namely:

- To abolish the country's dependence on foreign vessels which all this while has been contributing to the outflow of the nation's foreign currencies due to huge payment in the form of fraud and insurance payment

- To develop the nation's shipping sector to enable those involved to become players in the business of shipping either regionally or internationally

- To develop the shipping sector that is of a strategic dimension to the nation and part of the defence and security system where vessels could be utilised in case of crisis or emergency

However, Abdul Rahim stressed that the policy is very liberal and does not prevent any foreign vessels that wish to berth in the ports in Sabah and Sarawak to bring goods in or out. 

Source: http://www.dailyexpress.com.my/news.cfm?NewsID=81446 

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Sabah food, fruits industry to see RM1bil American investment

KOTA KINABALU: Sabah is expected to receive an investment of more than RM1bil from US-based company Dole, in the food and fruits industry.

Sabah Chief Minister Datuk Seri Musa Aman said further discussions are being held to determine the best method of collaboration with one of the state government agencies. “They (Dole), a major company in the food and fruits industry, have expressed deep interest in a collaboration.

“We are now seeking a suitable location while determining the form of collaboration with one of the state government agencies,” he told reporters after officiating the Putatan Agricultural Expo here yesterday.

Musa said foreign companies were keen to invest in Sabah as it was known as a peaceful state and suitable for investing, compared to some other places.

Read More: http://biz.thestar.com.my/news/story.asp?file=/2012/5/10/business/11262126&sec=business

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Sabah: Profits from the sea

Sabah Seaweed and Lobster

This is an interesting Economy Update taken from Oxford Business Group, published on the 23 Apr 2012. It highlights the marine based agriculture ( particularly the seaweed and lobster venture) backed by the State Government with the participation of both local and foreign bodies. Within the article itself highlights the potential challenges faced by the agriculture sector.

Recently launched government-backed ventures in aquaculture, including one to develop seaweed into a major economic product, look set to transform Sabah’s agriculture sector.

In March, the agriculture ministry, in collaboration with 11 companies, inaugurated a mini estate with the goal of producing 35,000 metric tonnes of seaweed as part of an entry point project (EPP) in seaweed production. This estate will be the first of 20 Sabah plans to build to fulfil its goal of generating RM1.4bn ($457m) in profit from the plant’s production by 2020. Together these estates should cover 3000 ha of sea and be a great boon for the state and the local producers who run most seaweed operations.

This venture is one of several government-sponsored projects to boost the seaweed segment. Expectations are for seaweed to become the state’s next big income earner, alongside palm oil. According to Mohd Johari Baharom, the deputy minister of agriculture and agro-based industry, RM12.8m ($4.2m) has been allocated to develop the industry, as well as RM750,000 ($244,921) to improve production standards, raising product quality for international markets.

The University of Malaysia Sabah is also participating, having signed three licensing agreements worth RM70,000 ($22,860) to monetise its seaweed production technology. The memorandum of agreement signed in March between the university and three firms – Green Leaf Synergy, VC United and Sebangkai Reef Eco – stipulates that the firms will market dry seaweed and support its production in return for the technology exchange.

The state foresees great potential in seaweed production: Sabah produced 23,940 metric tonnes of seaweed in 2011 and its medium-term goal is to produce 150,000 metric tonnes per year by 2020. Demand is also expected to rise, to 400,000 metric tonnes per annum, especially from countries like Japan, China, Australia and Canada. Apart from its consumption as a food source, the plant is used in many human products (such as cosmetics) and for nuclear fusion.

Lobsters are also attracting investor attention. US-based company Darden has formed a partnership with Sabah to develop an integrated lobster aquaculture park, with 9300 ha of sea space, 6000 ha of which will be devoted to commercial production. The project is forecasted to draw RM2bn ($653m) in investments and generate 9000 jobs by 2020. Set to contain its own lobster hatchery – rather than relying on seeds from the wild – the park will be the first of its kind in the world, according to Malaysian aquaculture specialist Ever Nexus, a partner in the venture. This provides a sustainable alternative to live capture, which over time could deplete the oceans of their lobster supply.

These projects bode well for an already healthy agriculture industry that is led by the palm oil segment. In the first three quarters of 2011, for example, Sabah saw RM16.75bn ($5.5bn) in palm oil exports, comprising 30% of all exports in the country. With 124 mills, 11 refineries and 14 palm kernel crushers, palm oil impacts the economy of the state deeply and widely. Other promising agricultural subsectors include bird nest production and rice.

Moreover, there are increasing financing options available for agriculture. Agrobank recently disbursed RM59,552 ($19,448) in funds for projects at its annual dinner. “Agrobank is offering special services to the agricultural sector not only on downstream but also on the upstream sector in order to help the industry to be transformed from a household income to an industry,” Mohd Fadzmi, the company’s CEO, said at the event.

Despite these developments, the agriculture sector still faces challenges. Once a state growth engine, agriculture now trails the energy, manufacturing and services sectors. While energy and manufacturing comprise 45.6% of planned investments and services holds 39%, agriculture accounts for only 5.5% of planned investment.

More effective capitalisation would go a long way in this regard, not only for the state’s economic development and investment, but also to assure national food security. But with strong performance in palm oil and major government-led investments in aquaculture, there are ample opportunities for the sector to rebound and play a more significant role in Sabah’s economy.

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