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Agriculture
About 1.2 million
hectares of Sabah's 2.2 million hectares of land, has been
tilled with various agricultural crops, mainly by oil palm,
occupying about 81% of the total cultivated land area. Sabah's
palm oil industry has emerged from a mere producer of crude
palm oil to a more diversified industry, contributing 16%
of the state's GDP and providing employment to about 60,000
people, representing about 5.4% of the state's total workforce.
Sabah is also the main cocoa producing state of Malaysia,
accounting for 64% of total cocoa bean production. Cocoa cultivation
presents good investment opportunities with the availability
of suitable lands, existence of established research and development,
and availability of dry cocoa beans for downstream processing.
Sabah's domestic-oriented
livestock industry is near self-sufficient in the supply of
poultry meat, table eggs and pork. Poultry rearing is the
most significant livestock industry in the state, followed
by pork production currently undergoing transformation from
small-scale farms to commercial entities, and dairy farming.
Investment opportunities in primary production include beef
and milk production, integration of beef cattle rearing with
plantation crops, use of high-tech farming systems in poultry
and eggs production and farming of goat/sheep, deer and ostrich.Opportunities
in downstream processing include the processing of chicken,
beef and pork into convenience foods such as burgers, sausages,
frankfurters and nuggets; canned and cooked meat; processing
of salted duck eggs and other products; production of UHT
milk-flavoured drinks, cheese, butter, yogurt and enriched
cream; and packaged snacks, preserved and minimal-processed
ready-to-eat food, sauces and pastes.
Fisheries industry
contributes about 2.3% to the state's GDP, with an estimated
38,000 people, including 20,000 full-time fishermen, directly
or indirectly involved in fisheries related industries in
the state. Sabah is self-sufficient in fish production and
is a net exporter of fish. Potential investment in the upstream
sub-sector are in deep sea fishing, shrimp farming, marine
fin-fish cage culture, cultivation of seaweed, lobster, crab,
sea cucumber and bivalves. Investment opportunities are also
available in the downstream sub-sector, including the production
of canned marine products, fishmeal, fertiliser, pharmaceuticals
(for example soaps, lotions and gamat water from sea cucumbers),
halal seafood, surimi-based processing and convenience foods.
Spawning, breeding and culturing of aquatic products, off-shore
fishing and processing of fishery products are considered
as promoted activities and are therefore eligible for tax
incentives, including the Pioneer Status and the Investment
Tax Allowance.
Forestry
Timber products
still remain as one of Sabah's main export earners. In 2002
the major timber products contributed about RM2.37 billion
in export earnings for the state, with the volume of exports
totalling 1.96 million m3. Plywood is the main timber product
exported, followed by sawn timber, paper, veneer, blockboard
fingerjoint and mouldings.
With the reduction
of the supply of logs from natural forest, Sabah has successfully
adopted and implemented the practice of sustainable forest
management (SFM). To ensure success, the Government has adopted
a five-pronged policy action plan: conservation through prudent
management of all forest areas, aggressive reforestation programmes,
escalation of research and development, massive re-injection
of funds in forest activities and upgrading of manpower training
programmes.
Business opportunity
for timber industry lies in the development of the tertiary
industry, processing of sawn timber and plywood into higher
value added finished products such as furniture, joinery and
mouldings, wooden toys, musical instruments, door and window
components and fancy plywood. The processing of lower valued
logs and wood residues into reconstituted wood products such
as chipboard, fibreboard, particleboard and wafer board is
another avenue for investment. Opportunity also exists in
commercial cultivation of fast growing tree species.
Gas
and Mineral Sector
Natural gas
presents opportunities for downstream processing to produce
gas-related products. Investment opportunities are also available
in processing of petroleum products and production of methanol,
power, energy, plastic end-products, ethylene, propylene,
BTX, styrene, urethane, formaldehyde, acetic acid, vinyl acetate
PE, PVC, ABS, ethylene glycol, etc.
Sabah's non-metallic mineral resources deposits, silica, clay
and limestone, estimated at 9.25 million tones(nearly half
of the known reserves in Malaysia) present opportunities for
the manufacture of various glass product.
Manufacturing
Investment
opportunities in the manufacturing sector are found in both
resource-based as well as non -resource-based industries.
Resource-based industries identified as having comparative
advantage for development and promotion include: Wood-based
industry; Palm oil industry; Cocoa industry; Processed-food
industry, including meat, marine products, dairy food, and
vegetables and fruits. Non-resource-based industries include:Electrical
& Electronics; Processing of Silica Sand; Machinery &
Equipment; Boat Construction & Repairs; and Petrochemical
Industries.
In line with
the Sabah Industrial Master Plan, the thrust of the State's
industrial development would be based on, among others, the
creation of specialized industrial parks, equipped with advanced
infrastructure facilities.
Sarawak
Sarawak offers
a wealth of natural resources ranging from petroleum and petrochemicals
to agricultural and forestry resources. These vast reserves
of resources are capable of sustaining burgeoning resource-based
industries and since these are largely untapped, there are
excellent opportunities for growth in value-added processing
ventures.
Natural
Resources
Oil And
Gas
Sarawak's vast
petroleum and natural gas reserves offer immense opportunities
in the processing of these resources. The rapid development
of the petroleum sector in Sarawak had been due not only to
the availability of large amount of reserves but also to the
government's efforts towards promoting private sector participation.
Forestry
Sarawak is
one of the world's largest exporters of tropical hardwood
timber. The State Government promotes higher value-added timber
processing activities through the Log Export Restriction Policy.
Several industrial areas primarily designed to meet the requirements
of integrated timber based operations have been developed
in Sarawak.
Minerals-based
Industry
Sarawak is
well endowed with silica sand, kaolin tic clay and coal, providing
vast potential for value-added processing. Total coal and
silica sand deposits are estimated at 700 million tonnes and
33 million tones, respectively. Kaolin tic and ball clay deposits
suitable in the manufacture of paper and ceramic products
abound in Sarawak.
Agro-Based
A total of
2.2 million hectares of land have been identified as having
potential for commercial agricultural development in Sarawak.
Potential
Industry - Biotechnology
The Government
is encouraging efforts to advance research and development
(R&D) in biotechnology given Sarawak's largely untapped
natural resources, i.e., Sarawak's forests which is home to
exotic species.
Non-
resource based industries
Sarawak Government has also accorded topmost attention to
non-resource based industries such as the electronic industry
as evidenced in the development of facilities and infrastructure
designed to ensure the growth and stability of the electronics
industry, i.e., Sama Jaya Free Industrial Zone.
Several sites
in Kuala Baram, Sibu and Tanjung Manis are also presently
being developed to cater to specific requirements of the thriving
shipbuilding industry. Ships made in the State have earned
a reputation for quality among clients from countries such
as Singapore, Indonesia, Vietnam and other Asian countries.
Other Potential
Industries
Other non-resource
based industries such as engineering works, metal fabrication,
steel, machinery and transport equipment components, show
promising potentials.
Availability
of skilled and technical manpower
Sarawak has a very dynamic and young labour force. Of the
State's 1.8 million population, 70% or 1.3 million are below
the age of 40. Sarawak's educational institutions, both government
and private sector-ran, offer courses designed to provide
industries with competent and qualified workforce.
Investment
Location
FT Labuan
Natural
Resources
Labuan's economy
is dominated by the mining sector, largely represented by
oil and gas production and its related industries, followed
by the manufacturing sector, wholesale, retail, hotel and
restaurants sector.
As Malaysia's
only deepwater anchorage, Labuan is a free port and an International
Offshore Financial Centre (IOFC). Although
still not a major economic contributor, the finance sector
is gaining significantly with a steadily increasing GDP contribution
(from 5.7% in 1991 to nearly 10% in 1998).
Malaysia invested
hundreds of millions of dollars into improvement of Labuan's
physical infrastructure, providing excellent office and light-industrial
premises, and state-of-the-art telecommunications including
an Internet Gateway which provides a e-commerce platform.
Most top accounting and consultancy firms hold office in labuan.
Compared with other regional financial centres, Labuan is
comparatively cheap, both in terms of physical facilities
such as rentals, professional fees charged by accountants,
lawyers and other service providers.
Cost of
production
Related Links:
Malaysia
Country Analysis Brief on Energy
Links:
Agriculture-
http://www.sabah.gov.my/didr/english/Sectoral.htm
Forestry - http://www.sabah.gov.my/didr/english/SectoralF.htm
Gas and Mineral Sector - http://www.sabah.gov.my/didr/english/SectoralG.htm
Manufacturing - http://www.sabah.gov.my/didr/english/SectoralM.htm
Sarawak
Natural Resources - http://www.mid.sarawak.gov.my/advantage_rich.htm
Non-resource
based industries - http://www.mid.sarawak.gov.my/advantage_non.htm
Availability
of skilled and technical manpower
http://www.mid.sarawak.gov.my/advantage_young.htm
Investment
Location - http://www.mid.sarawak.gov.my/location.html
Labuan - http://www.lofsa.gov.my/lofsa5/index.htm
Wages - http://www.mida.gov.my/costs.html
Electricity
and water rates - http://www.mida.gov.my/costs.html
Related links:
http://www.eia.doe.gov/emeu/cabs/malaysia.html
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