07 Feb 2011
The first trade mission objectives of Sarawak’s Tanjung Manis Halal Hub (TMHH), to Abu Dhabi in conjunction with “Invest Malaysia 2011” had surpassed expectations, with investments worth RM650 million being negotiated between TMHH and the Arab business community. The highly anticipated event, held at the Emirates Palace under the patronage of His Highness General Sheikh Mohammed and Prime Minister Datuk Seri Najib Razak, witnessed a large turnout of elite business leaders from the Middle East who was eager to collaborate and explore potential business opportunities through strategic investments in Malaysia.
The event also saw the Chief Minister of Sarawak, YAB Pehin Sri Haji Abdul Taib Mahmud addressing the crowd on food security issues and opportunities in the Halal sector in Malaysia. According to Haji Abdul Taib Mahmud, “Sarawak aims to secure a RM300 billion in investments by 2030 through private public partnerships encompassing developments across the state, including investments in the Sarawak Corridor of Renewable Energy (SCORE) and Tanjung Manis Halal Hub”. The investor road show by the TMHH delegates also saw His Excellency Khaldoon Khalifa Al Mubarak, CEO and Managing Director of Mubadala, gracing the event.
Arab countries are very vulnerable to fluctuations in international commodity markets because they are heavily dependent on imported food. According to the United Nations Food and Agriculture Organization (FAO), most Arab states import at least 50 percent of the food calories they consume and therefore, heavy dependence on food imports does raise concerns. In addition, although there is adequate unused potential farmland on a global level, the issues of land scarcity does in fact exist since only a fraction of this extra land is realistically available for agricultural expansion in the foreseeable future as much is needed to preserve forest cover and to support infrastructural development. Notably, the Muslim community constitutes 20% of the world’s population and food shortages or price shocks in Gulf Cooperation Council (GCC) nations would lead to major fiscal burdens and increased government subsidies.
Thus, with food security and its long term sustainability in question, THMM, with its sizeable land bank of 77,000 hectares, is seen as an ideal investment destination for the GCC community at large since it is blessed with ample supply of resources such as arable land, energy, water and labor. This unique selling proposition, coupled with a commitment from the Sarawak government to invest in support infrastructure has been the key enabler which led to significant interest and investments in the TMHH development. Additionally, three MOUs where signed today in preparation for projected investments amounting to RM10 billion over the next 5 years for the various infrastructure, development and industry business components into the TMHH project from private investors.
The first MOU between TMHH and Borneo Agriculture – a company headquartered in New York and with offices in the UAE, focuses on the firm providing investment advisory on agriculture development in Tanjung Manis Food and Industrial Park, and to assist with the formation and management of capital vehicles to fund an initial amount of RM1.5 billion for preliminary, first stage development in TMHH. Borneo Agriculture will also structure the funds through various investments and strategic initiatives including IPO related scope of fundraising, infrastructure, as well as project development at Greenfield and Brownfield stages. Additionally, the firm will work towards identifying institutional and private investors for the agriculture, aquaculture, horticulture, food processing, green and renewable energy sector, as well as other business opportunities in Tanjung Manis.
The second MOU between TMHH and Perigon Advisory WLL – a company in the advanced stages of launching a unique initiative - RM3 billion OIC food and agribusiness fund with an objective of promoting food security, as well as generating commercial returns for its investors - under the leadership of H.E. Dr. Abdullah El-Kuwaiz, a prominent statesman and financial industry professional in the GCC. Both parties will work towards in identifying suitable areas for collaboration and potential investment in the agriculture, aquaculture and horticulture, as well as other business opportunities in TMHH. Managing Partner of Perigon Advisory, Mr. Adeeb Ahmad was quoted saying that “TMHH is a unique and most opportune initiative since food security is a global issue that needs the highest level of attention by all stakeholders, especially those in the OIC region”. Their decision to collaborate with TMHH was strategic and based on the fact that Sarawak’s natural resources and their progressive approach, combined with private capital and expertise would be an ideal platform to make significant contributions to food security in the OIC region. Both parties are also studying the option of co-investing to set up a sovereign wealth fund that looks at food security investments – an initiative that portrays the state’s commitment in the Halal agriculture and aquaculture ventures in its bid to help ensure sustainability.
The third MOU with Focus International – the organizers of the Invest Malaysia 2011 event from the UAE, will see both parties working together to establish a presence for Tanjung Manis Halal Hub in the GCC, and to assist with securing long-term investors presence and research in the development. Areas of co-operation and collaboration include executing a public relations, event and media strategy throughout GCC and to act as its representative in the UAE for investors sourcing initiatives.
The team from TMHH concluded the event with a private seminar on food security that was presented to potential investors. It included a detailed presentation on TMHH’s unique business model and its role as a solution to fill food security gaps faced by Arab nations. Datuk Norah Tun Abd Rahman Ya’kub, Executive Chairman of TMHH in an interview concluded by saying “The TMHH hub is the answer to woes of the GCC nations as it would help mitigate food pricing inflation issues in the UAE through cost competitiveness and competitive advantages that are apparent along the food security value chain in Sarawak. The spinoff from the development would include job creation, increased income per capita, infrastructure development and connectivity, as well as additional business opportunities that would present itself to residents of Tanjung Manis and Sarawak – working towards achieving a developed State status by 2020.”
ABOUT TANJUNG MANIS FOOD & INDUSTRIAL PARK SDN BHD
Tanjung Manis Food & Industrial Park Sdn Bhd is a Government Linked Company of Sarawak that has been enthrusted with the task of developing the 77,000 hectare Tanjung Manis Halal Hub. TMFIP will undertake roles as the joint Master Planner, Marketing, Promotion and Branding for the 77,000 hectares, whilst driving the implementation of strategic projects and developing strategic public private partnerships to accelerate the socio-economic growth of the Halal Hub. TMFIP reports to the State Government whilst operating and working as a private sector entity for efficiencies and effectiveness. TMFIP has a full fledged corporate office in Kuala Lumpur, site office in Sarawak, site office in Tanjung Manis, dedicated management team, key consultants and advisors and credible board of directors for governance and coordinates efforts in the development of the Halal Hub in Sarawak with Federal Government and other agencies. TMFIP will create various subsidiaries and associate companies to handle investments into the Halal Hub, land leases and manage the infrastructure development by the Government to and within the area. TMFIP will also manage the One Stop Centre for Approvals with the Sarawak Halal Hub Authority for implementation and coordination efforts in relation to investors.
To improve the investment climate into the Halal Park, the Investment and implementation framework set by TMFIP are guided by the following: Simplified procedures with continuous follow up and support to investors; Provide for long-term planning to identify feasible investment opportunities; Advocate Special incentives to encourage investments in green technology and knowledge sectors; Identify Opportunities for public-private sector partnerships and creating of positive interactions such as industry academia collaboration and cluster associations; Leveraging on local capabilities and resources. TMFIP will also be setting up a trust for the people of Tanjung Manis to enable them to participate in the economic benefits of the projects.
ABOUT SCORE & RECODA
Sarawak’s economic stability is reinforced by its long-term strategic development plans and detailed every 5-year State Planning. The state has a business environment conducive for growth and is supported by good physical infrastructure. The Sarawak Corridor of Renewable Energy (SCORE) is one of five regional development corridors being developed in Malaysia. SCORE was conceptualized in 2008 designed to accelerate the growth of the Central Region and transform Sarawak into a developed State by 2020. SCORE is located within the Central Region of Sarawak, stretching for 320 km along the coast from Tanjung Manis to Similajau and extending into the surrounding areas and the hinterland. SCORE covers an area of 70,709 sq km, with a population of 607,800 people. The present major urban centre's within the corridor are Sibu, Bintulu, Mukah, Sarikei and Kapit. SCORE is managed by the Regional Economic Development Authority (RECODA) created under the Regional Corridors Development Authorities Ordinance, 2006, which prescribes these roles for RECODA which is run as a full pledged regional development authority with its own CEO and governance. The SCORE looks at investments into the region for US$100 billion till 2020 of which 40% will be from the Government in terms of infrastructure and energy sector requirements.
The core of the Sarawak SCORE corridor is the energy resources, particularly hydropower (28,000 MW), coal (1.46 billion tonnes), and natural gas (40.9 trillion square cubic feet) found abundantly within the Central Region. This will allow Sarawak to price its energy competitively and encourage investments of energy-intensive industries that will act as triggers for the development of a vibrant industrial development in the corridor. Investment efforts within SCORE will focus on the five new growth nodes, namely, Tanjung Manis, Mukah, Similajau, Tunoh and Baram. The symbiosis between these five new growth nodes will drive the development and growth of the entire central region, Sarawak and Malaysia as a whole. Ten industries have been identified as priority industries. The Sarawak Corridor will go beyond alleviating poverty and will lift the economy up a quantum level through waves of development in the coming decades to transform itself into an advanced industrialized State.
This is the aspiration behind the development of the Sarawak Corridor. The implementation of SCORE, Sarawak Corridor of Renewable Energy only marks the beginning of the states initiative to achieve its aims Sarawak continues to invest and expand into new and innovative business areas with global partners and investors. The catalyst of economic growth for Sarawak hinges predominantly on the production of energy especially from green and renewable sources, tourism, electronic manufacturing, timber, palm oil, shipping, oil & gas, organic and Halal food production to propel the state towards a “Developed State” status by the Year 2020.
Contact:
Mr. Adnan Ismail
Tanjung Manis Food & Industrial Park Sdn Bhd
Contact No: +6012-4989038 (HP)
Office: +603-20962022
