Post by Baqu3ro on Jun 20, 2008 17:43:49 GMT 8
Xian Leng shows that ornamental fish is big business
AT one time or another, most of us have kept fish at home, ranging from the nondescript varieties caught in ditches to prized specimens whose cost may take a chunk out of our monthly salaries. It is a common hobby, and as often is the case, one man's hobby is another man's business.
In fact, the ornamental fish sector is a huge one globally. The Food and Agriculture Organization of the United Nations (FAO) describes it as “a widespread and global component of international trade, fisheries, aquaculture and development”.
It says: “The entire industry, when non-exported product, wages, retail sales and associated materials are considered, has been estimated to be worth US$15bil.”
Tan: About 80% to 85% of our production goes to Singapore for re-export
For an idea of the breadth of the industry, consider Netherlands-based Ornamental Fish International, a worldwide trade association that claims to represent all sectors of the ornamental aquatic industry in some 40 countries.
On its membership roll are consultants, manufacturers, publishers, wholesalers, collectors, breeders, retailers, importers, exporters, plant specialists, freight forwarders, airlines and exhibition companies.
The biggest market is the United States, with about 10% of its households keeping ornamental fish. The other major export destinations are Japan and the European Union. But what is intriguing is that many of the fish comes from this part of the world.
Malaysia is the world's No.1 producer and second largest exporter of ornamental fish. The country's leadership position in production is significant because more than 90% of freshwater ornamental fish are captive bred.
“Not many people know this,” says Xian Leng Holdings Bhd executive director Tan Cheng Kiat. “Singapore is the top exporter. About 80% to 85% of our production goes to Singapore for re-export.” Singapore is said to be strong in the export market largely because it has more air connections and its government is more facilitative.
However, these advantages may not be enough to keep Singapore in the lead for very long. Tan, who is a former deputy director-general of the Department of Fisheries Malaysia, applauds the Government's efforts in expanding Malaysia's production and exports of ornamental fish.
For one thing, the industry offers a lot of potential. “It's a huge field to go into. There are 500 to 600 varieties of ornamental fish. There's no way anybody can produce them all,” he says.
“And it's a growing hobby. As countries develop, the people will need more recreational activities. Keeping fish is easy to do and it brings out good qualities such as gentleness and caring. It helps develop character in children. And it's good for stress relief.”
Tan believes that there is nothing to stop Malaysia from taking on a bigger slice of the global business if the right strategies are adopted. “It is a young industry. There's a lot of growth ahead. Malaysia is a tropical country and we can produce year-round,” he points out.
“We have breeders in Penang who are are world-famous for their discus, and there are those in Ipoh who have specialised in koi and goldfish. That kind of expertise exists in this country. It can be done.”
Xian Leng’s breeding ponds in Batu Pahat
The Ninth Malaysia Plan, spanning 2006 to 2010, targets 21.5% growth for aquaculture, as compared with the 8.3% recorded during the previous five years. Ornamental fish is part of the focus, and the aim is to increase production from 456 million tails to 800 million tails.
A pivotal move was the decision to allocate 39 Aquaculture Industry Zones (AIZs) and to provide the necessary infrastructure and support services for the development of the sector.
Last October, Agriculture and Agro-Based Industries Minister Tan Sri Muhyiddin Yassin said these AIZs require RM2bil in investments and would be opened to local and foreign investor in 2008. He added that his ministry has identified 25,000ha of land throughout the country for the AIZs.
This is important, Tan says, because land is a necessary for fish breeders to operate. “There is no shortage of investors if there is land,” he adds.
In a speech in London last July, Muhyiddin said, “We target that by 2010, we will produce 603,530 tonnes of fish with a value of RM4.02bil. Indeed, there is immense potential for investment in this sector especially for high-tech and capital-intensive aquaculture projects such as shrimp and fish projects.”
He added, “We have created zoning systems for the export-oriented industry in ornamental fish and aquatic plants. Currently the industry places its main focus on high-value species such as the Arowana and Discus fishes. Britain’s expertise in the production in these species would be of great advantage for profitable joint ventures.”
Tan agrees that know-how is a crucial ingredient in the ornamental fish industry. “You must have the technology. We are dealing with live fish. Anything dead has no value,” he explains.
Anybody who doubts that that the ornamental fish industry can be big business should take a look at Xian Leng, a breeder and supplier of Asian Arowana and other ornamental fish. The company was listed on the second board of Bursa Malaysia in December 2001 and transferred to the main board in September 2003.
Currently, the industry places its main focus on high-value species such as the Arowana
Its major achievement was to be the first Asian company to secure Cites (Convention on the International Trade in Endangered Species) registration, permitting the trading of the Asian Arowana. The company is also a pioneer in the creation of new Asian Arowana variants.
It received the KPMG Shareholders’ Value Award in 2004 and the stock was an analyst favourite at one time. Price compesampayanon in recent years has been a challenge for the company, but that underscores the fact that the attractiveness of the industry has drawn in more players.
It also means that investors in the sector must have airtight game plans and strong execution skills to ensure success in the field.
AT one time or another, most of us have kept fish at home, ranging from the nondescript varieties caught in ditches to prized specimens whose cost may take a chunk out of our monthly salaries. It is a common hobby, and as often is the case, one man's hobby is another man's business.
In fact, the ornamental fish sector is a huge one globally. The Food and Agriculture Organization of the United Nations (FAO) describes it as “a widespread and global component of international trade, fisheries, aquaculture and development”.
It says: “The entire industry, when non-exported product, wages, retail sales and associated materials are considered, has been estimated to be worth US$15bil.”
Tan: About 80% to 85% of our production goes to Singapore for re-export
For an idea of the breadth of the industry, consider Netherlands-based Ornamental Fish International, a worldwide trade association that claims to represent all sectors of the ornamental aquatic industry in some 40 countries.
On its membership roll are consultants, manufacturers, publishers, wholesalers, collectors, breeders, retailers, importers, exporters, plant specialists, freight forwarders, airlines and exhibition companies.
The biggest market is the United States, with about 10% of its households keeping ornamental fish. The other major export destinations are Japan and the European Union. But what is intriguing is that many of the fish comes from this part of the world.
Malaysia is the world's No.1 producer and second largest exporter of ornamental fish. The country's leadership position in production is significant because more than 90% of freshwater ornamental fish are captive bred.
“Not many people know this,” says Xian Leng Holdings Bhd executive director Tan Cheng Kiat. “Singapore is the top exporter. About 80% to 85% of our production goes to Singapore for re-export.” Singapore is said to be strong in the export market largely because it has more air connections and its government is more facilitative.
However, these advantages may not be enough to keep Singapore in the lead for very long. Tan, who is a former deputy director-general of the Department of Fisheries Malaysia, applauds the Government's efforts in expanding Malaysia's production and exports of ornamental fish.
For one thing, the industry offers a lot of potential. “It's a huge field to go into. There are 500 to 600 varieties of ornamental fish. There's no way anybody can produce them all,” he says.
“And it's a growing hobby. As countries develop, the people will need more recreational activities. Keeping fish is easy to do and it brings out good qualities such as gentleness and caring. It helps develop character in children. And it's good for stress relief.”
Tan believes that there is nothing to stop Malaysia from taking on a bigger slice of the global business if the right strategies are adopted. “It is a young industry. There's a lot of growth ahead. Malaysia is a tropical country and we can produce year-round,” he points out.
“We have breeders in Penang who are are world-famous for their discus, and there are those in Ipoh who have specialised in koi and goldfish. That kind of expertise exists in this country. It can be done.”
Xian Leng’s breeding ponds in Batu Pahat
The Ninth Malaysia Plan, spanning 2006 to 2010, targets 21.5% growth for aquaculture, as compared with the 8.3% recorded during the previous five years. Ornamental fish is part of the focus, and the aim is to increase production from 456 million tails to 800 million tails.
A pivotal move was the decision to allocate 39 Aquaculture Industry Zones (AIZs) and to provide the necessary infrastructure and support services for the development of the sector.
Last October, Agriculture and Agro-Based Industries Minister Tan Sri Muhyiddin Yassin said these AIZs require RM2bil in investments and would be opened to local and foreign investor in 2008. He added that his ministry has identified 25,000ha of land throughout the country for the AIZs.
This is important, Tan says, because land is a necessary for fish breeders to operate. “There is no shortage of investors if there is land,” he adds.
In a speech in London last July, Muhyiddin said, “We target that by 2010, we will produce 603,530 tonnes of fish with a value of RM4.02bil. Indeed, there is immense potential for investment in this sector especially for high-tech and capital-intensive aquaculture projects such as shrimp and fish projects.”
He added, “We have created zoning systems for the export-oriented industry in ornamental fish and aquatic plants. Currently the industry places its main focus on high-value species such as the Arowana and Discus fishes. Britain’s expertise in the production in these species would be of great advantage for profitable joint ventures.”
Tan agrees that know-how is a crucial ingredient in the ornamental fish industry. “You must have the technology. We are dealing with live fish. Anything dead has no value,” he explains.
Anybody who doubts that that the ornamental fish industry can be big business should take a look at Xian Leng, a breeder and supplier of Asian Arowana and other ornamental fish. The company was listed on the second board of Bursa Malaysia in December 2001 and transferred to the main board in September 2003.
Currently, the industry places its main focus on high-value species such as the Arowana
Its major achievement was to be the first Asian company to secure Cites (Convention on the International Trade in Endangered Species) registration, permitting the trading of the Asian Arowana. The company is also a pioneer in the creation of new Asian Arowana variants.
It received the KPMG Shareholders’ Value Award in 2004 and the stock was an analyst favourite at one time. Price compesampayanon in recent years has been a challenge for the company, but that underscores the fact that the attractiveness of the industry has drawn in more players.
It also means that investors in the sector must have airtight game plans and strong execution skills to ensure success in the field.