Proposed Pulau Layang2 Aquaculture Project

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NEXT PEARL (M) SDN. BHD. (Putrajaya, 6 August 2014)

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Proposed Research & Development Activities

Set net fishery Cage fishery

Lobster farming

Sea Cucumber farming 2

Corporate Structure

Next Pearl (M) Sdn Bhd

R&D

Production

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Technology Enhancement

Eco-Tourism

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Corporate Strategy (Research & Development) The Proponent's primary business activity is in undertaking extensive R&D within the LayangLayang Exclusive Economic Zone (EEZ) focusing on: (1) Exploring and Enhancing the modern SetNet technologies in collaboration with National Taiwan Ocean University with the purpose of adapting it to suit our Malaysian sea-condition and fishing traditions

SET NET FISHERY

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Corporate Strategy (Research & Development) (2) To extend further R&D in the development of Hatchery / Nursery (using square cages) techniques based on the latest patented technologies from Taiwan to ensure that Malaysia will be able to increase the population of its marine species so as to achieve the Country's target of being self-sufficient in marine produce by 2020

CAGE CULTURE Semi-submerged cages

Benefits – Can withstand: 1. Strong wind 2. Harsh wave 3. Choppy conditions of water 4. Water current: 2.0 knot 5. Wind speed: 4.0 knot 6. Tidal variation: 4 meter Semi-flexible system

Dimension: Diameter- 60 feet Height- 40 feet Distance from the seabed- 30 feet (water depth= 60 feet) Volume:47,000 m33

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Corporate Strategy (Research & Development) (3) To house the smaller fishes caught (such as yellowfin tuna, big-eyed tuna and grouper) in round cages to be fattened. Through this process, the researchers will be able to undertake studies in the areas of fish growth rate, eating pattern & resistance to diseases.

The data gathered will be able to assist Malaysia to formulate its marine production strategies, which is critical to ensure sufficient food security for the Country

Diagram for submerge cage

60ft parameter

40ft Deep

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Corporate Strategy (R&D Process Flow per 2 years cycle) (2) Monitor & Record harvested marine species for research (1) Acquired Set-Net system from Taiwan & install at Layang-Layang

(3) Identified Breeder Fish for the Hatchery process (4) Direct smaller fishes for Fattening process 10

Corporate Strategy (Pilot Production Program) After the initial 2 years of R&D whereby the proponent will work closely with the research team from Ministry of Agriculture, and upon determining the viability of commercializing the aquaculture farming industry at Layang-Layang island, we will proceed to move to this stage where we will acquire more cages to set-up a working farm to further conduct research and testing of the various processes.

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Corporate Strategy (Technology Enhancement) In collaboration with National Taiwan Ocean University and the research department of Ministry of Agriculture, we will conduct further research and studies to ensure that we are able to introduce modern aquaculture techniques and approaches into the Malaysian fishing industry. To this end we will target the setting up of Undergraduate & Post Graduate programs by research.

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International Research, Training & Support from our Smart Partnership association with National Taiwan Ocean University (NTOU) being one of the Top 100 research universities in the world

Advanced Stage of Negotiation on Post Graduate & PhD twinning research programs to be conducted at Layang Layang Training Center

Corporate Strategy (Eco-Tourism) In our effort to create awareness amongst Malaysian towards the need to conserve and preserve our natural marine resources, we planned to conduct limited short study tours for selected groups (especially from the various universities in Malaysia) so that they can experience “first-hand� the beauty of adopting sustainable aquaculture farming to increase marine production.

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Possibility of allowing selected groups to visit the Research Center and to view its undersea habitat in a controlled environment without disturbing the site or compromised security

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Manpower Requirement Being a Malaysian entity, our first priority is to train and provide employment for Malaysian. Given the labor intensive nature of the industry, we will work closely with the Agriculture College setup by the Ministry of Agriculture and the Labuan Community College to train the identified workers in the relevant module require by our operations. In this way, we will also be able to impart modern aquaculture knowledge to Malaysian.

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Corporate Plan (HR Composition) Period

Expatriate (Specialist Divers)

Management & Executive

1st 3 years

10

20

40

400

4th – 9th year

10

34

60

600

10 year onwards th

10

45

Supervisory (with MLVK Level 3 Certification)

90

Skilled Employees (with at least MLVK Level 1 Certification)

900

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Corporate Plan

(Senior Management Team & Specialist) Position

Pax

Remark

Chief Executive Officer

1

GM Operations

4

Finance Manager

1

Researchers

10

On rotation between researchers from Ministry of Agriculture and National Taiwan Ocean University

Divers

10

PADI certified professional and experience divers from Sri Lanka & Pakistan to identify and catch “breeder stock�

One for each sector

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Corporate Plan (Research Vessels) Layang-Layang Island is located approximately 140 nautical mile from Labuan Island and 170 nautical mile from Kota Kinabalu. Given the limited number of flights servicing Layang-Layang Island and the expensive fare incurred, we planned to acquire 2 research vessels with multipurpose functions of Research, Training and Logistic transportation of personnel & goods from Labuan to Layang-Layang.

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Corporate Plan (Research Vessels) The said vessels will be registered under Next Pearl (M) Sdn Bhd as research vessels. Its home port will be Labuan with its operation area covering the entire sea area under Malaysian waters.

The vessels will be made available to the research team at the Ministry of Agriculture on an agreeable duration for its research purposes subject always to the mutual understanding and agreement by both parties.

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Corporate Plan Photo of the Research Vessel (Research Vessels Model)

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Corporate Plan (Research Vessel Specifications) The main measure of Loa 38.00 m total length Design waterline length Lwl 34.35 m Length between perpendiculars Lpp 32.00 m Breadth B 6.80 m Depth D 3.35 m Design draft d 2.50 m Design displacement â–ł ~ 380.30 t The total tonnage to 214 Net tonnage to 74

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Corporate Plan (Research Vessel Specifications) The main performance Design speed V ~ 11.5 kn Holding force 40 d 3500 n mile endurance Fuel 50.2 t Freshwater 40.8 t Nets 4.0 t Fish tank capacity 161.8m3 Fish tank temperature -25 ℃ Solid ballast 40.0 t

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Corporate Plan (Research Vessel Specifications) Main navigation aids fishing equipment Navigation radar FR-8062 Satellite navigation systems GPS-182C Automatic Identification instrument AIS SI-30 Fish finder FCV-295 VHF radiotelephone STR-6000A Medium / high-frequency wireless devices SRG3150DN Fishing talkie FT-900

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Research & Training Vessels (2 units)

Support Support research research through through the the use use of of vessel vessel Laboratory inside the vessel for working with marine specimens & keeping track of scientific data.

Vessel Carrying Carrying crane crane net net for for pulling pulling out out the the net net and and fish fish

Fish Fish transportation transportation Vessel equipped with ice box to keep freshness of the fish.

Live fish selected for further culturing can be transported by vessel equipped with live fish tank

Corporate Plan (Investment & Finance) The proponent would like to express its gratitude to the Ministry of Agriculture for its generosity in assigning their current research facilities at Layang-Layang island to Next Pearl (M) Sdn Bhd. This is indeed critical for the success of this proposed project. On top of this generous contribution, we have also identified the various equipment needed for the project as follows:

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Research Center

(Planned Project Investment) Round Cages for Fattening (150 sets)

RM 30.0m

Square Cages for Hatchery (100 sets)

RM 10.0m

Set-Net (30 sets)

RM 15.0m

Research Vessels (2 units)

RM 30.0m

Upgrading of Research Facilities

RM 10.0m

New Laboratory Equipment

RM 10.0m

Seed-bank Facilities

RM 30.0m

Set-up, Storage, Administration, etc

RM 15.0m

Initial Capital Required

RM150.0m 28

Corporate Plan (Investment & Finance) Given the investment cost incurred, Next Pearl (M) Sdn Bhd would be most grateful if the relevant Ministries could approved certain grants to the proponent to lessen the financial burden. We strongly believe that this project will bring about enormous benefits to Malaysia and will greatly contribute towards making Malaysia self sufficient in cultivating its marine resources by 2020.

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Corporate Plan (Facilities Concession) Given the large amount of capital needed to be invested in the Layang-Layang Aquaculture Research Project, we would like to seek the generous consideration of the Malaysian Government to lease the said facilities to the proponent based on a tenure of 20 years + 20 years. This is to enable Next Pearl (M) Sdn Bhd to recoup the investment committed into setting-up this project and to ensure the project is financially viable.

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Corporate Plan

(Project Initialization Timeline) Cages

Reseach Vessels Acquisition Implementation Production

Set-Net

R&D

Upgrading of Facilities

Facilities Handover

MOU 0

1

2

3

4

5

6

7

8

9

1 = Sept-14 2 = Dec-14 3 = Mar-15 4 = Jun-15 5 = Sept-15 6 = Dec-15 7= Mar-16 8= Jun-16 9= Sept-16

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Target Research Species of Marine Fish

Tiger grouper

Malabar grouper

Golden trevally

Orange spotted grouper Giant grouper

Giant trevally

Round winged mackerel

Humphead wrasse Yellowfin tuna Bigeye tuna

Skipjack

Frigate mackerel

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