business

MAG Holdings, West Nusa Tenggara governor to discuss on shrimp farming project in Indonesia

KUALA LUMPUR: MAG Holdings Bhd (MHB) has taken proactive steps in its pursuit to invest in a shrimp farming project in Indonesia, with senior executives from the company meeting the West Nusa Tenggara governor and its officials.

MHB executive chairman Ng Min Lin met with West Nusa Tenggara governor Pak Zulkieflimansyah and discussed accelerating investment into Indonesia's thriving shrimp farming industry and building a strong and productive relationship with the Indonesian government.

"We profoundly appreciate governor Zulkieflimansyah's commitment and the broader Indonesian government's endorsement.

"This partnership fortifies our presence in Indonesia, simultaneously driving regional economic development," he said in a statement.

Governor Zulkieflimansyah has also supported MHB's expansion endeavours, emphasising the potential economic boost the project is poised to bring to the region.

His endorsement accelerates MHB's strategic investment initiative, streamlining procedural formalities and paving the way for expedited operational rollout.

As anticipation builds among stakeholders and observers, the promising dialogue suggests significant advancements in the shrimp industry could soon be on the horizon.

The meeting followed MHB's signing of a term sheet with LIM Shrimp Organization Ltd (LSO), a 50 per cent equity investment in Lim Shrimp Aquapolis Pte Ltd (LSA) and a joint venture with PT Gerbang NTB Emas (PT GNE) for shrimp farming in Sumbawa, Indonesia.

This SG$6.1 million, equivalent to RM22 million, investment expands MHB's portfolio, underscoring its confidence in the growing shrimp industry.

LSO operates fish butcheries and farms, while LSA provides management and aquaculture consulting.

The support from the government and other stakeholders will boost the financing agreements with Bank NTB, accelerating investment in the shrimp farming industry in Indonesia.

Underpinned by financing arrangements with Bank NTB and a three-year tax-free operational headstart, MHB is well-positioned to capitalise on this venture.

The readiness of PT GNE to facilitate infrastructural support further strengthens MHB's strategic orientation in the region.

The Indonesian government's eagerness to expedite requisite permits and support the enhancement of the Pelabuhan Badas Port for 20-foot export-grade reefer containers will significantly streamline the exporting processes to key global markets, including the United States, Europe, China, and Australia.

"With our synergistic collaboration with LSO, PT GNE, and the staunch support from the Indonesian government, we are geared to deliver substantial medium- and long-term earnings, fostering not just profitability but also supporting the sustainable evolution of the local shrimp farming industry," Ng added.

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