November 28, 2007
MALAYSIA-AUSTRALIA : Trade
Australian investors eye chicken farms in Malaysia
Two Australian investors are eyeing the potential of Malaysia's East Coast Economic Region (ECER) as a poultry hub, local media reported on Tuesday.
The two firms, both large-scale chicken producers, see the region as a possible platform to tap into the halal market, the ECER secretariat said on Monday.
The companies have approached Rating Agency Malaysia Holdings' research unit, RAM Consultancy Services Sdn Bhd.
The Australian firms were gathering information on the viability of the project and its cost-effectiveness, RAM Holdings chief economist Yeah Kim Leng said.
"The ECER holds vast potential for them as the government is promoting integrated chicken farming and is looking to boost chicken production in the region by 35 percent by 2010.
"Investment in poultry within the region makes sense due to the relatively cheap cost of land and labor.
"In comparison, the land on the west coast has become expensive because of rapid industrialization and the lower availability of land due to development," the New Straits Times on Tuesday quoted Yeah as saying.
The region presented a good opportunity for the development of the chicken farming industry, said Abdul Rahman Saleh, executive consultant of the Federation of Livestock Association of Malaysia.
The long-term potential for the region was extremely good, he said.
The project was viable and would create more jobs, said Razak Zailan, Veterinary Services Department officer in charge of poultry.
"The integrated project will improve the chances of success. Itis important for chicken processing plants to be near the farms sotravel time is shorter and prevents stressing the poultry.
"The plan would also make chicken rearing more productive and efficient," he said.
The ECER, the third development corridor that Malaysian government has launched since last year, covers Kelantan, Terengganu, Pahang and the Johor northern district of Mersing and aims to turn the states into developed ones by the year 2020.
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