Borneo Aqua faces competition mainly from foreign companies in the Asia Pacific region, especially in the production of fish fry. Currently, Taiwanese companies dominate the fish breeding industry in the Asia Pacific region including the industry in Malaysia for many years, particularly in the supply of fish fry.  They are able to dominate the industry due to their superior and advanced breeding techniques, which were acquired through many years of research.

Despite being new to the industry, Borneo Aqua is confident of breaking into the markets in view of the following competitive advantages over other companies in the Asia Pacific region:

  • Borneo Aqua Group has the technology and capability in R&D to succeed in the industry. The research basing on technology from various countries, is specifically focused on high value species for commercial purpose.
  • The Malaysian Government is aggressively promoting aquaculture as one of the growth industries for the country. The Government has many tax incentives in place for companies involved in fish farming industry. Most companies involved in the fish farming industry are eligible for certain tax exemption. Such incentives augur well for the Borneo Aqua Group as in addition to it being eligible for the exemption, such incentives will encourage more fish farming in Malaysia creating greater demand for its fish fry.
  • For the Malaysian market, Borneo Aqua being located in Sabah, has the logistic advantage over its competitors of fish fry. Due to the shorter distance, the freight charges and lower fry fatality is translated into cheaper fish fry with better quality for the customers.
  • The direct cost of fish breeding in Sabah is generally lower compared to an advanced country such as Taiwan. In particular, the costs of land, labour and trash fish are not only cheaper but also easily available. Hence, the cost of operations of Borneo Aqua is much lower than its competitors.
  • Fish will only breed during the warmer period of the year and hence fish breeding in the temperate countries such as Taiwan is only limited to approximately 6 months a year whereas in tropical land such as Sabah, breeding is all year round. This advantage not only increases the volume of the production of fish fry but also provides flexibility for optimising the usage of available facilities.
  • Due to its rich marine life and more conducive water conditions and weather, it is much easier to obtain new wild broodstock of various species in Sabah's coastal area for R&D and commercial breeding compared to other countries such as Taiwan.

 

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