January 3, 2014      

 

Malaysia's Pitas shrimp project 'unfavourable'

                                                       

 

Former Sabah Minister of Manpower and Environmental Development, Yap Pak Leong has doubted the profitability of the MYR360 million (US$109 million) cultured shrimp production and commercial development project in poverty-stricken Pitas in northern Sabah.

 

Yap claimed that there were recent reports of successful projects in Semporna and Tawau but that these were sold off to the Thais "as the five year arrived with bad signs".

 

He also explained that the initial success of the projects was because of expensive treating of polluted pond water before it was released to the rivers and brackish inlets, and likewise the water was treated before letting it back into the ponds to avoid virus and other diseases.

 

"But nature helped the microbes to multiply and attack back, as the treatment system was not full-proof," he noted.

 

Yap posted his comment on FMT's recent report on the now controversial shrimp project in covering 3,000 acres in Pitas. The project is being undertaken as an Entry Project Point (EPP) under the National Key Economic Area (NKEA), initiated by Prime Minister Najib Razak, to help increase the income of Malaysians.

 

The NKEA itself was established to focus on giant economic projects that are expected to boost economic opportunities for people in the vicinity where an EPP is established, mainly to help eradicate poverty and propel Malaysia to become a high-income nation by year 2020.

 

Meanwhile, Sunlight Inno Seafood Sdn Bhd, the joint-venture company of the Pitas shrimp project which had ignored a MYR30,000 (US$9,100) fine slapped on it by the Environment Protection Department (EPD) in September for clearing the mangrove forest near Sungai Eloi in Pitas, insinuated that it was under extreme pressure to start the project.

 

Chief executive officer King Wong said they had to start work soon or else the MYR400 million (US$121.5 million) federal funds would be taken away from Pitas and put somewhere else. This, he added, was among the reasons why the company began clearing the mangrove forest even before an environment impact assessment (EIA) was completed or approved.

 

"We would submit the EIA report soon... The Environment Protection Department (EPD) only approved us the TOR (term of reference) of the assessment only on July 10 this year..." he said implying that both the government and the joint venture (JV) company were under pressure to carry out the high-impact project as soon as possible.

 

It is understood that the land area affected was also still being sorted out with the Land and Survey Department and the Pitas district's Land Utilisation Committee (LUC).

 

King also clarified that it was not a 4,000 acres (as reported by local press) but only 3,000 acres that were being earmarked for the shrimp project.

 

He also said that the JV company had recently settled the MYR30,000 (US$9,100) fine slapped on it by the EPD. He said the delay was not intended but that EPD did not receive cash or cheque for payment but only through bank draft.