The end of the fishy business?

[iwishweallcouldwin]

The Straits Times
Prime News
Ornamental fish trade in danger of drying up

3 April 2010
Straits Times

SINGAPORE'S ornamental fish export industry, the largest in the world and worth almost $100 million annually, is in danger of drying up.

The leases of 16 major exporters in Jalan Kayu, who export about 80 per cent of exotic species such as goldfish and Asian arowanas from Singapore, will expire at the end of the year.

And there is little chance of a renewal, as the space, which is government land, is slated for new roads and industrial development.

The ornamental fish exporters there, who can set up only in locations approved by the Government, fear that they will have nowhere else to go.

Although two days ago the Singapore Land Authority (SLA) released four sites at Lorong Chencharu in Yishun for tender, fish exporters say it is not enough to keep them afloat.

The four new sites have a total land area of 1.72ha - slightly more than the size of two football fields. That is less than a third of the 6ha total land area of the current sites.

'It is definitely not enough land, how can it be enough? It is enough for only three or four companies at most,' said the chairman of Singapore Aquarium Fish Exporter's Association Fong Ching Loon, who has met the SLA and the Agri-Food & Veterinary Authority of Singapore (AVA) several times over the past year to discuss the matter.

The AVA regulates and licenses all fish exporters here. It also worked with the SLA to identify the new land parcels.

Mr Fong, the owner of major fish exporting company Aqua Fauna Fish Industries, is also worried that two factors will limit space even further: Companies might bid for even more land than they have at the original site, and exporters from out of the area may also vie for spots at the new space.

The SLA said the four newly released sites - which are being offered on 10-year leases with an option to renew for another 10 years - are being made available to 'facilitate the relocation of the fish exporters from Jalan Kayu where their current sites are affected by public infrastructure development works'.

The sites, said an SLA spokesman, form part of a larger plot of land, earmarked for aquarium fish export centre use or other agricultural uses. However, it could not guarantee that the plot of land will be sufficient to house all of the displaced companies.

The invitation to tender will close on April 29.

But the exporters are also worried that time is against them.

Mr Fong, who pointed out that the new parcels of land are little more than empty plots, said it will take at least a year to equip them with the necessary infrastructure like fish tanks and warehouses. He added that the area would then have to be approved by the AVA.

The association, made up of 45 members, is in discussions with the SLA to find a solution, such as extending the current lease, as a stop-gap.

Mr Ricky Lim, the owner of Aqua-Nautic Specialist, fears the issue could send his business down the drain.

'Where can we move our equipment? We have many customers who are lined up. If we stop supplying for even a few months, we will lose business to other countries,' said the 50-year-old.

Exporters are also worried that the limited spaces for tender will lead to a bidding war.

'Now it's a competition, we will all fight for the new plots and this will push up prices,' said Atlas Aquarium managing director Lucien Low, who has been in the business for 40 years.

'If the Government really wants to support our industry, they should discuss the new rental with us and make it easier for us to relocate.'

In 2008, the Republic exported $97.2 million worth of ornamental fish - cornering about a fifth of the global market - to more than 85 countries around the world. Other major fish exporting countries include Spain, Malaysia, the Czech Republic, Japan and Thailand.

The AVA said it is in Singapore's best interests to keep the industry afloat.

'We are the ornamental fish capital of the world, it is important for us to develop an edge over similar industries elsewhere,' said Dr Ling Kai Huat, AVA's Ornamental Fish Specialist.

'Our role is to share with the relevant authorities the need for such aquarium fish export centres, we will work closely with the exporters and SLA to facilitate the relocation.'



Something that affects all aquaria enthusiasts. What are your views on this?

[exotic_idiot]

That's really bad news...
Fish prices might go up if their new rental is high and poor hoobyist like me have to forget about the hobby

[genes]

The Brazilian government is building dams and here our government are building roads and both affecting the fish trade somehow.

Anyway, there's nothing anyone can do once our government decides on something but to accept it. This is the way of the Sillyporeans...

[wllm33]

think this is a good indicator for those seriously thinking of going into the aquarium trade.
if you invest so much into the business with all the infrastructure and all, and then when the 10 yr lease is up , you only have about a few years to make back, and then they take back the land, and you have to use all your hard earned money through the years of toil to re-invest into a new place to start all over again.

so do you really earn any money at all when you go full circle.
serious problem. actually this has been known for a while , the jln kayu farms.
next will be the pasir ris ones, only a few years left. hobbyists beware.

[Shadow]

move the farm to Malaysia. Im sure Malaysia goverment will be happy, imagine $100 million annually

[wllm33]

ya, our loss is their gain.
seems to be getting more and more familiar nowadays.
somebody forgot to plug the drainage hole under the island.

[blackconvoy]

all in the name of technology, in future we all keep fish in tanks like facebook's

[StanChung]

yes- move to Johor- plenty of land. Welcome welcome!
First water now land. Time is up!

Might be a million dollar industry but if compared to a billion dollar industry that takes up less space then all will close shop.

[wllm33]

think we better keep virtual fishes now.
plenty of bytes in the internet world.
no problem with taking back the land unless website provider folds up

[Shaihulud]

think this is a good indicator for those seriously thinking of going into the aquarium trade.
if you invest so much into the business with all the infrastructure and all, and then when the 10 yr lease is up , you only have about a few years to make back, and then they take back the land, and you have to use all your hard earned money through the years of toil to re-invest into a new place to start all over again.

Does reminds me of the situation when SLA designated Punggol as a "pig farming area" and changed their minds later. Many farmers who moved there or invested in high tech equipment to meet standards were burnt, it was profitable business as well, but propably doesn't fit in with the governments idea.

[blue33]

In fact most time the local bring the stuff from Malaysia and export it to other country, locally is just a resting place only, farming wise and hard work still in neighborhood country, it doesnt affect alot. Look at QianHu, most time they only do packaging more than farming here. Here more and more into research and exporting as high tech thing and resource is more easily acquire over here.

[iwishweallcouldwin]

In fact most time the local bring the stuff from Malaysia and export it to other country, locally is just a resting place only, farming wise and hard work still in neighborhood country, it doesnt affect alot. Look at QianHu, most time they only do packaging more than farming here. Here more and more into research and exporting as high tech thing and resource is more easily acquire over here.

I agree with you bro. I guess its all about comparative advantage. We can never compete with neighbouring countries in terms of labour costs.