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PROPOSE TIMBER EXTRACTION, PROCESSING, EXPORT AND LAND DEVELOPMENT IN LIMBANG AREA, SARAWAK
LIST OF CONTENT
1. EXECUTIVE SUMMARY 2. BACKGROUND 3. PROPOSE TIMBER EXTRACTION 4. PROPOSE LAND DEVELOPMENT 5. CONCLUSION 6. ATTACHMENTS: I. COMPANY REGISTRATION & FORMS II. DESIGNATED AREA MAP III. LETTER OF UNDERTAKING
1.0
EXECUTIVE SUMMARY
Devine Returns Sdn. Bhd. has been incorporated on 19 September 2010 with the main objective to explore and maximize the returns from the available resources. The company is a collaboration of the land owners and the prospect investors to explore and generate as much possible revenue from the nature resources awarded to the native land owners. Racha anak Urud that hold 30% of the share in the company is the legal representative of the various native land owners has agreed to assign available resources they have to the company and in return they has agreed to a reasonable rate and mode of payment for the entire project implementation period. The land owner also has agreed that they will not participate in any manner during the timber extraction, process or exporting exercise. The said land area is 250,000 acres thus the timber extraction and the palm oil plantation project will be carried out in 5 phases which cover at least 50,000 acres per phase for estimated period of 8 years on each phase. The timber from the Limbang, Sarawak is expected to be extracted within reasonable period of 20 to 30 years while the palm oil plantation will be carried out in phases according to the land clearing exercise. The expected income from the timber extraction is at RM15 Billion and the Palm Oil plantation is expected to generate at least RM750 Million a year after the fifth year of the plantation. The leasing period for the palm oil plantation has been agreed to be 60 years or two planting cycles. Investors are hereby invited to participate in this project on joint-operation basis and the brief working mechanisms are as below: a) The initial investment expected from the investor for the Phase One is at RM27.5 Million to cater for the payment to the respective authorities, parameter survey, construction of facilities such as access roads, sawmill, jetty and partial payment to Devine Returns shareholders. The investment expected from the investor for the following phases is at RM25 Million for every phase giving a total of investment from the investor as at RM127.5 Million or 51% from the total value of the land of RM250 Million based on the average land value of RM1,000 per acre. The joint-operation will be based on the share proportion of 51% and 49% for the investor and Devine Return respectively for the entire timber extraction project. The share proportion for the investor for the palm oil plantation will be maintained while 10% the Devine Returns proportion need to be given to the STIDC based on the present regulation. Therefore the share proportion during the Palm Oil plantation will be 51% to investor, 39% to Devine Return and 10% to STIDC.
b)
2.0
BACKGROUND
Devine Returns Sdn. Bhd has been incorporated on 19 September 2010 with main objective to maximize the resources returns and utilizations to benefit the shareholders especially the land owners. The company is a collaboration of the land owners and the prospect investors which share mutual aspiration and efforts to explore and generate as much as possible revenue from the nature resources awarded to the native land owners. After series of discussions between the parties involved in this project, the land owner has agreed to participate in the project to develop the designated land belongs to them with the main intention to extract, process and export the timber available within the area and to carry out palm oil plantation project for a certain agreed period. The company shares holding for the timber extraction, process and export project has been agreed as Nor Azmi bin Wahab, Racha Anak Urud and Ghazali Md. Amin will hold 60%, 30%, and 10% respectively. Nor Azmi as the main coordinator is expected to source for the necessary resources for the timber extraction, process and. Ghazali is indentified as the representative of the other relevant parties for the execution and completion of the exercise. The land owner has agreed to assign the designated land belongs to them under the native land area scheme which is within the area of Limbang in the 5 th Area of Sarawak to the company and in return they has agreed to receive a reasonable rate and mode of payment from the project. They will remain holding the 30% share throughout the entire project period but will not in any manner interfere or involve in the management of the company during the implementation of the project. The agreed period for the timber extraction, process and exporting is between 20 to 30 years or any other proposed period while the expected period for the palm oil plantation is 60 years. The timber extraction will be done in 5 phases with 50,000 acres in every phase while the palm oil plantation will immediately be carry out once the land has been cleared. The expected shareholding of the company for the palm oil plantation is expected to be 51% holds by the investor, 39% by Devine Return and 10% by STIDC. The investor is also requested to propose for the rate and mode of payment to the land owner during the palm oil plantation project. The objective of this paper is to invite the interested investor/s to participate in the said project which expected to generate revenue of RM15 Billion from the Timber Extraction and RM45 Billion from the palm oil plantation.
3.0
Based on the investment made, the share proportion and the expected revenue to investor from the timber extraction can be tabulated as below:
INVESTMENT BY INVESTOR (RM MILLION) 27.5 25.0 25.0 25.0 25.0 127.5
EXPECTED REVENUE TO INVESTOR (RM BILLION) 1.53 1.53 1.53 1.53 1.53 7.65
On actual fact, the investor will only need to invest RM27.5 for the entire project as the investment for the 2nd phase onward can be withdrawn from the revenue generated during the first phase. Considering the total operational cost for the timber extraction is 30% from the total revenue, the net profit from the investment to the investor is expected to be RM5.36 Billion.
4.0
4.0
CONCLUSION
INVESTOR/S ARE INVITED TO PARTICIPATE IN THE TIMBER EXTRACTION, PROCESSING, EXPORT AND PALM OIL PLANTATION PROJECT IN LIMBANG, SARAWAK AREA WHICH EXPECTED TO GENERATE NET PROFIT TO THE INVESTOR OF NOT LESS THAN RM7.65 BILLION FOR THE TIMBER EXTRACTION EXERCISE AND RM6.12 BILLION DURING FOR THE PALM OIL PLANTATION.