The profusion of cheap labor and land continues to reduce the incentives for investors in Southeast Asian seafood producing locations like Indonesia, according to Jimmy Lim, president of the Institution of Aquaculture Singapore, and a prominent shrimp farmer in the city-state.
“Foreign aquaculture investment in technology is slim, even though the home market for aquaculture like Indonesia is strong,” Lim told SeafoodSource. “Labor [is] plentiful and land is cheap in Indonesia … These are factors that limit the investment in high intensity aquaculture.”
By contrast, Lim said he sees potential in efforts by Singapore to encourage aquaculture research and development as a means of safeguarding the country’s future food security. Concerned about future food security in the context of climate change, Singapore has set a goal of growing 30 percent of its own seafood needs by 2030, up from 10 percent currently. To achieve the target, it’s offering funding to aquaculture companies, increasing the incentives for firms to locate R&D and production locally. The city state’s available sea water-space is limited, forcing companies to innovate in both efficiency and productivity gains will be required to increase current output.
Government schemes include a cash advancement fund, which can advance 30 percent of a company’s costs, as well as an agriculture productivity fund. Singapore’s government is also encouraging local producers to expand overseas too, Lim said, pointing to Singapore-based Barramundi Asia expanding into Brunei, and sees others building aquaculture projects in Australia. Likewise, his own firm produces shrimp in Indonesia, Malaysia, Thailand, and China. Additionally, Lim has partnered with a Thai firm to promote aquamimicry technology – a natural method of reducing pathogens in shrimp farming by turning sludge into consumable biomass – to markets across Asia.
Lim said he thinks Singapore's geographical position encourages healthy exchanges in the promotion of trade and services.
“Our efficient stable government, together with our excellent air hub and seaport and our hardworking, productive labor force in the logistics industry, give us a plus over many neighboring countries,” he said.
Photo courtesy of Lim Shrimp Organization
