MALAYSIA - The Bio-Desaru bio-agricultural project in Tanjung Balau, Kota Tinggi is set to move forward with RM236 million (SGD96 million) in investments from seven companies.

Confirmed investments are expected to draw earnings of more than RM85 million annually from the fifth year of operation.

Johor Menteri Besar Datuk Abdul Ghani Othman said the companies would be running an integrated herb and vegetable garden, a pepper plantation and Arowana fish and goat farms.

"The companies will be using the latest techniques in biotechnology, such as microbe and tissue culture, embryo transfer and applying the biomass concept, to name a few.

"Their activities and operations will be carried out in stages over an area measuring 711ha," he said during the state assembly yesterday.

Replying to questions by Datuk SamsolBari Jamali (BN-Semarang) and Hamimah Mansor (BN-Penawar), Ghani said preliminary work had begun on the Bio-Desaru Organic Food Valley -- the first big-scale organic food farm in the country -- such as an enviromental study, demarcation and earth-cleaning works and basic infrastructure.

"Access roads to the southern part of the area have been completed and in the meantime, water and electricity supply will be connected to allow investors to begin their operations."

Negotiations are also being held with 10 other companies which have expressed interest in investing in the project.

It is estimated that the 10 potential investors will bring in RM800 million.

"They will be involved in producing beef and dairy products, aquaculture fry and salt-water fish products," he said.

The 10 companies are likely to earn RM1.5 billion annually after four years.

"The Bio-Desaru project is one of the state government's efforts in applying the latest green technology, such as biomass recycling and the control of organic pests.

"This project will also improve our food security and reduce our dependence on food imports."

--NST