MALAYSIA: Expensive Arowanas, or "Dragon Fish", high in demand but low in supply, prove a good catch for Malaysian investors

Record ID: 595685

  • Title: MALAYSIA: Expensive Arowanas, or "Dragon Fish", high in demand but low in supply, prove a good catch for Malaysian investors
  • Date: 8th March 2012
  • Summary: KUALA LUMPUR, MALAYSIA (MARCH 5, 2012) (REUTERS) EXTERIOR OF AROWANA SHOWROOM AROWANA SWIMMING IN TANK CUSTOMER LOOKING AT AROWANA PRICE TAG OF GOLDEN FOREHEAD AROWANA READING: "RM 13,888" ($4600 USD) AROWANA IN TANK AROWANA OWNER, LEONG YOKE PING, PREPARING TO FEED HER PET MEALWORMS FOR AROWANA LEONG FEEDING THE FISH AROWANA SWIMMING IN TANK (SOUNDBITE) (Mandarin) 37-YEAR-OLD AROWANA OWNER, LEONG YOKE PING SAYING: "After we bought the fish (my husband's) business has become better, work started pouring in, and things are okay and smooth. It also brought a small fortune to me." BUKIT MERAH, PERAK STATE, MALAYSIA (MARCH 6, 2012) (REUTERS) SIGN READING "AROWANA VENTURE" FISH FARM VARIOUS OF CONCRETE PONDS FOR AROWANA BREEDING WORKER HOLDING AROWANAS IN NET AROWANAS IN NET BUKIT MERAH LAKE CHIEF EXECUTIVE OFFICER OF AROWANA VENTURE BERHAD, MICHAEL LIU, LOOKING AT LAKE (SOUNDBITE) (English) CHIEF EXECUTIVE OFFICER OF AROWANA VENTURE BERHAD, MICHAEL LIU SAYING: "The demand is very huge, because, imagine if anywhere in the world, anyone who wants to buy an Arowana most probably come from these three countries (Malaysia, Singapore and Indonesia) so we see that there's a very huge market because supply is limited, the demand is very huge." TANKS CONTAINING AROWANAS AROWANA FRIES LABEL ON TANK WITH HARVEST DATE AROWANAS SWIMMING (SOUNDBITE) (English) CHIEF EXECUTIVE OFFICER OF AROWANA VENTURE BERHAD, MICHAEL LIU SAYING: "The main purpose is to purchase the broodstocks for the breeding and it's also allocated for other operational costs." DIRECTOR OF AROWANA WORLD BREEDING FARM ERIC CHOONG, CHANGING WATER IN FISH TANK VARIOUS OF FRIES WATER BEING TAKEN OUT FROM TANK AROWANA FRIES (SOUNDBITE) (Mandarin) DIRECTOR OF AROWANA WORLD BREEDING FARM, ERI CHOONG SAYING: "Normally we're cautious in choosing the broodstocks. The species we choose are of high genetic quality that results in higher birth rate." CHOONG PREPARING FOR CHIP INJECTION CHIP SOAKED IN STERILIZER ANESTHETIZED AROWANA VARIOUS OF CHIP BEING INJECTED INTO AROWANA CHOONG AND WORKER INJECTING CHIPS INTO AROWANA WORKER DETECTING CHIP WITH DEVICE
  • Embargoed: 23rd March 2012 12:00
  • Keywords:
  • Location: Malaysia, Malaysia
  • Country: Malaysia
  • Topics: Business,Environment,Industry
  • Reuters ID: LVA4YVC4SEMW7X0O27J57H4EOPDX
  • Story Text: Prized across Asia as a symbol of fortune, the Dragon Fish has now become a hot investment pick in Malaysia in line with surging demand for the Chinese good luck charm at a time of global economic uncertainty.
    The Arowana -- or most commonly known as "Dragon Fish" -- is an aquatic fish that dates back to 150 million years ago.
    Its agile body, sleek shiny scales and "whiskers" bear a resemblance to the Chinese dragon, and as such is hailed as a symbol of wealth, power and prosperity.
    Like many Arowana lovers, Leong Yoke Ping, who bought hers for 9,888 ringgit ($3000 USD), believes the underwater creature bestows luck on her family.
    "After we bought the fish (my husband's) business has become better, work started pouring in, and things are okay and smooth. It also brought a small fortune to me," said Leong.
    Asian Arowanas are highly sought after in Asian countries, especially in China, Hong Kong, Japan and Taiwan, due to its cultural value and scarcity in the wild.
    Indonesia, Singapore and Malaysia are the only three countries in the world to commercially breed the highly-prized fish for export.
    A single fish can fetch up to a hefty 50,000 Malaysian ringgit ($15,000 USD) depending on its breed and quality, making it a lucrative product for investors to cash into.
    "The demand is very huge, because imagine, if anywhere in the world, anyone who wants to buy an Arowana most probably come from these three countries (Malaysia, Singapore and Indonesia) so we see that there's a very huge market because supply is limited, the demand is very huge," said Michael Liu, chief executive officer of Arowana Venture Berhad, an Arowana-breeding investment firm.
    In northern Malaysia's Bukit Merah, about 300 kilometres (185 miles) from capital Kuala Lumpur, operator of this investment scheme aims to breed 500 Highback Golden Arowana in its natural habitat.
    This is in the hopes of boosting the birth rate of the fish.
    The breeding scheme allows investors to benefit from the sale of Arowanas by purchasing 10-year-termed undivided interest (UDI) investment lots at 2,500 ringgit ($830 USD) each.
    Liu added the majority of investors' money will go into buying fish stocks and cover the operational costs of the farms.
    "The main purpose is to purchase the broodstocks for the breeding and it's also allocated for other operational cost," said Liu.
    With a capacity to yield over 20,000 fish per year, the revenue that will be generated at the end of the investment term is estimated at 22.5 million ringgit ($7.5 million USD) - roughly 180 percent of the total initial investment.
    But breeders warn that tending to the fragile species could be tough.
    Breeders who coordinate with the venture company check on the fish every 56 days to extract fertilised eggs from the male Arowanas' mouths before releasing them into a special container before the fish hatch, to minimize the mortality rate.
    They also follow stringent procedures to make sure all fishes are genetically healthy to produce next generation.
    To keep track of each fish, breeders insert an identity chip into the fish, to keep records on their health and history.
    "Normally we're cautious in choosing the broodstocks. The species we choose are of high genetic quality that results in higher birth rate," said Eric Choong, director of Arowana World Breeding Farm.
    Asian Arowanas have an average lifespan of about 30 years.
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