INTRODUCTION KETUTU TRADING SDN. BHD is an aquaculture business located in the town of Bandar Baharu district, Pulau Pinang.

It is based on the believe that the Malay people can be successful in the business field like the foreigner and the simplest example is the Chinese people that is said to monopoly the economic growth in Malaysia. By supporting the Malaysias government to realize the 2020 vision of being a highly developed nation in all field including the aquaculture field. In the year 2020, the fish price will increase and the demand for fish all over the world will increase. To ensure the fish demand in Asian market especially in Malaysia can be fulfill, we have developed a plan to open a fish farm in the district of Bandar Baharu to overcome this problem. From the analysis that had been done by the World fish Center and the International Food Policy Research, the shortage of fish will be catastrophic for over 1 million people around the world. With the support of government agency like FAMA, we had gain knowledge on how to open a fish farm and how to ensure that the fish farm is successful and reach our goal. The fish farm that we plan to run will bread fresh water fish like the keli, toman, ketutu, haruan and patin that has high market interest in and out of the country like China, Singapore and Taiwan. We had done a few researches on the fishes to ensure maximum profit.

-1-

Fish farm in Pulau Pinang in year 2005

Fish quantity depending on district of Pulau Pinang in year 2005

-2-

EXECUTIVE SUMMARY Our company is involved in the aquaculture field which is breeding of fresh water fish, where as the protein base food supplier or manufacturers are still low. We establish this company because the competition in this country is not so fierce and the product is food based which will always have a market. Other than that, the encouragement from the government to the Malay people to get active in the economic sector especially in the aquaculture field. The government support includes capital loan, and advice from related agency like FAMA. The name of the company, KETUTU TRADING SDN. BHD is taken from a name of a fish that we breed. The company consists of four CEO in a partnership. All of the CEO can make decision but by vote. Our company breeds and sells a variety of fish like the fresh water catfish, Goby, River Catfish. All of these fishes that we breed has high market price in Malaysia and oversea. Among the country that will be our target market are Taiwan, China and Singapore. The reasons why we choose these country is because the majority of it people eat fish that we will breed everyday. The capital is collected from the loan from the bank and money collected from the entire partner. We choose Bank Pertanian Malaysia because it provides loan for entrepreneurs that want to start business in the agriculture and aquaculture field. The interest is low and the terms and regulation are not of a burden. The entire partners have to give at least RM40, 000 to RM50, 000 each as the capital. The shyer is determined by the capital given by each partner. The technique that we use is to take the egg from the male fish and the it is injected into the female fish. This method is chosen because the percentage for the egg to be successfully fertilized is very high. This will ensure the fish will never be out of stock. This method is used for all the fish species. The fish are feed with standard fish food and will be given vitamin once a week.

-3-

By the helped of FAMA agency, we will be guided along our work to ensure the product that we produce will have high quality and can be marketable. The agency also helps us in determining the kind of fish that we will breed and the market price for it. Beside from our own researches on the market out side of this country, we will be helped by another company that runs similar business in Kedah. FAMA and Tali Air unlimited will also help us in the setup of our company like the kind of food for the fish, the natural environment of each fish and how long does it take to breed the fish. After a discussion between all the shyer member and comparing the data we have, the breeding center will have about 30 fish pond and 6 pond for each 5 species of fish. The pond will be setup according to the natural habitat of the fish. The company will be managed by the shyer holder. Around 8 worker is needed to manage all the pond and maintaining the quality of the fish. The entire worker will be given a basic of RM 700 a month depending on the post. They will also be a hostel complete with the gas, water and electricity.

-4-

PURPOSE OF A BUSINESS PLAN

LOAN APPLICATION -To get enough capital to start our business other than from own saving, we will apply for a loan of RM 50,000. We choose Bank Pertanian Malaysia because we plan to apply for long term payment plan.

NEW PROJECT PLAN -We plan to open a new branch after 3 year at a new area like Pahang because the area has not been explored yet. By doing so, the companys profit will increase an estimated 20 percent. GUIDENCE FOR PROJECT MANAGEMENT -For managing the company, we will be helped by a government agency called FAMA. They will help us by supplying us with the information needed to manage the farm such as the fish health, environment and market price.

-5-

BUSINESS BACKGROUND

Company name Address. Registered no Business status Registered date Tel no/Fax Email Bank information

: KETUTU TRADING SDN .BHD : 1080, Sungai Kerian, 11700 Bandar Baru, Kedah : A 326534 : Partnership : 1 July 2007 : 04-6854744 : 04-6854743 : KETUTU@ STREAMYX. COM : Bank Pertanian Malaysia

Vision To expand business to other states of Malaysia and other country. To have customers that came from different type of races.

Mission To give the best services to the customers To have income up to RM 50,000 per month. To be able to perform in excellence to both parties, either to suppliers or customers. To ensure that the qualities of the appliances sold are at the same par with the prices provides.

-6-

LOGO

-7-

PARTNERS BACKGROUND Partners 1 Name Ic no D.O.B Age/gender Tel no Academic qualification Courses Attended Skills Working Experience : Mohd Azri hafie bin Mohd Azaha,Bh : 690314-06-5173 : 14.03.1969 : Male : 013 9701468 : B.H Management : business study in UUM : can communicate with people : worked as assistance manager at Jaya Holding for 5 years, work at FELDA agency as the manager for 7 years.

Partners 2 Name Ic no D.O.B Age/gender Tel no Academic qualification Courses Attended Skills Working Experience : Shahhir bin Yaacob : 830326-08-5841 : 26/03/83 : male : 013-4902782 : diploma in aquaculture at UM : fish breading at UKM : can communicate in English language : worked for 2 years at FAMA Agency

-8-

Partners 3 Name Ic no D.O.B Age/gender Tel no Academic qualification Courses Attended Skills Working Experience : Ahmad Saifuldin bin Abdul Ghani : 730529-08-6465 :29.05.1973 : Male : 017-5600294 : B.B.A Bussiness Study : Management : Line leader : Worked for JetSet Trading 4 years

Partners 4 Name Ic no D.O.B Age/gender Tel no Academic qualification Courses Attended Skills Working Experience : Shamsul Rizal Bin Aminudin : 851031-06-5719 : 31/10/1979 : 28 / male : 017-4517787 : Bachelor in Business Adminitration : Business administration : accounting : works 3 years at MARDI

-9-

ADMINISTRATION PLAN Organization chart & structure

President Mohd Azri Hafie

Production manager Ahmad Saifuldin

Marketing manager Shahir

Administration Manager Shamsul Rizal

Quality Control Yusoff

Sales Zulhisham

Finance Kamarul

Purchasing Asyraf

Promotion advertising Latipah - 10 -

Shipping/ receiving Siti Sarah

Function & responsibility 1. President: head of a company Making sure the company is stabile Have the power to execute thing in a company 2. Production manager: Making sure the production went well Control the raw material a) Quality Control: Monitor the quality of the product

3. Marketing Manager: Find the market Find a way to increase market a) Sales: 1. Making sure the sale increase Increase the market

Promotion/advertising Promoting the product

- 11 -

Administration manager: Controlling he money flow in the company Controlling the admistration of the company Making sure the company runs smoothly 1. Finance Control company acount Control asset Control company liability shipping/receiving control all the thing about ligistics

Purchasing Control all the thing about purchasing and selling goods to the customer

Management strategy To achieve companys product in short term and long term. Make sure our customers are satisfied with companys product. Increasing quality product follow the customer needed.

- 12 -

MARKETING PLAN The marketing strategy was designed on the basis of personal interviews conducted with customers and fish monger in Malaysia and most of the Asian country which represents our target market. These interviews indicated that the individual preferred buy local like the fresh water catfish, Goby, River Catfish and other types of fishes that are easier to breed in Malaysia but not in other country. The majority of these individuals commented that they prefer Malaysias fishes because they can be found all around the year and it has more nutrition. We planned to open our headquarter in Selayang, Selangor because it is near the international airport and near port Klang. This way we can deliver the goods faster and can provide option to the customer on the goods transportation. The main reason is because most of the fish monger is located there and we can sell the fish to the growing hotel industry around the headquarter as a potential customer. MARKETING GOAL To meet the growing needs of a target market defined o the basis of geography, demographics, lifestyle, and buyer attention. To evaluate the competitive environment and continue to establish a differential advantages. To establish an effective and profitable marketing mix of place, price and promotion. MARKETING OBJECTIVE To establish a customer base of 10 percent of the defined target market in the first year.

- 13 -

To generate RM 100 000 in sales for the first year. To increase sales by 10 percent annually for the first three years. To expand at least two new locations by the end of the first three years.

Workers managing one of fish pond

Adult fish pond feeding time

SIZE OF MARKET - 14 -

According to our researches, our target markets are at the capital of China, Malaysia, Taiwan and Singapore where the density of people are about 1 million and above. From this 1 million of these people, about 80 percent of these individual match our target market. On the basis of the above information, it is estimated that the potential market is between 500,000 and 800,000 people. Our objective is to reach 10 percent of the primary market and 5 percent of the secondary market. No of people Cost estimated Market size : 10,000 people : RM 20/KG : 10,000 20 : RM 200,000.

MARKET SHARE Competitor Market size Market share : 10 : 200,000 10 : 20,000 : 20,000/200,000 100% : 10 percent

FORCASE CHART

- 15 -

PRICE Pricing strategy is based on the type and weight of the fish. This strategy was determined from an evaluation of Tali Air Unlimited, a similar business located in Ulu Yam, Kedah, as well as marketing research study of the market. The price will be based on the amount of fish and types as well as the transportation method. Air transport will be priced higher than the water transport because the time gap is smaller than using a ship.

- 16 -

PRODUCT VS CUSTOMER 1. To fulfill the need of the customer, we have planned to breed a variety of fishes following the market trend. 2. We also provide catalog of types of fish that is breed in our pond. 3. Provide fresh fish and also processed fish according to customer needs.

STRENGTH We provide a variety of fishes for the customer to choose and our variety of fish are different from others company doing the same business. Other than that, we provide fresh fishes to the customers because of our strategic delivery plan. We can supply needed fish stock throughout the year because of the breeding method that we use ensure the fish will breed throughout the year.

- 17 -

Variety of fish as our product

WEAKNESS Because our product is aquaculture base, we cannot control the natural disaster like flood and diseases but we can take preventive measure like building a dam and intensive care of the product by giving the fish vitamins and antibiotics. The market is also a weakness to us because it is not fixed. The market price is determined by the customer it self. OPPORTUNITIES Because the aquaculture is still new I this country, there is still not much competitor in the market. Even throe there is a few fierce competitor, they are still not strong in the market. If our company develops a strategic promotional plan like maintaining a good relationship with the customers and some improvement along the way, we will become a strong competitor in this new field. We also have support from the government that realizes the profitable field of aquaculture to the country and individual.

- 18 -

THREAT The main threat in this business is natural disaster because the insurance company does not cover for natural disaster. The politic also concern us because we export our good to other country. If the connection between the two countries is not good, there is a chance that our product will not be marketable in that country.

- 19 -

RESEARCH AND DEVELOPMENT (R&D) We have collaborated with the FAMA agency to find the best breeding method and have made the decision to use bromen. By using this technique, the productivity of the fish will increase to the maximum limit and disease like fungus infection will be reduced. We also did researches on the breading Marketing strategy

Advertising will include newspaper ads, radios sports, an internet Web page, and directmail brochures. All four will precede start-up. A series of teaser newspaper ads will be run prior to start-up, announcing a revolution in fish breading. A start-up, the new paper ads will have evolved into actually introducing the product, and radio spots will begin as well. A heavy advertising schedule will be used during the first four weeks of business. After start-up, a direct mailing will detail the descriptions of the quantity and types of fish. Newspaper ads aimed at the target markets will be placed in entertainment and business section. Radio sport will be geared to station most appealing to the target market .since the company is new, it may be possible to do interviews with newspaper and obtain free publicity. Sales promotion will offer large discounts to first-time customer .these promotion will be continuing for first six months of operation. The fishes will be priced according to the types and weight and also how large the quantity is.

- 20 -

MARKETING BUDGET All the decision will be made by meeting with all the CEOs. The budget will include the budget for the promotion expenses, packaging method and delivery and also the inventory budget. MARKETING STRATEGY The marketing strategy is taken from Tali Air Unlimited, a company involved in the fish breeding business for 3 years. The strategy was to produce high quality fish in large quantity but the varieties of fish are limited. We take the same principle and implement it according to our need. Instead of keeping the same variety of fish, we change the type of fish and add the variety of fish to avoid competition. We also try to introduce new species of fish to the market.

The fish that inspire the company name

- 21 -

OPERATION PLAN Our fish breeding center is located Kedah. It is located near the Kerian River. This is because we can use the natural resource there like the river water. By using the river water, we plan to create a natural environment for the breeding ground. From the information given by the FAMA, the fishes will reproduce and grow faster if it is in the natural habitat. Because all the fishes are fresh water fish, this is an advantage for us to choose the location. By doing so, the productivity of the product will be higher.

MANUFACTURING OPERATION 1. The first step is to meet with the supplier of the fish food. 2. then, the new fish will be release into the breeding place according to its species 3. The fish will be monitor for the first 2 weeks. 4. half of the fish will be transfer to the adult pond for breeding 5. another half will be ready to be process and sell according to the customer needs 6. The finish product will be transfer to the customer place. 7. When the fish in the breeding pond has laid their eggs, the fish will be transfer to be process and sell. 8. After a week, the egg will hatch. 9. The newly hatch fish will be monitor constantly for a few weeks and then they will be transfer to the adult pond. 10. The cycle will be repeated until the fish is process and delivered to the customers.

- 22 -

RAW MATERIALS 1. fish food 2. fish breed EQUIPMENT 1. cage fishs 2. water pump 3. cutter fish 4. office equipment (computer, pens paper, file and other equipment) 5. scales weight 6. net fishs LABOR SKILLS 1. SUPERVISOR 2. CO-WORKER 3. QUALITY CONTROL SPACE

- 23 -

FINANCIAL PLAN KETUTU TRADING SDN BHD expects to raise RM200, 000 of its own capital, and to borrow RM50, 000 guaranteed by the BANK PERTANIAN as a three-year loan. This provides the bulk of the current financing required.

BREAK-EVEN ANALYSIS KETUTU TRADING SDN BHD Break-even Analysis is based on the average of the first-year figures for total sales by units, and by operating expenses. These are presented as per-unit revenue, per-unit cost, and fixed costs. These conservative assumptions make for a more accurate estimate of real risk. KETUTU TRADING SDN BHD should break even by the fourth month of its operation as it steadily increases its sales.

BREAK-EVEN ANALYSIS

Break-even Analysis Monthly Units Break-even Monthly Revenue Break-even Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost RM17,255 RM38,336

RM2.22 RM0.35 RM32,343

PROJECTED PORFIS AND LOSS

- 24 -

As the Profit and Loss table shows, KETUTU TRADING SDN BHD expects to continue its steady growth in profitability over the next three years of operations.

Profit and Loss Pro Forma Profit and Loss 2008 Sales $455,000 Direct Costs of $68,950 Goods Other $0 -----------Cost of Goods Sold $68,950 Gross Margin Gross Margin % $386,050 84.85%

2009 $550,000 $82,555 $0 -----------$82,555 $467,445 85%

2010 $680,500 $98,200 $0 -----------$98,200 $582,300 85.57%

Expenses Payroll Sales and Marketing and Other Expenses Depreciation Utilities Payroll Taxes Other Total Operating Expenses Profit Before

$151,200 $25,000 $60,000 $2,000 $40,000 $0 -----------$278,200

$220,000 $35,200 $69,000 $2200 $41,076 $0 -----------$367,476

$257,032 $40,460 $70000 $2,323 $42,000 $0 -----------$411815

$107,850 Interest and Taxes EBITDA $86,130 Interest Expense $10,000

$99,969 $127,083 $9,500 - 25 -

$170,485 $149,175 $8,250

Taxes Incurred Net Profit Net Profit/Sales

$3,111 $13,019 2.65%

$12,146 $36,437 6.43%

$15,650 $45,925 7.01%

PROJECTED CASH FLOW The cash flow projection shows that provisions for ongoing expenses are adequate to meet KETUTU TRADING SDN BHD needs as the business generates cash flow sufficient to support operations.

CASH Cash Flow Pro Forma Cash Flow

- 26 -

2008 Cash Received Cash from Operations Cash Sales $455,000 Subtotal Cash from $455,000 Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on $260,800 $143,607 $404,407

2009

2010

$550,000 $550,000

$680,500 $680,500

$0 $0

$0 $0

$0 $0

Liabilities (interest- $0

$0

$0

$0 $0 $0 $0 $455,000

$0 $0 $0 $0 $550,000

$0 $0 $0 $0 $680,500

2008

2009

2010

$273,840 $186,964 $460,804

$287,532 $237,731 $525,263

- 27 -

Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal $0 Repayment Purchase Other Current Assets Purchase Longterm Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $10,000 $15,000 $0 $0 $0

$0

$0

$0

$0

$0

$0

$0 $0 $0 $404,407

$0 $20,000 $0 $490,804

$0 $20,000 $0 $560,263

$86,593 $156,593

$76,301 $232,894

$94,744 $327,637

- 28 -

BALANCE SHEET The following is a projected Balance Sheet for KETUTU TRADING SDN BHD.

Balance Sheet Pro Forma Balance Sheet 2008 Assets Current Assets Cash Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable 2009 2010

$156,593 $12,000 $168,593

$232,894 $12,000 $244,894

$327,637 $12,000 $339,637

$65,000 $60,000 $5,000 $173,593

$85,000 $129,000 ($44,000) $200,894

$105,000 $208,350 ($103,350) $236,287

2008

2009

2010

$14,574

$15,438 - 29 -

$19,907

Current Borrowing $0 Other Current $0 Liabilities Subtotal Current $14,574 Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth

$0 $0 $15,438

$0 $0 $19,907

$100,000 $114,574 $110,000 ($64,000) $13,019 $59,019 $173,593

$90,000 $105,438 $110,000 ($50,981) $36,437 $95,456 $200,894

$75,000 $94,907 $110,000 ($14,544) $45,925 $141,381 $236,287

$59,019

$95,456

$141,381

BUSINESS RATIOS The following table represents key ratios for the fish breading company. These ratios are determined by the Standard Industry Classification (SIC) Index code 531, aquaculture field. Ratios

- 30 -

Ratio Analysis

- 31 -

2008 Sales Growth Percent of Total Assets Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term 0.00%

2009 15.50%

2010 15.50%

AQUAQULTUR Profile 7.60%

6.91% 97.12% 2.88% 100.00%

5.97% 121.90% -21.90% 100.00%

5.08% 143.74% -43.74% 100.00%

35.60% 43.70% 56.30% 100.00%

8.40%

7.68% 44.80% 52.48% 47.52%

8.42% 31.74% 40.17% 59.83%

32.70% 28.50% 61.20% 38.80%

57.61% Liabilities Total Liabilities 66.00% Net Worth 34.00% Percent of Sales Sales Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes 100.00% 84.37%

100.00% 84.37%

100.00% 84.37%

100.00% 60.50%

74.74%

71.43%

71.39%

39.80%

0.49%

1.76%

6.87%

3.20%

5.32%

10.24%

10.66%

0.70%

- 32 -

Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Accounts Payable

11.57 11.57 66.00% 27.33% 9.29%

15.86 15.86 52.48% 50.90% 24.18%

17.06 17.06 40.17% 43.55% 26.06%

0.98 0.65 61.20% 1.70% 4.30%

2007 2.65% 22.06%

2008 6.43% 38.17%

2009 7.01% 32.48% n.a n.a

10.79

12.17 29 2.82

12.17 27 2.77

n.a n.a n.a

Turnover Payment Days 27 Total Asset 2.83 Turnover Debt Ratios Debt to Net Worth Current Liab. to Liab. Liquidity Ratios Net Working Capital Interest

1.94 0.13

1.10 0.15

0.67 0.21

n.a n.a

$154,019 2.61

$229,456 6.11

$319,731 8.46

n.a n.a

- 33 -

Coverage Additional Ratios Assets to Sales 0. Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout 10% 11.57 8.32 0.00 0 10% 15.86 5.94 0.00 0. 10% 17.06 4.63 0.00 n.a n.a n.a n.a n.a

- 34 -

CONCLUSION For this planned business, we hope to improve in the marketing and financing. If the planned to be successful, we will further our effort to grow bigger and stronger. We plan to collaborate with another company either in the same field or in another field. In three years time, we plan to open at least two more breeding center, one in Malaysia and another one in a foreign country. We will also try to expand our export capability by exporting to a new country like Switzerland. To ensure our fish breeding center is manage successfully we plan to hire more experience worker that has the skilled and knowledge in the field of aquaculture.

- 35 -