Feasibility study of setting up a sago starch manufacturing plant for PTC SBN. BHD.
1987
Nawawi bin Ibrahim
Findings and assumptions in the production, marketing and financial aspects made the project viable and attractive. The proposed plant will have an installed capacity of 1.5 MT per hour similar to that of the three leading manufacturers. However, it will only operate on one shift unless further market development and demand necessitate more. Modern technology is considered ideal as it has been successfully used by the three leading manufacturers in the State. On the average, the project will yield a gross profit of 55.21% per annum. The average net profit to sales per annum would be at 37.04% if locational incentive is granted and at 21.80% if Investment Tax Credit is extended by the government instead. These financial returns are considered favorable. Aside from elaborating on the attractive financial returns, a number of socio-economic benefits accrued from the establishment of the proposed plant are also outlined. Among them are in the form of employment generation, and participation in industrial development.
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