| Abstrak/Abstract |
Before implementing the massive production of stingless honeybees in order
to increase honey yields, the viability and future sustainability of the stingless bees
project should be carefully appraised. The objective of this study is therefore to assess
the financial projections and simulate the risk factors that may affect future growth
projections of stingless bee farming. The study uses capital budgeting techniques and
sensitivity analysis scenarios, tax obligation and tax incentives. The findings showed that
the stingless bee farming project in Malaysia is financially viable, highly-profitable and
can swiftly recover its initial investment. Specifically, the farms on the Peninsular have
high projected cash earning capacity, while more efficient farming and less project risks
are seen in the Sarawak region. Additionally, if tax obligations are imposed, all indicators
of financial appraisal have shown to be still attractive and the results are more lucrative
with the application of tax waivers. Furthermore, the project would not be impacted in the
change of hive prices and labour costs, indeed the farm is economically sustainable. The
main concern should be changes in selling price as these are a considerable drag on the
future appraisal of the project. |
