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The application of risk analysis to the project appraisal of stingless bee farming in Malaysia for sustainability

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...

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Main Authors: Abdurofi, Ilmas, Ismail, Mohd Mansor, Ismail, Normaz Wana
Format: Article
Published: Universiti Malaysia Terengganu 2021
Online Access:http://psasir.upm.edu.my/id/eprint/95335/
https://jssm.umt.edu.my/?page_id=4872
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spelling my.upm.eprints.953352023-02-03T08:20:42Z http://psasir.upm.edu.my/id/eprint/95335/ The application of risk analysis to the project appraisal of stingless bee farming in Malaysia for sustainability Abdurofi, Ilmas Ismail, Mohd Mansor Ismail, Normaz Wana 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. Universiti Malaysia Terengganu 2021 Article PeerReviewed Abdurofi, Ilmas and Ismail, Mohd Mansor and Ismail, Normaz Wana (2021) The application of risk analysis to the project appraisal of stingless bee farming in Malaysia for sustainability. Journal of Sustainability Science and Management, 16 (6). 109 - 122. ISSN 1823-8556; ESSN: 2672-7226 https://jssm.umt.edu.my/?page_id=4872 10.46754/jssm.2021.08.009
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
description 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.
format Article
author Abdurofi, Ilmas
Ismail, Mohd Mansor
Ismail, Normaz Wana
spellingShingle Abdurofi, Ilmas
Ismail, Mohd Mansor
Ismail, Normaz Wana
The application of risk analysis to the project appraisal of stingless bee farming in Malaysia for sustainability
author_facet Abdurofi, Ilmas
Ismail, Mohd Mansor
Ismail, Normaz Wana
author_sort Abdurofi, Ilmas
title The application of risk analysis to the project appraisal of stingless bee farming in Malaysia for sustainability
title_short The application of risk analysis to the project appraisal of stingless bee farming in Malaysia for sustainability
title_full The application of risk analysis to the project appraisal of stingless bee farming in Malaysia for sustainability
title_fullStr The application of risk analysis to the project appraisal of stingless bee farming in Malaysia for sustainability
title_full_unstemmed The application of risk analysis to the project appraisal of stingless bee farming in Malaysia for sustainability
title_sort application of risk analysis to the project appraisal of stingless bee farming in malaysia for sustainability
publisher Universiti Malaysia Terengganu
publishDate 2021
url http://psasir.upm.edu.my/id/eprint/95335/
https://jssm.umt.edu.my/?page_id=4872
_version_ 1758579849026338816
score 13.211869

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