The Business of Asian Arowana in Singapore, by LSK

The Business of Asian Arowana in Singapore

An interview with Mr.Kan, CEO of Panda Aquatics; by LSk (arowanaclub.com)

Aquarticles

The Business of Arowana in Singapore

Background

Mr. Kan is well known in Singapore as one of the pioneers and leading authorities in Arowana keeping. In fact, Panda Aquatics is to date, one of the most successful arowana-breeders in Singapore (especially of 1st grade red arowanas, red tail gold arowanas & the high-back gold varieties).

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Mr.Kan, CEO of Panda Aquatics

Being a shrewd businessman with many years of keeping arowanas, Mr. Kan only ventured into breeding arowanas after observing the market for a long time. A lot of homework was done prior to his investment in breeding arowanas.

Q: How did Arowana first become popular in Singapore?

While the younger hobbyists might not be aware how arowanas became popular in Singapore as a pet fish, the older hobbyists might be able to recall that it was actually SM Lee Kuan Yew who gave arowana it’s popular status in Singapore! The story goes like this: during a visit to Indonesia, the former PM marveled at the magnificent fish, that was to be known as the Arowana or Dragonfish because of its close resemblance to the Chinese dragon. Consequently, Singaporean businessmen became very interested in keeping arowanas because it was thought to be auspicious and good for the fengshui. This trend caught on and moved to Malaysia, Japan, Taiwan and slowly to the rest of the world, to any place where there is a Chinese community present.

Q: Why did Mr Kan venture into commercial Arowana breeding?

Mr. Kan realized that Singapore one of the best places to breed arowanas and believes that the arowana is an equatorial fish, not a tropical fish as perceived by many. In fact, Mr. Kan believed that arowana thrives and breeds in places on the same latitude as Singapore. Listed as an endangered species, the arowana population in the wild is too limited to meet the market demand. Therefore, Mr. Kan saw the great potential in arowana-breeding as a business. Despite the potential monetary rewards in successfully breeding arowanas, he remained skeptical. What if other people started breeding arowanas in captivity? Will there be an over supply resulting in arowanas becoming junk fish and a passing fad? Mr. Kan waited longer to observe the market.

Earlier, in the mid 1970’s, 2000 pieces of arowanas were shipped for breeding in Thailand but that turned out unsuccessful. Since then there were a few reports of successful arowanas-breeding in fish tanks, but those were isolated cases and no repeated successes were recorded again. Convinced that he will have a headstart in breeding arowanas and that the prices for arowanas will not plunge, Mr. Kan made preparations to start Panda Aquatic in 1993-94.

Q: Are Arowanas from Singapore are inferior?

It is a common belief that 1st grade red arowanas from Singapore are inferior compared to those from Indonesia. To Mr. Kan, all red arowanas originated from the same souce and hence are the same. Singapore was one of the first markets for arowanas and later she became a re-exporter. Singapore was then known to receive some of the best fishes from Indonesia while the crumbs went to other markets.

Q:So why is there a difference in the arowanas we see here as compared to those exported to Taiwan and Japan?

According to Mr. Kan, “Farmers’ loyalty are to distributors and locals; Traders’ loyalty are to profits (especially overseas).” In short, while farmers do their best to produce enough for the demand, still, the buyer with the highest bid will get the best fishes and Singaporeans do not have the habit of paying good money for fishes. However, the trend is now changing as better quality arowanas can be seen in Singapore because Singaporeans are more willing to pay for the better quality arowanas.

Panda prides itself that it does not discriminate or grade its arowana like such. This meant that any buyer can get a very good quality arowana at the same price if he knows how to choose! Mr. Kan was however quick to admit that buying from a re-seller has its advantage because the arowanas are pre-selected through the re-sellers’ experience.

He also believes that no matter how much the local farms can produce, it can never match the ever increasing demands. This is evident from the average sizes of the arowanas that are put on sale. The sizes of the arowanas that are sold are smaller now and in fact, Mr. Kan revealed that buyers are making reservations to buy arowanas even before they were hatched from eggs!

Q: What contributed to his success in the commercial arowana breeding?

Mr. Kan believes in building a strong foundation for his business and he does this by doing what he is best at doing. He capitalizes on his strengths and doesn't attempt on what he has no confidence in doing or doing any of those ‘fly-by-night’ deals. This is probably why people who had business dealings with him will come back with even more referrals and businesses.

Q: What is the proxy farming programme that was initiated by Mr Kan a few years back?

While Mr. Kan is one of the first to breed arowanas commercially, he is the pioneer in a new concept in arowana farming, known as proxy farming. What is proxy farming? In short, it is the venture by the farm (Panda Aquatics) and any hobbyist to breed arowanas in the premise and facilities of the farm.

The individual will provide the arowanas while Panda will provide the breeding facilities and expertise. Why go through farm when anyone can breed arowanas on their own? Well, breeding arowanas is not as easy as it seems because:

1. the difficulties in obtaining approvals from Cites and relevant authorities since arowana is an endangered species;

2. it is not easy to breed arowanas even in farm with all necessary facilities.

Proxy farming will however provide the following advantages:

1. Panda can increase its supply of arowanas from the direct increase in mature arowanas ready for breeding;

2. sharing of burden and spreading of risks from Panda to the hobbyist;

3. hobbyist gains experience and joy of breeding arowanas;

4. hobbyist learns from process of breeding which saves costs and time;

5. hobbyist need not apply for permit since Panda is already licensed to breed arowanas;

6. both parties can make money ins this win-win situation!

Q: What are Mr Kan’s thoughts on the future of commercial arowana breeding and the internet?

The future of the commercial breeding of arowana looks bright, but it must evolve to improve itself constantly and consistently. Mr. Kan cited a few important factors: 1. to use the internet to promote the hobby as well as to educate the general public on keeping arowanas;

2. to maintain high standards in the management of internet based forums to educate the public on keeping arowanas;

3. to improve the quality of photographs that are posted in the photo galleries of internet based forums so as to show the world the beauty of arowanas. This would therefore require hobbyists to share and improve their photography skills;

4. to organise more arowana-competitions to promote the hobby.

Finally, we would like to thank Mr. Kan for taking time out from his busy schedule to share with us his insights on breeding arowanas. We hope to interview him again soon for we have still much to learn from the one of the very few who succeeded in commercial arowana breeding!

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