Despite the persistent bearish sentiments in most of our businesses, FY2017 has also been an exciting year for the Company. On 22 June 2016, the Company&rsquo s whollyowned subsidiary, MEG Management Sdn Bhd, (&ldquo MMSB&rdquo ), has embarked into a project to build and manage a microalgae oil cultivation facility (the &ldquo Microalgae Project&rdquo ) in Selangor, Malaysia.

Developing algae-based renewable energy at commercial levels will provide a number of tangible benefits. First of all, the process of cultivating microalgae emits fewer greenhouse gases than most conventional energy source, hence, reducing our carbon footprint. Secondly, algae can be cultivated on both industrial lands and on lands which are unsuitable for ordinary crops and with low conservation value. Thirdly, by-products from the process of extracting the microalgae oil can be utilised in numerous different applications in other industries. Some of the possible by-products include antioxidants, proteins and other compounds. These can be used in the production of cosmetics, health products and animal feed, as well as other various uses.

We have had a fruitful meeting with delegations from Malaysian Investment Development Authority (&ldquo MIDA&rdquo ), who was in Singapore with the Malaysian Trade Minister on 24 May 2017. On 25 July 2017, MMSB received an in-principle approval from MIDA on our application for up to 70% reduction of corporate income tax. We are very encouraged and thankful with the level of support that MIDA is providing.

Thus far, we have made payments totaling US$8.3 million for the constructions and machines. We are pleased to inform our shareholders that the facility is about 65% completed, and we are expecting the completion timeline to be in the second quarter of the Group&rsquo s financial year FY2018.

Currently, there are 500 cultivation tanks on the site. On the condition that the Microalgae Project is successful, Magnus intends to expand our cultivation plants from its initial projected capacity of 1,500 tanks to 2,400 tanks. This may increase our annual production from approximately 5,400 metric tonnes (&ldquo MT&rdquo ) to 8,700 MT.