Agro-technology is widening the scope of agriculture production in Malaysia

The Eighth Malaysia Plan (8MP) (2001- 2005) has put into place strategies to accelerate the performance of the agriculture sector.The sector is expected to register a higher annual rate of growth and contribute significantly to the country ’s economic development.To achieve growth with resilience,the sector was restructured and reoriented to increase productivity and competitiveness.

A major shift from small-scale,mono cropping and low technology farming to that of large-scale,integrated and high technology production is required.A greater involvement of the private sector and organized farming especially in food production is also necessary.To generate new sources of growth, activities and crops with commercial potential are developed,and greater linkages established with other sectors of the economy.

The thrust during the 8MP is to transform the agriculture sector into a modern,dynamic and competitive sector in line with the strategies of the NAP3. The main strategies for agricultural development for the

Plan period are:

� Expand food production substantially to meet growing demand with a view to reduce imports and increase export,

� Promote private sector participation in medium and large-scale commercial food production through the establishment of more permanent food production areas such as agrotechnology and urban horticulture parks as well as satellite farms,

� Intensify aquaculture development both inland and open sea,

� Intensify land use by enhancing a wider crop mix, integrating food production with plantation crops and promoting agro-forestry activities,

� Enhance competitiveness of agricultural produce by furtherpromoting cost and labor -saving technologies and accelerating downstream processing,

� Intensify R&D, particularly in yield improvements and development of more end-products from agricultural by products and waste,

� Consolidate oil palm hectarage to rationalize production and establish standards for Malaysian palm oil to increase competitiveness,

� Reorient rubber as a strategic crop supplying timber for the wood-based industry as well as latex for the rubber-based industry,

� Utilize natural resources, particularly forestry resources,on a sustainable and environment-friendly basis and promoting linkages with other activities such as manufacturing,eco-and agro-tourism

� Develop activities and crops with commercial potential including specialty natural products,other non-timber forest products,biotechnology products,floriculture and ornamental fish,

� Strengthen human resource development by promoting new skills such as those related to information and communications technology (ICT)and new technologies to generate skilled workers in line with the knowledgebased economy as well as by enhancing the skill and knowledge of agricultural frontliners,and Enhance the income of farmers and small-holders by strengthening support services,improving the delivery mechanism,increasing the accessibility of credits and establishing insurance coverage as well as increasing their direct involvement in downstream processing.

Under the 8MP,the agriculture sector is expected to grow by 3.0 per cent per annum (refer Table 1),compared with a growth of 1.2 per cent per annum in the 7MP.The improved forecast is attributed to aggressive implementation of food and other commodities production programmes.In addition,the intensification of land use,improvements in agronomic aspects, farming methods and management will also contribute to the growth.

However,commodities such as sawlogs and rubber are projected to experience a negative growth,as less forest will be available for logging in line with sustainable forest management practices (refer Table 2) and a decline in the planted hectarage for rubber.

Food Production

A wider adoption of new technologies and use of high yielding seeds and biotechnology will contribute to the increase in food production.Participation of the private sector in medium and large-scale commercial operations is enhanced through establishment of more permanent production areas such as agro-technology and urban-horticulture parks as well as satellite farms.

Fisheries

Fisheries production is expected to increase from 1.5 million tones in 2000 to 1.9 million tones in 2005,registering a growth of 4.2 per cent per annum.The potential of medium and large-scale aquaculture,both inland and open sea will be harnessed by establishing more production areas and greater participation of the private sector. Ornamental fish rearing will be actively promoted as a new source of income for the subsector.

Livestock Value Added

Livestock value added is projected to grow by 5.6 per cent per annum,from RM1.1 billion in 2000 to RM1.5 billion in 2005,particularly through the adoption of new technologies and upgrading of existing production technologies.To meet the expanding local and export markets,the production of chicks and ducklings,processing and marketing of poultry and higher value added products are further integrated.

Padi

Padi production is estimated to increase by 4.7 per cent per annum,from 2.2 million tonnes in 2000 to 2.8 million tonnes in 2005,contributing about 3.2 per cent of the growth in the food subsector.The participation of the private sector in opening up new land for commercial cultivatin,particularly in Sabah and Sarawak,will further increase padi (rice)production.

Fruits And Vegetables

During the Plan period,the production of fruits is estimated to grow by 7.6 per cent per annum,from 1.3 million tonnes to 2.0 million tonnes,where priority is given to 9 types of fruits – mandarin orange,,pineapple,jackfruit,papaya,carambola (starfruit), mango,watermelon,guava and durian.Efforts are being taken to increase the production of quality vegetables through more intensive utilization of modern farming techniques such as rain shelters and insect proof structures,hydroponics,aeroponics,fertigation as well as post-harvest handling technology.

Oil Palm

The planted area for oil palm is expected to decline at a rate of 2.2 per cent per annum to reach 3.1 million hectares in 2005 in line with the government ’s policy to rationalize oil palm cultivation.Malaysian palm oil standards will be established to market the unique and high quality Malaysian palm oil.

Table 1 :Agricultural Value Added,1995-2005 (RM Million in 1987 prices) *Includes coffee,tea,coconut,tobacco,pepper,vegetables,fruits,flowers,herbs and others.

Rubber

The production of rubber is expected to decline by 1.9 per cent per annum,from 616,000 tonnes in 2000 to 560,000 tonnes in 2005,with the expected reduction in planted area due to conversion to other users as well as unfavorable prices.However,rubber cultivation is still a significant contributor to the sector ’s growth through the production of rubber wood for the wood-based industry.

Cocoa

Cocoa production is expected to increase by 7.4 per cent per annum,from 70,000 tonnes in 2000 to 115,000 tonnes in 2005 due to improved productivity.Export earnings from cocoa and cocoa-based products are also expected to increase to RM615 million in 2005.Domestic demand for cocoa beans is anticipated to increase due to expansion in downstream activities,in particular cocoa grindings.

Pepper

Pepper production is expected to increase by 4.6 per cent per annum,from 24,000 tonnes in 2000 to 30,000 tonnes in 2005 due to better maintenance of farms and an expansion in planting areas to 12,500 hectares.The development and wider acceptance of end products from pepper such as pepper sauce, sweets and confectionary as well as other food seasonings is expected to increase the demand for pepper.

Table 2 :Replanting,Land Consolidation and Rehabilitation Programmes by Agency,1996-2005 (hectares)

Tobacco

Tobacco production is expected to increase by 6.4 per cent per annum,from 11,000 tonnes in 2000 to 15,000 tonnes in 2005,while the area under cultivation is expected to decline by 3.6 per cent to 12,500 hectares.The increase in production is mainly due to yield improvements,which is estimated to reach about 1,900 kg per hectare in 2005.

Floriculture

Floriculture is expected to register an annual growth of 6.5 per cent per annum during the Plan period with the production of cut flowers increasing from 500 million stalks in 2000 to 686 million stalks in 2005. The main increase in production will be from highland flowers and ornamental plants.

Specialty Natural Products

The emergence of various specialty natural product industries such as health,cosmetics and flavor as well as fragrances,is expected to contribute to the development of high value added specialty natural resources.R&D efforts will focus on the development of products from plants and aquatic-based organisms. A pool of researchers and support personnel will be trained in several key areas,particularly pharmaceutical, biotechnology,medicinal and industrial chemistry,to further develop the industry.

Conservation

The conservation of biological diversity will continue to be emphasized during the Plan period by expanding sustainable forest management practices.Greater focus will be given to increasing the productivity of forest resources to meet the expanding demand for raw materials from the timber based industries.This is undertaken through improved silvicultural treatment,forest rehabilitation,afforestation as well as more intensified R&D and support services.Eco-tourism and related services will also be promoted to capitalize on the uniqueness of the tropical rain forest for recreation and education.

Mid-Term Review Of The 8MP Speech by the Prime Minister in the Dewan Negara, 17 Nov 2003

“Continuing the Distribution Agenda
Priority will also be given to programmes that generate income and inculcate positive values,which include building self-reliance and self-esteem among the poor. Steps will continue to be made to combine new features that emphasize commercialization not only in agriculture, but also enable the rural people to expand their activities into the industrial,commercial and services sectors.

The optimum usage of land combined with modern techniques and technology and the application of research and development (R&D)will contribute towards increasing productivity of the rural community. New potential areas will also be developed for agriculture and other activities including recreation and tourism.Various supporting programmes for rural development will continue to be implemented including financial facilities and credit schemes.

Developing New Sources of Growth

The agriculture sector,which grew by 1.5 per cent during the review period,has a high growth potential .It includes the development of the industry for food crops and aquaculture for export,biotechnology and biomass products,natural products such as herbs,spices and medicinal plants as well as downstream agro-industrial products such as food processing industry,handicraft and other products.The shift to higher value added activities is pivotal in the strategy to develop the agriculture sector.

The development of the agriculture sector will be pursued using modern agriculture method ,aided by knowledge and the latest information technology system.This is not only to increase agricultural production but also to improve logistics, distribution and marketing of agriculture produce.We should take a holistic approach to develop the agriculture sector so that its produce is of quality from the farm to the consumers ’ table.This requires that the agriculture support services be improved jointly by the government and private sector. The development of a modern agriculture sector requires more professional manpower .More technicians,professionals and entrepreneurs will be trained in modern agricultural practices and skills.The problem of shortage in agricultural professionals such as soil scientists,microbiologists, biotechnologists and nutritionists will be overcome.”

	Domestic demand for cocoa grindings is on the rise
Pepper end products,e.g., pepper sauce,sweets and confectionary,are gaining in popularity
	Tobacco leaves being dried
Rubber wood can be used for the wood-based industry
	Modern farming techniques enhances the yield and quality of vegetables
There is always a demand for poultry,locally and internationally
	Opening up of new lands for commercial cultivation will further increase padi (rice) production
Specialty natural product industries such as health, cosmetic,flavor and fragrance,will assist the development of high value added specialty natural resources
	Malaysia ’s palm oil is unique and of high quality
The future of floriculture is rosy for highland flowers and ornamental plants