etp and food security
DESCRIPTION
Presented at the ASEAN REgional Conference on Food Security, Penang, Malaysia 8-10 October 2013TRANSCRIPT
By:
YBhg. Dato’ Haji Raihan Bin Sharif
Deputy Secretary General (Planning)
Ministry of Agriculture and Agro-Based Industry
MALAYSIA
National Agrofood Policy
National Key Economic Areas (NKEAs)1
-NKEA Agriculture
-Implementation of EPPs
2
2
-Objective
3
Four (4) strategic thrusts towards developed
nation status
10th & 11th Malaysia Plan
People First Performance Now
1
• 6 NKRAs
• 29 MKRAs
2
4
• 12 NKEAs
• 131 EPPs
• 60 Biz Opps
3
4
• MKRA- Ministerial Key Results Area
• GTP - Government Transformation Programme
• ETP - Economic Transformation Programme
• NKRA - National Key Result Area
• NKEA - National Key Economic Area
• EPP - Entry Point Project
• BO - Business Opportunity
5
Making us a rich country,
for everyone & for a long time
High-Income
Inclusiveness Sustainability
Target USD 15,000
GNI per capita by 2020
Enables all
communities
to benefit from
the wealth of
the country
Meets present
needs without
compromising
future
generations
Quality
of Life
6
12 National Key Economic Areas (NKEAs)
Comms
Content &
Infra
11 Economic Sectors
+
Greater KL
Wholesale
& Retail
Oil, Gas &
Energy
Palm Oil
Healthcare
Financial
Services
Greater
KL/Klang
Valley
Agriculture
Tourism
Education
Electrical
& Electronics
Business
Services
7
NKEA Agriculture focused on transforming the
Agriculture industry into one with more focus on Agri-
business
16 EPPs
Incremental GNI:
RM28.9 billion
(ETP Annual Report
2012)
Total GNI:
RM49.1 billion
Jobs created:
109,335(2020)
Capitalising on Malaysia’s
Competitive Edge
Tapping Premium
Markets
Expanding participation in the
regional value chain
Ensuring Food
Security
8
EPP # EPP Title Project Owner
1 High Value Herbal Products MOA (Herbal Development Office-HDO)
2 EBN Swiftlet Farming DVS (Dept. of Veterinary Services)
3 Seaweed Industry DOF (Dept. of Fisheries Malaysia)
4 Integrated Cage Farming (i-CAGE) DOF
5 Further Integration in Oil Palm DVS
6 Replication of IZAQ (i-ZAQ) DOF
7 Premium Market for Fruits and Vegetables DOA (Dept. of Agriculture)
8 Agro-Food Park MOA (Agro-Based Industry Div.)
9 Fragrant Rice Variety MARDI
10 Strengthen Productivity of Paddy Farming in MADA MADA
11 Strengthen Productivity of Paddy Farming in Other
Granaries
MOA (Paddy and Rice Industry Div)
12 Expansion of Feedlotting DVS
13 Dairy Cluster DVS
14 Seed Industry Development MOA (Industry Dev. & Support Services
Div.)
15 Participations of MNC in Agriculture Biotechnology (Transfer to MOSTI March 2012)
MOSTI – Ministry of Science, Technology
and Innovation
16 Overseas JV/Acquisition DVS
17 Developing Pasar Komuniti and Caravan (PAKAR) FAMA
2020 GNI contribution from top 10 EPPs
(RM million)
4541 2214 1571 1411 1382 1370 1271 1033 883.2 534.1 1462.6
High
Value
Herbal
Products
Premium
Fruits
and
Fresh
Veg.
(FFV)
Seaweed
Farming
in Sabah
Integrated
Cage
Aquaculture
Sistem
Paddy
Farming
in other
Granaries
Replica-
tion of
iZAQ
Paddy
Farming
in
MADA
Food
Park
EBN
Swiflet
Farming
PAKAR Others *
* Seed Industry Development (RM 467 mil); Dairy Cluster (RM 326 mil); Cattle Feedlot (RM 182.4 mil); Cattle Integration with
Oil Palm (RM 150 mil); Cattle Overseas JV (RM 115.2 mil); Fragrant Rice (RM 222 mil)
2020 GNI contribution from top 10 Business Opportunities
(RM million)
Orna-
mental
Fish
Herbal
Product
Distributor
Aqua
Feed
Mill
Nutra
from
Other
Herbs
FDI for
Tropi-cal
Herbs
Free
Range
Chicken
Mush-
room
Project
Premium
Snack
SFI
Facilities
Aqua
Export
Center
Ready-
to-eat
Jackfruit
RM17.673 billion
▪ The top 10 EPPs add up
to 93% of the
incremental GNI
▪ The remaining EPPs
have smaller GNI impact,
but are important from:
– A food security
perspective (e.g.
beef and milk self-
sufficiency)
– An inclusiveness
perspective (e.g. new
rice variety to
improve yield and
farmers’ incomes in
non-irrigated areas)
▪ The GNIs generated
from business
opportunities are mostly
below RM3.564 billion,
as there is a lot of
element of uncertainties
which calls for
conservative
assumptions to be used
RM3.564 billion
1. Private sector driven with ability to become anchor company.
2. Contribution to high GNI, private investment initiatives and job
creations to the local.
3. Government funding with reimbursement mechanism (ratio –
30:70)
4. Basic infrastructure funded (depend on the approved components
of funding each EPP).
5. KPI monitoring until 2020 (pre-production and post-production)
(monthly reporting)
• Product development of nutraceuticals and botanical drugs based on 5 selected herbs –
• Upstream supporting initiative of Herbal Cultivation Park for commercial production of raw materials
undertaken by ECERDC in Pasir Raja, Chegar Perah & Durian Mentangau.
• 5 R&D Clusters of Excellence formed to co-ordinate the R&D for each research institution (RI) and
research universities (RU) in respective clusters: Discovery, Crop Production & Agronomy,
Toxicology/Pre-clinical, Product Development & Processing Technology
• Establishment of Herbal Development Council (HDC)
Scope of Public Funding
Development Expenditure:
i. R&D Grant
ii. Building of admin & R&D complex, quarters and CPPC for Herbal Cultivation Parks in Durian
Mentangau, Pasir Raja and Cegah Perah
iii. Facilities upgrade for IMR
Operational Expenditure:
i. Establishment of Herbal Development Office (HDO)
Project Details
Jobs CreatedGNI Impact
RM 2.214
billion2,000
• Increase production of upstream by building of additional 2,000 new premises annually and 6
Collection Centres
• Improve monitoring and enforcement of Good Animal Husbandry Practice (GAHP), and Good
Manufacturing Practice (GMP) for swiftlet premises and processing plants by incorporating
traceability system
• Increase downstream product development and cleaning of more raw products locally by
construction of R&D Centre for development and processing
Scope of Public Funding
Development Expenditure:
i. R&D Activity for Downstream Processing
ii. Acquisition of lab equipments for lab test on EBN
iii. Enforcement and traceability system
Operational Expenditure:
i. EBN Website
ii. Procurement of vehicles
iii. Human Resource
iv. Rental for EBN Collection Centre
Project Details
Jobs CreatedGNI Impact
RM4.541
billion20,800
• Increase the yield and total production of seaweed to
150,000 MT in 2020 by clustering of farms
• Adoption of improved production methods by
introduction of mini estate concept with technology-
intensive land-based farming, cluster program and
commercialization.
• Downstream R&D&C to strengthen capability to
process dry seaweed into high-value products (e.g
semi-refined carrageenan (SRC) and alkaline treated
chips (ATC)) as well as development for other uses of
seaweed.
Scope of Public Funding
Development Expenditure:
i. Construction of seaweed mini estate system and building of jetty
ii. Establishment of R&D&C programme and pilot plant for product development
Operational Expenditure:
i. Rental and operations of SPV
Project DetailsJobs CreatedGNI Impact
RM1.411
billion13,000
• Focus the aquaculture fish production for high-value species e.g seabass, grouper, tilapia to account
for 28% of total production in 2020
• Upstream supporting initiative: establishment of quality broodstock development centres to reduce
dependency on imported fries
• Mechanism of anchor companies to ensure integrated approach for large scale production from
hatchery to processing phase.
• ZIA locations (e.g Tasik Kenyir, Tasik Bakun, Tasik Temenggor) has been identified for
implementation.
Scope of Public Funding
Development Expenditure:
i. Basic infrastructure (e.g. jetties, access roads, main piping)
ii. Broodstock centre (e.g. hatchery, quarantine facilities, multiplying centre)
Project Details
Jobs CreatedGNI Impact
RM1.382
billion10,100
• Integration of another 300,000 heads of cattles in large
oil palm plantations, at 3-4 hectares per head.
• Formation of Cattle Integration Development Committee
to oversee the implementation of this project.
• Emphasize on systematic rotational grazing, adherence
to GAHP and breeding program for the cattles while
synergizing with the estate owners.
Scope of Public Funding
Development Expenditure:
i. Purchase of breeder cattles to kickstart operations
Project Details
Jobs CreatedGNI Impact
RM150
million3,600
• Establishment of an aquaculture park with an average size
of 1,000 ha dedicated to the organized production of high
quality, fully certified shrimp for the premium market.
• Each IZAQ will be championed by an anchor company;
SMEs and smallholders can participate through contract
farming/profit sharing arrangement.
• Current model of IZAQ is being integrated in Setiu. Target to
have 10 additional IZAQ by 2020.
Scope of Public Funding
Development Expenditure:
i. R&D and diagnostic lab (integrated facility for breeding programme)
ii. Skills Development Centre
iii. Infra for seawater intake, basic infra e.g. road access
Project Details
Jobs CreatedGNI Impact
RM1.271
billion12,000
• Production of 5 identified high-value non-seasonal tropical
fruits: rock melon, starfruit, papaya, banana and pineapple;
and intensify production of 3 high-value highland vegetables:
lettuce, tomato and capsicum.
• Existing TKPM will be leveraged on for production of rock
melon, starfruit and papaya. Identified TKPM includes
Puncak Baring, Bukit Sapi, Sendayan, Lanchang, Inderapura,
Kuala Lipis.
• Intercropping of oil palm and banana/pineapple will be
adopted.
• Rehabilitation, intensification and consolidation of land to
increase production of highland vegetable in Cameron
Highland and Lojing I & II.
Scope of Public Funding
Development Expenditure:
i. Cold room, 1 CPPC each for Papaya,
Rock Melon, Carambola
ii. Land clearing, road, water system,
electricity, drainage for new TKPM
iii. Land clearing & development, CPPC,
settler houses, bridges & road, water
supply, electricity, community hall, house
of worship, clinic, MRL Lab in Lojing
iv. Upgrade existing facilities, soil
management and waste management
Project DetailsJobs CreatedGNI Impact
RM1.571
billion9,100
• Development of integrated food park based on anchor
company approach to co-ordinate SMEs and smallholders
and produce in large-scale, fully accredited system.
Scope of Public Funding
Development Expenditure (Soft loan through
Agrobank)
Project DetailsJobs CreatedGNI Impact
RM883.2
million5,000
• Planting of fragrant rice variety e.g Jasmine-type and
Basmati-type on a commercial scale on rainfed areas to
improve average national yield, substitute import of fragrant
rice and tap premium organic rice market.
• Identified anchor company for Jasmine-type MRQ76, and for
Basmati-type MRQ74, will be up-scaling the production of the
variety and expanding the production of the variety from
anchor company farms.
• MARDI will support in the R&D for continuous development
and production of new varieties of fragrant rice.
Scope of Public Funding
Development Expenditure
i. Land preparations: Ploughing, rotovation, liming, harrowing, levelling, seedling process, transplanting
process, field management process.
ii. R&D for improvement of variety
Project Details
Jobs CreatedGNI Impact
RM 222
million4,998
• Improve farm management by introduction of the land
amalgamation scheme to 500 ha per farm and providing
incentives for traditional farmers to exit in Muda area.
• Accelerate technology use by introducing new varieties of
seed and production/milling technologies as well as
promoting larger scale mechanization
• Intensification of infrastructure by improving the irrigation
density in areas with high potential to increase yield
• Target of initiatives is to double the yield of paddy from the
current 4.0 MT/ha to 8.0 MT/ha.
• MADA and BERNAS will co-establish an SPV to implement
the initiatives in MADA
• .Scope of Public Funding
Development Expenditure
i. Incentives for farmers to exit land
ii. Irrigation for 10 blocks in MADA
Operational Expenditure
i. Road shows for promotion of land
amalgamation scheme
ii. Establishment of SPV
Project DetailsJobs CreatedGNI Impact
RM 1.033
billion14,900
• Similar model to MADA will be implemented in KADA and
IADA.
• Develop 4,300 ha in Batang Lupar and 5,000 ha in Kota
Belud for double-cropping (focusing on areas with good soil –
e.g. non peat areas) and include flood mitigation and water
management system up to tertiary level.
• Establish entity owned by farmers’ cooperative and
Government that will manage the paddy farming activities
from upstream to downstream
• Establish R&D programme to improve yield of Sarawak rice
varieties, improving drought tolerance, pest and disease
resistance etc.
Scope of Public Funding
Development Expenditure
i. Incentives for farmers to exit land
ii. Irrigation in Batang Lupar and KADA
iii. R&D for seed development in Sarawak
iv. Irrigation infrastructure for other granaries
Project DetailsJobs CreatedGNI Impact
RM 1.370
billion9,600
• Establishment of 300 satellite farms to support the anchor company, for feedlotting operations.
• Anchor company will oversee the operations of the entire value chain while focusing on the integrated
and consolidated downstream processing.
• Downstream operations will be improved by enforcing certification of abattoir, cold-chain delivery of
chilled cuts, promoting market awareness of buffalo meat vs beef, and developing downstream (beef
byproducts).
Scope of Public Funding
Development Expenditure (Nil)
Operational Expenditure (Nil)
Project Details
Jobs CreatedGNI Impact
RM 182.4
million2,000
• Establishment of dairy clusters led by anchor
companies to produce milk on a large-scale basis and
oversee the operations from production to marketing.
• Upgrading of the existing cold-chain milk facilities to
ensure the quality of milk from farm to market is
maintained
Scope of Public Funding
Development Expenditure
i.Purchase of female animals to kick start operations
ii.Upgrading of farms for contract farmers under anchor companies
iii.Upgrading of milk processing facility
Project DetailsJobs CreatedGNI Impact
RM 326
million800
Development Expenditure
i. Purchasing of equipment to complete laboratory (Market Assisted Selection technology)
Project Details
• Introduction of Marker-Assisted Selection (MAS)
technology to produce progeny with desired traits
e.g high-yielding, disease-resistant
• Establishment of National Seed Council (National
Seed Steering Committee as interim structure) to
oversee the development of seed industry in
Malaysia to reduce dependency on imported
seeds/breeding material
Scope of Public Funding
Jobs CreatedGNI Impact
RM 467
million5,400
• Attracting FDI in Agricultural Biotechnology into
Malaysia contributes into multiple area that benefits
the industry and develops highly skilled human
capital
• Leveraging on Biotechcorp as the implementing
agency. Biotechcorp will formulate the package
necessary to secure FDI into the country.
Scope of Public Funding
Development Expenditure
i. Construction of facilities for companies
Project DetailsJobs CreatedGNI Impact
RM 819
million1,200
TRANSFERED TO MOSTI – MINISTRY OF SCIENCE, TECHNOLOGY AND INNOVATION UNDER BIOECONOMY INITIATIVE
(March 2012)
• Secure a consistent and affordable source of live
animals for breeding, feedlotting, and dairy
operations over the next 10 years• Scope has been expanded to include other potential
areas in agriculture e.g poultry with purpose of
bringing in profit into the country
Scope of Public Funding
Development Expenditure (Nil)
Project DetailsJobs CreatedGNI Impact
RM 115.2
millionNil
• Transform various markets with modernising and
amalgamating various local market formats such
as Pasar Tani (farmers’ markets), Pasar Malam
(night markets), Pasar Minggu and Pasar Tamu
(both weekly markets) into one large-sized called
Community Market .
• Community Market .– that has proper amenities
with more hygenic and is monitored by relevant
government agencies.
• The Federal Agriculture Marketing Authority
(FAMA) is leading the setting up of the
Community Market . with regards to site
identification, refurbishment, discussions with
market traders, etc
Scope of Public Funding
Development Expenditure
i. Construction of facilities for 20 PAKAR
Project DetailsJobs CreatedGNI Impact
RM 534.1
million35,360
Food Security – adequacy, availability, safety and
affordability.
High value agricultural development.
Sustainable agricultural development.
1
2
3
29
Dynamic agriculture cluster, maximizing income
generation.4
Private investment as a catalyst for the
transformation of modern agriculture.
Smart and Informative human capital in agriculture.
Modernization of agriculture driven by research and
development (R&D), technology and innovation.
5
6
7
30
Excellent agricultural support services.8
To ensure adequate food security that is safe to eat
To make agrofood industry as a competitive and
sustainable industry
To increase agro based entrepreneur’s level of income
1
2
3
31
Sum of Jobs Creation*
Target Created
Sum of GNI*
RM billion
Sum of Private Investment*
RM billion
Target Generated
28.90
Target Committed
46.3% of 2020 target
44.9% of 2020 target
57.6% of 2020 target
*Based on approved company’s GNI, Investment and
Jobs proposed targets; May 2013
19.90
8.94
109,335
62,926
13.39
33