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The Economic Transformation Programme - Chapter 15

The Economic Transformation Programme - Chapter 15

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Published by Encik Anif
Chapter 15
Chapter 15

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Published by: Encik Anif on Oct 26, 2010
Copyright:Attribution Non-commercial


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Economic Transformation Programme
A Roadmap For Malaysia
Chapter 15: Transitioningfrom Agriculture to Agribusiness
“The global demand for agriculture produce is expanding rapidly and there are many niches that  Malaysia can exploit, given our natural advantages. We aim to double the agriculture sector’scontribution to Gross National Income by expanding the production of high-value items such asswiftlet nests and by increasing the percentage of raw produce that is made into downstream products. Through better infrastructure, management techniques and technology, we also target toincrease the productivity in paddy farming, seaweed farming and temperate vegetables farmingby more than 40%. This will enable farmers participating in our projects to more than double themonthly income that they receive” 
YB Datuk Seri Noh bin Omar
he agriculture sector plays an important role in Malaysia’s economic development – providing ruralemployment, uplifting rural incomes and ensuring national food security. Traditionally labelledthe poor man’s sector, the face of agriculture is slowly changing entrepreneurial farmers in diverse businesses from swiftlet nest ranching to large-scale paddy farming have been able to move in to Malaysia’stop 20 percent income group. Internationally agriculture has become the centre of cutting-edge researchand development (R&D) as the drive to feed the global population within environmentally sustainableconstraints is leading to experimentation in solutions such as vertical farms, laboratory-grown meat andadvanced genetic engineering.Excluding industrial crops such as palm oil and rubber which are covered in the Palm Oil NKEA, theagriculture sector contributed RM20.2 billion or about 4 percent of Malaysia’s gross national income (GNI)in 2009, with a compounded annual growth rate between 2005 and 2009 of 10.7 percent.The growing global demand for agricultural products provides great potential to expand the sector’scontribution to GNI and elevate rural incomes. Our aim is to transform agriculture into agribusiness,moving towards a model which is inclusive but simultaneously anchored on market-centricity, economiesof scale and value chain integration.
Chapter 15
Transitioning rom Agriculture to Agribusiness
The overall agriculture sector is broad, encompassing industrial crops such as oil palm and rubber, food andcash crops (also known as agro-food, food that is produced by agriculture) such as paddy and livestock, andspecialty products such as edible bird’s nests and herbs.The Agriculture NKEA will focus on selected sub-sectors which have high-growth potential, namely aquaculture, seaweed farming, swiftlet nests, herbal products, fruits and vegetables and premium processedfood
(Exhibit 15-1)
. This will enable Malaysia to tap a large global market that is rapidly expanding.
Exhibit 15-1
In addition, the paddy and livestock sub-sectors were selected due to their strategic nature in ensuringnational food security.
The eight sub-sectors identied above generated total domestic production worth approximately RM16.6
 billion in 2009 and account for 82 percent of the GNI contribution of the agriculture sector
(Exhibit 15-2)

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