Recent Malaysia Budget: Agriculture Sector !!!

This is a part of our PM budget speeches dated October 23 2009:

THE 2010 BUDGET SPEECH
By YAB DATO’ SRI MOHD. NAJIB TUN ABDUL RAZAK
PRIME MINISTER AND MINISTER OF FINANCE
INTRODUCING THE SUPPLY BILL (2010)
IN THE DEWAN RAKYAT
23 OCTOBER 2009

ADVANCING AGRICULTURE SECTOR

43. The agriculture sector has contributed significantly to the income of the
people in rural areas and to economic growth. The Government is confident that the
sector has the potential to be upgraded and play a significant role in generating
income for the rakyat. The transformation of the sector needs to be intensified from
cultivation to marketing the products. This process involves programmes aimed at
attracting more young entrepreneurs, encourage best agricultural practices and
upgrade agriculture infrastructure. For this purpose, the Government will allocate
RM6 billion for the agriculture sector, among others:

First: Upgrade and improve drainage and irrigation infrastructure in paddy
fields involving 180,000 farmers with an allocation of RM137 million;

Second: Implement the Paya Peda Dam Project in Terengganu, which will
increase water supply capacity to Skim Pengairan Padi in Besut. For
the year 2010, a sum of RM70 million will be provided;

Third: Modernise the aquaculture industry and implement entrepreneurship
training scheme for aquaculture breeders with focus on production of
fish fry and ornamental fish. The scheme will benefit 1,150
participants, involving an allocation of RM82 million;

Fourth: Develop food farming industry such as fruits, vegetables, organic
farming, herbs, seaweeds and swiftlet nests with an allocation of
RM149 million;

Fifth: Develop basic infrastructure of livestock farms and establish supply
chains for production of beef and mutton with an allocation of RM58
million; and

Sixth: Implement the incubator programme to train and guide youths and
graduates to be successful agro-entrepreneurs. This programme will
be jointly undertaken by the Ministry of Agriculture and Agro-based
Industry, Ministry of Youth and Sports, Universiti Putra Malaysia,
AgroBank and Regional Economic Corridors.

44. Efforts are being undertaken to establish Federal Land Development
Authority (FELDA) settlements for large-scale food production and as a national
food storehouse. Vacant land in FELDA settlements will be used to plant chillies,
brinjals, bunga kantan and bananas. FAMA will facilitate the marketing of these
products. On 23 August, I proposed that FELDA, Federal Land Consolidation and
Rehabilitation Authority (FELCRA) and Rubber Industry Smallholders Development
Authority (RISDA) cooperate in establishing a consortium to implement various highimpact
projects in downstream and upstream industries.

45. The consortium will be established by the end of 2009, with a paid-up capital
of RM300 million and, with each agency contributing RM100 million. This consortium
involves technology sharing, plantation management, business partnerships,
including supply and processing of agriculture products.

46. To ensure agriculture products are marketed abroad effectively and
expeditiously, efforts to upgrade cargo facilities will be intensified. For this,
MASKargo will upgrade air cargo facilities for export of perishable agriculture
products. This measure will assist entrepreneurs to export more agriculture produce.

47. The Government is concerned with the plight of farmers and fishermen. To
safeguard their interest, the Government will provide subsidies, incentives and
assistance amounting to almost RM2 billion.

48. Among subsidies and incentives to be provided in 2010 include paddy price
subsidy of more than RM400 million and paddy fertiliser subsidy of almost RM300
million. Meanwhile, incentives to increase paddy yield, production and rice subsidy
account for almost RM220 million. In addition, a sum of RM170 million is allocated to provide cost of living allowance and incentives to fishermen.

Full speech can be located at: http://www.btimes.com.my/Current_News/BTIMES/articles/20091023183743/Article/



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