MPI continues strong commitment to drive agri-commodity industry's growth

KUALA LUMPUR, Oct 11 -- The Primary Industries Ministry (MPI) will continue to be highly committed in driving further the growth of the country's agri-commodity industry.

Its minister, Teresa Kok Suh Sim, said it was ready with programmes and initiatives to continue efforts towards improving the sector's contribution towards strengthening the country's economy based on the 2020 Budget's four thrusts.

The thrusts are driving economic growth in the new economy and digital era; investing in Malaysians; creating a united, inclusive and equitable society; and revitalising public institutions and finances.

In a statement issued after the 2020 Budget tabling today, Kok said MPI had been given a budget allocation of RM670.15 million, comprising RM259.52 million for operating expenditure and RM410.62 million for development spending.

She noted that the government, through the first thrust's Strategy 4: Strengthening Economic Diversity, was focusing on efforts to add value to the commodities sector specifically.

This includes giving a RM550 million oil palm replanting loan fund for smallholders, collateral-free, at an interest rate of two per cent per annum, with a tenure of 12 years including a four-year moratorium on repayment. The replanting will be undertaken using the latest seedlings and also in compliance with Malaysian Sustainable Palm Oil standards to ensure better productivity and marketability.

Other allocations include RM27 million to support Malaysian Palm Oil Board's efforts to market palm oil internationally and counter anti-palm oil campaigns, RM100 million for the Rubber Production Incentive (IPG) for 2020, RM30 million for research and development matching grants for industry-academia collaborations to develop higher value added downstream uses of palm oil, as well as RM150 million to facilitate crop integration for chili, pineaplle, coconut, watermelon and bamboo.

“With the global economic growth forecast (for 2019) falling to 3.2 per cent, 2020 is seen as a challenging year for the agri-commodities sector.

“Nevertheless, MPI will continue to focus on the primary industries sector that is a significant contributor to the country's economic growth and a catalyst towards boosting the income of people in rural areas,” Kok said.

-- BERNAMA