ETP and Food Security

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



i. R&D Activity for Downstream Processing

ii. Acquisition of lab equipments for lab test on EBN

iii. Enforcement and traceability system


i. EBN Website

ii. Procurement of vehicles

iii. Human Resource

iv. Rental for EBN Collection Centre

Project Details


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.



i. Construction of seaweed mini estate system and building of jetty

ii. Establishment of R&D&C programme and pilot plant for product development


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.



i. Basic infrastructure (e.g. jetties, access roads, main piping)

ii. Broodstock centre (e.g. hatchery, quarantine facilities, multiplying centre)

Project Details


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.



i. Purchase of breeder cattles to kickstart operations

Project Details


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.



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


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.



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


RM1.571

billion9,100

http://www.google.com.my/imgres?imgurl=http://www.volunteer.blogs.com/winewaves/images/starfruit.jpg&imgrefurl=http://volunteer.blogs.com/winewaves/2005/12/starfruit.html&usg=__KIUaRBENiZXaJzAzaucdIAhcyIk=&h=334&w=500&sz=23&hl=en&start=1&itbs=1&tbnid=tvRyLFRCHTmMoM:&tbnh=87&tbnw=130&prev=/images?q=starfruit&hl=en&gbv=2&tbs=isch:1

http://www.google.com.my/imgres?imgurl=http://beautifynaturally.files.wordpress.com/2009/09/pineapple1.jpg&imgrefurl=http://beautifynaturally.wordpress.com/&usg=__kkv7RpyAMq_YVAgGmHg7b0eGJug=&h=440&w=620&sz=32&hl=en&start=16&itbs=1&tbnid=i_3ND4sVwxYP8M:&tbnh=97&tbnw=136&prev=/images?q=pineapple&hl=en&gbv=2&tbs=isch:1

• Development of integrated food park based on anchor

company approach to co-ordinate SMEs and smallholders

and produce in large-scale, fully accredited system.


Development Expenditure (Soft loan through

Agrobank)


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.


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


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


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


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.



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


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).


Development Expenditure (Nil)

Operational Expenditure (Nil)

Project Details


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



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


RM 326

million800


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



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.



i. Construction of facilities for companies


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


Development Expenditure (Nil)


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



i. Construction of facilities for 20 PAKAR


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



*Based on approved company’s GNI, Investment and

Jobs proposed targets; May 2013

19.90

8.94

109,335

62,926

13.39

33

Documents

ETP and Food Security