By: YBhg.

Dato Haji Raihan Bin Sharif Deputy Secretary General (Planning) Ministry of Agriculture and Agro-Based Industry MALAYSIA

National Key Economic Areas (NKEAs) -NKEA Agriculture -Implementation of EPPs

National Agrofood Policy -Objective

Four (4) strategic thrusts towards developed nation status

People First Performance Now

1 2 3

6 NKRAs
29 MKRAs

12 NKEAs
131 EPPs 60 Biz Opps

10th & 11th Malaysia Plan

MKRAGTP ETP NKRA NKEA EPP BO -

Ministerial Key Results Area Government Transformation Programme Economic Transformation Programme National Key Result Area National Key Economic Area Entry Point Project Business Opportunity

Making us a rich country, for everyone & for a long time

High-Income
Target USD 15,000 GNI per capita by 2020

Enables all communities to benefit from the wealth of the country

Quality of Life

Inclusiveness

Sustainability

Meets present needs without compromising future generations

12 National Key Economic Areas (NKEAs)

Financial Services
Greater KL/Klang Valley Oil, Gas & Energy

Education

Tourism

Business Services

11 Economic Sectors + Greater KL

Wholesale & Retail

Agriculture
Comms Content & Infra

Electrical & Electronics

Healthcare
Palm Oil

NKEA Agriculture focused on transforming the Agriculture industry into one with more focus on Agribusiness
Expanding participation in the regional value chain Capitalising on Malaysias Competitive Edge Tapping Premium Markets

Incremental GNI: RM28.9 billion

(ETP Annual Report 2012)

Ensuring Food Security

Total GNI: RM49.1 billion Jobs created: 109,335

(2020)

16 EPPs
7

EPP #
1

EPP Title
High Value Herbal Products

Project Owner
MOA (Herbal Development Office-HDO)

2
3 4 5 6 7 8

EBN Swiftlet Farming

Seaweed Industry Integrated Cage Farming (i-CAGE) Further Integration in Oil Palm Replication of IZAQ (i-ZAQ) Premium Market for Fruits and Vegetables Agro-Food Park

DVS (Dept. of Veterinary Services)

DOF (Dept. of Fisheries Malaysia) DOF DVS DOF DOA (Dept. of Agriculture) MOA (Agro-Based Industry Div.)

9
10 11 12 13 14

Fragrant Rice Variety

Strengthen Productivity of Paddy Farming in MADA Strengthen Productivity of Paddy Farming in Other Granaries Expansion of Feedlotting Dairy Cluster Seed Industry Development

MARDI
MADA MOA (Paddy and Rice Industry Div) DVS DVS MOA (Industry Dev. & Support Services Div.)

15
16 17

Participations of MNC in Agriculture Biotechnology

(Transfer to MOSTI March 2012)

MOSTI Ministry of Science,Technology and Innovation

DVS FAMA

Overseas JV/Acquisition Developing Pasar Komuniti and Caravan (PAKAR)

2020 GNI contribution from top 10 EPPs (RM million)

The top 10 EPPs add up

RM17.673 billion

to 93% of the incremental GNI

The remaining EPPs

have smaller GNI impact, but are important from:

A food security
4541
EBN Swiflet Farming

2214

1571

1411

1382

1370

1271

1033

883.2
Food Park

534.1
PAKAR

1462.6
Others *

High Premium Seaweed Integrated Paddy Replica- Paddy Cage Value Fruits Farming Farming tion of Farming Herbal and in Sabah Aquaculture in other iZAQ in Sistem Products Fresh Granaries MADA Veg. (FFV)

perspective (e.g. beef and milk selfsufficiency)

An inclusiveness
perspective (e.g. new rice variety to improve yield and farmers incomes in non-irrigated areas)

* 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)

The GNIs generated

RM3.564 billion

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

Premium Snack

Ornamental Fish

Herbal Product Distributor

Aqua Feed Mill

Nutra from Other Herbs

FDI for Free Tropi-cal Range Herbs Chicken

Mushroom Project

SFI Facilities

Aqua Export Center

Readyto-eat Jackfruit

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)

GNI Impact

Jobs Created

RM 2.214 billion

2,000
Project Details

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)

GNI Impact

Jobs Created

RM4.541 billion

20,800

Project Details 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

GNI Impact

Jobs Created

Project Details

RM1.411 billion

Increase the yield and total production of seaweed to

13,000

150,000 MT in 2020 by clustering of farms Adoption of improved production methods by introduction of mini estate concept with technologyintensive 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

GNI Impact

Jobs Created

RM1.382 billion

10,100

Project Details

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

GNI Impact

Jobs Created

Integration of another 300,000 heads of cattles in large

RM150 million

3,600

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

GNI Impact

Jobs Created

RM1.271 billion

12,000

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

GNI Impact

Jobs Created

Project Details

RM1.571 billion

9,100

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

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.

GNI Impact

Jobs Created

Project Details

RM883.2 million

5,000

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)

GNI Impact

Jobs Created

RM 222 million

4,998
Project Details
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

GNI Impact

Jobs Created

Project Details
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 .

RM 1.033 billion

14,900

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

GNI Impact

Jobs Created

Project Details
Similar model to MADA will be implemented in KADA and IADA.

RM 1.370 billion

9,600

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

GNI Impact

Jobs Created

RM 182.4 million

2,000

Scope of Public Funding

Development Expenditure (Nil)

Operational Expenditure (Nil)

Project Details

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).

Project Details

GNI Impact

Jobs Created

RM 326 million

800

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

GNI Impact

Jobs Created

Project Details

RM 467 million

5,400

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

Development Expenditure

i. Purchasing of equipment to complete laboratory (Market Assisted Selection technology)

Project Details GNI Impact Jobs Created

RM 819 million

1,200

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.

TRANSFERED TO MOSTI MINISTRY OF SCIENCE, TECHNOLOGY AND INNOVATION UNDER BIOECONOMY INITIATIVE (March 2012)
Scope of Public Funding Development Expenditure i. Construction of facilities for companies

Project Details GNI Impact Jobs Created

RM 115.2 million

Nil

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 Details GNI Impact Jobs Created

RM 534.1 million

35,360

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

Food Security adequacy, availability, safety and affordability. High value agricultural development.

Sustainable agricultural development.

Dynamic agriculture cluster, maximizing income generation.

29

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. Excellent agricultural support services.

30

To ensure adequate food security that is safe to eat

To make agrofood industry as a competitive and sustainable industry To increase agro based entrepreneurs level of income

31

Sum of GNI* RM billion

Sum of Private Investment* RM billion

Sum of Jobs Creation*

28.90

19.90

109,335

62,926 8.94 13.39

Target

Generated

Target

Committed

Target

Created

46.3%
of 2020 target

44.9%
of 2020 target

57.6%
of 2020 target
*Based on approved companys GNI, Investment and Jobs proposed targets; May 2013

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