COMMODITY EXPORTS SET TO GROW TO RM130b
Sustained pricing, firm global demand seen this year
THE government has forecast plantation commodity exports to grow between fiveand eight per cent this year to RM130 billion, thanks to sustained pricing and firm global demand.
“Palm oil and rubber prices were higher in the first quarter of the year. We are targeting export growth of between five and eight per cent, driven by an expansion of market share and the exploration of new export markets,” said Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong.
Malaysia’s plantation-based commodities comprise palm oil, rubber, timber, cocoa, tobacco and pepper.
“The plantation commodity sector contributed to 15.5 per cent of Malaysia’s merchandise exports,” he said.
Apart from manufacturing and tourism, plantation commodity is a major contributor to the economy.
“The plantation commodity sector contributed 7.4 per cent to Malaysia’s economic worth of RM1.11 trillion,” said Mah in an interview here recently.
Mah highlighted that the plantation industry’s value add to the country’s economy is quite significant.
“I believe the commodity sector will remain Malaysia’s pride as we strive to maximise the potential.
“We want to encourage our businesses to move up the value chain and build their resources to be more resilient to volatile pricing in the global markets.”
Mah reiterated that the government is committed to transforming the economy to be more knowledge-intensive with highvalue-added activities, therefore generating high-income jobs.
As the plantation industry harbours considerable political influence and significance, Mah said more than half of the country’s 222 constituencies are populated by small farmers cultivating pepper vines, kenaf, oil palms, coconut, rubber, acacia and cocoa trees.
Farmers’ political and economic interests and contribution to Malaysia’s economy will continue to be upheld as their produce continue to be value-added via manufacturing, trading and branding activities.
Mah said he has experienced a steep learning curve since helming the ministry for the past 12 months.
“A year ago, my friends in Gerakan regarded my appointment to this ministry as a homecoming,” said Mah, who is Gerakan president.
The plantation sector used to be seen as a “Gerakan portfolio” as the late Tun Dr Lim Keng Yaik was the minister leading this economic growth engine for almost two decades.
Lim was the-then minister of primary industries from 1986 to 2004.
“It has not been easy and at times, challenging. But I assure you, I’m determined to continue to do what I can to solve problems faced by planters and the business community,” Mah said.