Agriculture sector to rebound on higher palm oil, rubber output
KUALA LUMPUR: The agriculture sector is expected to rebound to 5.6 per cent compared to the fall of 5.1 per cent in 2016, mainly driven by crude oil palm (CPO) and rubber sub-sectors, which accounted for 53.1 per cent of the sector.
According to the 2017/2018 Economic Report released by the Ministry of Finance yesterday, the oil palm sub-sector rebounded with a strong growth of 14.6 per cent (January-June 2016: minus 15.2 per cent) attributed to higher production of CPO.
During the first nine months in 2017, production of CPO turned around 12.2 per cent to 14.1 million tonnes contributed by higher fresh fruit yield at 12.7 tonnes per hectare (January-June 2016: -15.3 per cent; 12.6 million tonnes; 11.6 tonnes per hectare.
“The CPO’s production is expected to reach 20 million tonnes this year (2016: 17.3 million tonnes) in tandem with seasonal trends and waning effect of El Nino,” the report said.
On the rubber sub-sector, the report said, production is expected to expand 3.9 per cent to 700,000 tonnes (2016: 6.7 per cent to 673,513 tonnes).
It said that the average natural rubber price increased to RM7.44 per kg during 9M2017 largely due to supply disruption following flood in Thailand and higher demand from expansion in the global vehicle fleet.
“This sub-sector is expected to record a strong growth momentum of 10.8 per cent with prices averaging at RM7.30 per kg (2016: 6.3 per cent; RM5.68 per kg).
According to the report, the other sub-sectors were also expected to increase 2.4 per cent mainly supported by expansion in the Permanent Food Production Parks (TKPM) and stronger demand for tropical fruits, especially from China and Middle East.
“As for August 2017, there were 74 TKPMs established in Malaysia with an area of 10,914 hectares,” it said. — Bernama