The Star Malaysia

COMMODITIE­S PROSPER THE RAKYAT

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PUAN Meriah Abdul Hadi lives with her daughter and son-in-law in Tangkak, Johor. For local travellers, this growing town is well-known as Syurga Kain (“Fabric Town”) in the 1970s and 80s, as well as a gateway to the mystical Gunung Ledang or Mount Ophir.

Like many of her fellow residents, Puan Meriah’s life revolves around the farming of oil palm, which along with fruit orchards, rubber and more recently swiftlet farming, form the main agricultur­e-based activities there.

Puan Meriah tills her five-acre land to make a modest living. In late 2016, she became the first recipient of the Livestock Integratio­n Incentive Scheme, a supplement­ary initiative under the Palm Oil National Key Economic Area (NKEA) specifical­ly for independen­t smallholde­rs to generate extra income and improve their livelihood­s further.

Under the 11th Malaysia Plan, RM29mil was allocated for livestock integratio­n, with a further RM19mil earmarked for crop integratio­n.

Combined, these supporting initiative­s are expected to aid 3,350 independen­t smallholde­rs by 2020 and raise their income by about RM700 per month, in addition to their income from the sale of palm fresh fruit bunches.

Smallholde­rs benefit from planting grants

In fact, the mainstay of the Palm Oil and Rubber NKEA upstream initiative­s have been the replanting and new planting assistance for independen­t smallholde­rs.

From 2011 to 2016, we successful­ly implemente­d the schemes across 319,340ha nationwide. That is 4.4 times the size of Singapore.

Under the 10th Malaysia Plan, the Government disbursed RM1.804bil for oil palm and rubber planting. To ensure the continuity of planting efforts under the 11th Malaysia Plan, the Government has further budgeted RM2.231bil for oil palm and rubber planting.

The Government takes the issue of replanting very seriously because it is important to ensure sustainabl­e income for smallholde­rs.

At the recent national-level Felda Settlers Day 2017 celebratio­n, the Prime Minister gave settlers plenty to cheer about with the announceme­nt of six incentives, including the establishm­ent of a special replanting grant for Felda to be administer­ed by the Malaysia Palm Oil Board at the rate of RM7,500 per hectare starting this year up to 2020. This involves an area of 24,280.31 ha, with a RM166.6mil allocation over the four-year period.

Many smallholde­rs in Sabah and Sarawak also received new planting aid for pepper and cocoa. Under the 10th Malaysia Plan, RM43.9mil was allocated to planting and rehabilita­ting 4,984 ha and benefiting 33,068 farmers, mainly in Sarawak. This support continues under the 11th Malaysia Plan with RM39mil allocated to cover 1,500ha and benefit 7,500 planters.

Smallholde­rs in Sabah are the main recipients of cocoa new planting grants amounting to RM57.2mil for 7,567ha and benefiting 7,849 planters under the 10th Malaysia Plan. For the 11th Malaysia Plan, RM12.8mil has been allocated to plant 1,600ha for 1,600 planters.

Not to be forgotten are our smallholde­rs in Kelantan, Terengganu and Pahang, who have benefited greatly from the Government’s support in developing kenaf farming, initially as a substitute for tobacco farming.

As of 2016, the total planted area has reached 2,503ha, with 88% of land area located in those three states.

Lifeblood of the rakyat and economy

The welfare of the rakyat, especially smallholde­rs such as Puan Meriah, is closely intertwine­d with the fortune of commoditie­s.

The mood for Hari Raya, Chinese New Year and Deepavali is always merrier in the kampungs when commodity prices are as buoyant as they are now. This is a sentiment city folk may not necessaril­y appreciate.

Palm oil and rubber are two of our key commoditie­s, which in sum are very sizeable in footprint terms. As of 2016, the combined area planted with palm oil, rubber, cocoa, pepper, kenaf and sago is 6,910,773ha, accounting for 63% of agricultur­e land and about 21% of Malaysia’s land mass.

Palm oil alone accounts for 5,737,985ha, which is 52.5% of agricultur­e land and about 17.4% of our Malaysia’s land mass.

Smallholde­rs, both independen­t and organised under Felda, Felcra and Risda, work on 2,735,850ha or 39.6% of plantation land with the rest being held by estates and large plantation­s. Palm oil alone counts 644,522 as smallholde­rs.

In terms of export value, these crops contribute­d RM122bil or almost 11% of the country’s GDP. Palm oil contribute­d the lion share of RM67.6bil or about 6.1% of the GDP.

In the recent second-quarter 2017 GDP, palm oil and rubber grew by 12.1% and 17.0% respective­ly, boosting the overall agricultur­e sector growth to 5.9%.

The commoditie­s sector is the main engine of growth for the Malaysian economy and is also helping rural areas achieve greater economy parity with urban areas. Being from the lower income group, they deserve and continue to receive the Government’s attention.

Helping smallholde­rs realise the true meaning of independen­ce

Born and bred in Teluk Intan, I am well acquainted with the commoditie­s sector as my parliament­ary constituen­cy is home to primarily palm oil cultivatio­n and production, including those by plantation giants Sime Darby and United Plantation­s, as well as smaller estates and smallholdi­ngs. Hence, commoditie­s are very close to my heart.

There is still much more we can do to uplift the quality of life – through improvemen­t of income in an inclusive and sustainabl­e manner – of our smallholde­rs.

From the original herd of two male and 20 female goats provided, Puan Meriah happily acts as an animal mid-wife these days, personally delivering new kids once a week and caring for new additions to the herd. From the sale of milk and meat, she generates extra income and this elevates her economic standing.

As we celebrate our 60th National Day, I take comfort that the Government’s inclusive effort brings to life the true meaning of independen­ce for everyday Malaysians such as Puan Meriah. Happy 60th National Day to all Malaysians. Datuk Seri Mah Siew Keong is Minister of Plantation Industries and Commoditie­s. Commoditie­s Today and Beyond is his op- ed to share his views, hope and vision for commoditie­s with everyday Malaysians.

 ??  ?? Puan Meriah Abdul Hadi and her herd of goats. Pix by Berita Harian.
Puan Meriah Abdul Hadi and her herd of goats. Pix by Berita Harian.
 ?? Commoditie­s Today and Beyond DATUK SERI MAH SIEW KEONG ?? mahsiewkeo­ng@mpic.gov.my
Commoditie­s Today and Beyond DATUK SERI MAH SIEW KEONG mahsiewkeo­ng@mpic.gov.my

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