The Hindu Business Line : Malaysia for value-added agri-commodity exports

FOR the future expansion of Malaysia's plantation sector, which contributes significantly to the country's commodity exports (valued at Malaysia ringgit (MYR) 62.77 billion or 13 per cent of total exports) competitive use of limited land resources, the need of the downstream sector and the well being of small holders will have to be reckoned with, according to the Ministry of Plantation Industries and Commodities.

As the country rapidly moves towards achieving a "developed nation" status, the Malaysian Government places greater emphasis on promoting downstream processing of primary commodities into semi-processed and finished goods.

In addition to finding ways to increase production and productivity, Malaysia is keen to encourage optimal use of land and/or resorting to reverse investment in countries where climatic conditions are favourable for cultivation of commodity crops.

This is the focus of the Malaysian Commodities Showcase 2005, an exhibition of agri-commodities with the theme "Opportunities in Commodities: Dynamic, Sustainable and Homegrown" and an associated conference on biotechnology as an emerging frontier for plantation commodities during August 9-12.

Signs of increasing demand for commodities and derivative products in the world market resulting from population increase and income growth seem to have brightened the prospects for commodities from this Asian nation.

However, fluctuating prices, enhanced competition in the market place, protection of labour interests and commercialisation of research and development findings provide adequate challenge for the policymakers.

Malaysia's Ministry of Plantation Industries and Commodities (formerly, Ministry of Primary Industries) is responsible for formulation and implementation of policies and strategies pertaining to the development of the plantation and commodity sector.

In addition to promotion activities, the Ministry has also to counter negative campaigns by certain interests.

Some of the commodities of great economic significance for the country are palm oil (Malaysia is world's largest producer and exporter); timber products (export value MYR 20 billion); natural rubber (export earnings MYR 13 billion); cocoa and pepper.

Participants at the exhibition include companies in engineering, seeds and planting material, fertiliser, eco-friendly products made from palm fibre and promotional agencies.

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