Agriculture

Agriculture

The agriculture sector plays an important role in Malaysia's economic development - providing rural employment, uplifting rural incomes and ensuring national food security.

Excluding industrial crops such as palm oil and rubber, the agriculture sector contributed RM20 billion or 4 percent of Malaysia's GNI in 2009. Traditionally labelled as the poor man's sector, the face of agriculture is slowly changing as entrepreneurs in diverse businesses like swiftlet nest-ranching and large-scale paddy (rice) farmers are able to move up to Malaysia's high-income group.

 
List of EPPs
Agriculture
NoEPPs2020 GNI (millions)JobsLocationStatus
1.0Agriculture - EPP 1: Unlocking value from Malaysia's biodiversity through herbal products2,213.9 1,822  Commenced 
2.0Agriculture - EPP 2: Expanding the production of swiftlet nests4,541.2 20,800  Operational 
3.0Agriculture - EPP 3: Venturing into commercial scale seaweed farming in Sabah1,410.6 12,700  Work In Progress 
4.0Agriculture - EPP 4: Farming through integrated cage aquaculture systems1,38310,100  Commenced 
5.0Agriculture - EPP 5: Rearing cattle in oil palm estates1503,600  Work In Progress 
6.0Agriculture - EPP 6: Replicating integrated aquaculture model (iZAQs)1,38311,800  Commenced 
7.0Agriculture - EPP 7: Upgrading capabilities to produce premium fruit and vegetables1,571.59,075 Commenced 
8.0Agriculture - EPP 8: Strengthening the export capability of the processed food industry884.34,928 Operational 
9.0Agriculture - EPP 9: Introducing fragrant rice variety for non-irrigated areas221.7 563  Operational 
10.0Agriculture - EPP 10: Scaling up and strengthening paddy farming in Muda area1,033.6 (14,880) Operational 
11.0Agriculture - EPP 11: Scaling up and strengthening of paddy farming in other irrigated areas1,370.3(9,618) Commenced 
12.0Agriculture - EPP 12: Strengthening current anchor companies in cattle feedlots182.92,000 Work In Progress 
13.0Agriculture - EPP 13: Establishing dairy clusters in Malaysia326.3761 Operational 
14.0Agriculture - EPP 14: Establishing a leadership position in regional breeding services466.65,390 Operational 
16.0Agriculture - EPP 16: Investing in foreign cattle farming116.5- Operational 
17.0Agriculture - EPP 17: Investing in foreign cattle farming--  

Business Opportunities

Business Opportunity 1: Nutraceutical products

There is potential to capture value from the development and commercialisation of products based on other herbs. ation of new other herbs. Local manufacturers will be supported to move up the value chain through the provision of fnancial assistance, R&D support and marketing efforts.

Business Opportunity 2: Foreign distributor

There is the possibility of acquiring a foreign distributor with large distribution networks in strategic markets such as the USA, EU or China will be studied and pursued. This is to assist in overseas market penetration of Malaysian herbal products.

Business Opportunity 3: Ornamental fsh farming

Capturing increased value from ornamental fsh exports through establishing own branding and marketing channels as opposed to relying on other countries to export Malaysia's products. In addition, by intensifying R&D, introduce specifc pathogen-free fries to improve yield and quality.

Business Opportunity 4: Aquaculture feed mill

There is a business opportunity to develop feed mills for aquaculture.

Business Opportunity 5: Aquaculture export centre

There is a business opportunity to develop aquaculture export centres.

Business Opportunity 6: Snacks Industry

The US and European organic and natural snacks market is growing at more than 20 percent per annum. The EPPs will increase domestic production of fruits by 500,000 metric tonnes. Fruit that is not sold as fresh fruit will be separated and sent to a processing plant nearby.

New technologies, such as instant pressure drop, will be used to produce high quality dried fruit snacks from papaya, starfruit and pineapple that preserve more of the nutrition, taste, texture and volume of the fruit. Certifcation from international bodies will be obtained to enable the product to claim that it is natural, while relevant product registration will be performed to support functional and nutritional claims in target markets. The aim is to sell the products at a premium of 30 to 100 percent.

Business Opportunity 7: Free-range chicken rearing

Addition of 20,000 poultry per year within oil palm plantations to target the growing market for free range and organic chicken.

Business Opportunity 8: Button mushroom farming

Malaysia imports many types of mushrooms including dried, canned and fresh forms as local mushroom cultivation is lacking. However, Malaysia has favourable agro-climatic conditions for industrial production of mushrooms and companies that are successfully cultivating mushrooms on a large scale basis. The Department of Agriculture will facilitate the establishment of mushroom-farming businesses by providing standard operating procedures based on successful models and coordinating with Agrobank to provide funding.

Business Opportunity 9: Packaged fruit production such as jackfruit

Jackfruit products such as ready-to-eat fresh jackfruit, juice and vacuum-fried chips are growing increasingly popular in markets such as China. These minimally processed products are much simpler to export than the whole fresh fruit, which typically would not be able to meet the phyto-sanitary requirements of export markets. Anchor companies amongst medium-sized SMEs will be identifed to establish minimal processing operations including a hygienic processing room of between 15°C and 20°C and basic operations such as chilled-water immersion, cutting and pre-treatment.

Business Opportunity 10: FDI in herbal products

Attract foreign companies to collaborate in conducting research on Malaysian herbs to speed up the discovery of new bioactive compounds and accelerate product development. Upon successful fndings, the foreign companies will be given incentives to set up manufacturing facilities in Malaysia, enabling value capture of downstream activities.

Business Opportunity 11: Snack Food Industry (SFI) / Country Food Facilities

Relocate from Singapore to Malaysia the processing facilities for fruit, vegetables and meat to be made into frozen food or convenience meals. Malaysia can offer the competitive advantages of low labour cost, proximity to Singapore market and abundance of materials.

2012/03/05
Status:
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