Agriculture & Plantations
From The Report: Malaysia 2014
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A major push to boost efficiency in the agriculture and plantations sectors is under way, with the government allocating some RM6bn ($1.8bn) to the sector in its 2014 budget to support a drive for greater productivity, among other strategies. The bulk of agriculture’s contribution to GDP comes from plantation crops, which accounted for 36.5% of the sector’s value in 2012, followed by rubber (8.2%), forestry and logging (11%), poultry (7.3%) vegetables (8%), fishing (14.4%) and fruits (4.1%). The state aims to transform the sector from its small-scale production model into an agribusiness-based sector with more efficient holdings producing more value-added products. Meanwhile, higher-value products will require the implementation of higher-quality standards and well-certified production processes when it comes to ensuring sustainability. In the future, the sector may see its valuable contribution to the country’s economy continue to grow, along with prosperity of rural and urban populations. This chapter contains an interview with Emir Mavani, Group President & CEO, Felda Global Ventures. (FGV).

Articles from this Chapter

Overview

A key contributor: Boosting efficiency is a major objective for the sector
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Making up two National Key Economic Areas (NKEAs) and responsible for around 7% of the country’s GDP, the agriculture and plantations sector continues to be a vital part of Malaysia’s economy – and a major magnet for both domestic and foreign investment. The sector is also a major employer, helping to tackle rural poverty and address urban drift. A significant contributor to export revenues, it is now receiving greater encouragement from the government, as the country seeks to ensure food security…

Interview

OBG talks to Emir Mavani, Group President & CEO, Felda Global Ventures (FGV)
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Interview:Emir Mavani As many nations move to comply with greenhouse gas emissions targets, what is being done to promote Malaysian biodiesel? EMIR MAVANI: Two pressures will drive this. First, since 2011 the Malaysian government has required the staged introduction of B5 – petroleum diesel blended with 5% palm-oil biodiesel – with full implementation throughout Malaysia set to be completed by the end of 2014. Second, the government is keen to do the same for B7 (blended with 7%) by January…

Analysis

In pole position: Expanding land under cultivation for the palm oil industry
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Malaysia is a world leader in the production of crude palm oil (CPO) – and in its development not only as a food product, but as an alternative energy source, too. The commodity looks set for a year of higher prices and demand in 2014-15, with Malaysia plantation companies looking to spread acreage ever further afield. The palm oil industry is going through some profound changes, with the demands of consumers for more sustainably sourced products leading to heightened controls on production and…

Analysis

Further afield: Rubber, timber, pepper and cocoa are significant export earners
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While palm oil has come to dominate the Malaysian plantations sector in recent years, the country is also an important producer of a variety of other plantation crops. Indeed, for many years Malaysia has been one of the world’s leading rubber producers, while the country also has significant timber, cocoa, pepper, jathropa, kenaf (similar to jute, or hemp) and tobacco plantations. All of these make an important contribution to export revenues and to rural employment. Acreage & Output Malaysia…