Strategic Thrusts In Place To Develop Agriculture In ECER, Says Issace John 11 July 2008

July 11, 2008 20:29 PM

Strategic Thrusts In Place To Develop Agriculture In ECER, Says Issace John


KUALA LUMPUR, July 11 (Bernama) -- Agriculture activities within the East Coast Economic Region (ECER) are geared for a boost as strategic programmes are primed to enhance the sector.

ECER Development Council Chief Executive Datuk Jebasingam Issace John said such programmes were important as agriculture in the region formed one of the six key economic clusters set for further growth in the next 12 years.

"Consequently, these high-impact and catalytic programmes will raise income and reduce poverty in focus development areas."

'Strategies to develop the ECER's food sustainability contained in the master plan will accelerate growth in a viable, equitable and sustainable manner, he said in the face of rising food costs at a seminar held in conjunction with the Ninth Malaysia International Food and Beverage Trade Fair.

Encompassing crops, fish and livestock, these strategies include expanding large-scale commercial farming and ensuring wider application of modern technology, Issace John said.

He also said the ECER planned to implement balance of trade plan in food production.

He said participation of the private sector as anchor companies and development of value-added activities, improving supply chain management, strengthening marketing and global networking, would also go a long way in fast-tracking the agriculture sector.

To improve the region's livestock clusters, including beef, mutton and poultry, he said, traditional farmers in targeted concentration areas would be re-organised into commercial cattle and goat-farming clusters.

He said cattle would be integrated with oil palm plantations while breeder goat stocks at Kuala Berang, Terengganu, and cattle at Muadzam Shah, Pahang, would be distributed to commercial farmers for breeding and fattening.

In fisheries, he said, fish seed would be produced for commercial farming while research and development (R&D) would be enhanced, particularly in downstream activities of fish processing, packaging and development of value-added products.

R and D would be directed towards increasing productivity, reducing production cost and increasing product competitiveness besides focusing on developing new product lines for the domestic market, he said.

"At the same time, the ECER encourages income from fisheries to be supplemented through recreational fishing activities which will give a two-pronged income boost.

"To support these upstream agro activities, the ECER master plan also calls for more food processing parks and micro-food processing centres.

"In line with this, two halal production parks will be developed in Gambang, Pahang, and Pasir Mas, Kelantan, to increase the participation of local Bumiputera producers in the domestic market," he said.

Issace John also said the ECER's newly-launched incentives would also boost the region's food production and provide a stimulus to the agriculture sector.

"This is because crop production and processing, livestock (excluding poultry) and fisheries companies undertaking the projects will be given income tax exemption for 10 years starting from the date the company derives profit or income tax allowance amounting to 100 per cent on qualifying capital expenditure for five years," he said.

He said exemptions from tax would also be made on dividend paid to shareholders and import duty and sales tax on raw material, components, machinery, spare parts, consumables and equipment on condition the items are not available locally.

Individual or corporate investors investing in crop production and processing, livestock (excluding poultry) and fisheries would be entitled to a deduction equivalent to the amount invested in seed capital and early-stage financing, he added.

-- BERNAMA