Profiles - Agriculture becoming less important Issues

and Challenges Strategies

-general -example in RSN Terengganu

Percentage Distribution of GDP by Sector 1960-2000

Sector Agriculture Mining & Quarrying Manufacturing Construction Utilities Transport Wholesale and trade Finance Government Services Other Services Total

1970 27.4 13.0 13.1 3.6 1.0 3.4 10.8 8.1 8.8 2.0 100.0

1980 22.6 9.9 19.4 4.6 1.0 5.6 11.9 8.2 10.1 2.3 100.0

1990 18.1 9.4 26.0 3.4 1.8 6.7 10.6 9.3 10.3 2.0 100.0

2000 8.9 7.3 31.9 3.3 3.9 8.0 14.8 12.7 6.8 7.6 100.0

2005 8.2 6.7 31.4 2.7 4.1 8.8 14.7 15.1 7.6 7.8 100.0

2000 Number (000) % of Total Manpower 1,423.0 15.3

2005 1,405.7 13.3 15,752

2010 1,323.8 10.9 21,299

00-05 -0.2

05-10 -1.2

Value 13,115 Added/worker (RM at 1987 price) Source: RMK-9, pp. 84

3.7

6.2

2000 Commodity for industry Palm Oil 59.1 31.4

2005 60.6 36.7 13.0 10.5 0.4 39.4 12.6 8.1 3.4 15.2 100

2010 56.4 36.6 10.0 9.3 0.5 43.6 14.1 9.0 3.6 16.9 100

00-05 3.8 6.2 -0.3 3.9 -19.8 1.7 -0.9 6.6 1.4 1.1 3.0

05-10 3.2 4.9 -1.7 2.4 10.8 7.6 10.2 3.5 9.4 7.8 5.0

Forestry & Logging 16.4 Rubber Cocoa 10.0 1.3

Food Commodity 40.9 Fishery Livestock 13.4 8.1

Paddy 3.2 Source: RMK-9, pp. 82 Others 16.2 Total 100

Commodity Rice Fruits Vegetables Fishery products Beef Mutton Chicken meat Eggs Swine Milk Source: RMK-9, pp. 94

2000 70 94 95 86 15 6 113 116 100 3

2005 72 117 74 91 23 8 121 113 107 5

2010 90 138 108 108 28 10 115 115 132 5

Land Infrastructure Manpower Marketing Diversification/new products

 Land
Total State land area - 7.30 million ha. Suitable for agriculture 2.12 million ha. Developed as at 2004 - 1.31 million ha.

- Remaining Suitable areas might not be available for cultivation falls under various government land reserve, idle alienated land and state land under various stages of land application. - Development of idle agriculture land by private sector. Survey in 1999 (about 291,000 ha idle land).

Infrastructure - Insufficient and inefficient due to random and unorganized pattern of cultivations - To improve efficiency of food crop production
* In-situ organized farming with centralised management system should be given emphasis

Manpower - Shortage of manpower urban migration and sourcing of foreign workers. - adoption of appropriate mechanization and capital intensive production system.

Marketing - Lack of efficient marketing system - Private sector to look into their marketing needs - Promote and market own products

 Self-sufficiency

/ food security and import dependency Diversification of products/new products Organic farming/healthy-green

 NAP3

Overiding objective is maximisation of income through optimal utilization of resource in the sector Specific objectives are:
Enhance food security To increase productivity and competitiveness of the sector To deepen linkages with other sectors To conserve and utilize natural resources on a sustainable basis To create new sources of growth for the sector

 Increase

production Expand processing activities and diversify products Strengthen market and global network Increase income of farmers, fishermen Improve delivery system

Key issues

Development Strategy

Target 2020 High income Large-scale and integrated farming Skilled producers High- tech farming Easy access to information and marketing High productivity farming Efficient link with other sectors More than 40% land remain under forest

Low income More active and Small land holdings efficient private sector Low level of skills participation among producers Large scale and Low technology systematic farming Weak access to New sources for market activity and products Suitable land limited R & D including bioCompetition with other technology sectors for labour and Holistic and land sustainable Lack of infrastructure development Development of downstream activity Stronger marketing networks

1. To zone districts of Besut, Setiu 8. Focus on restructuring of small and Hulu Terengganu as Agro- holders Valley 9. Intensify development of 2. Conserve productive paddy aquaculture area and provide efficient 10. Foster the development of infrastructure and water agro-tourism and eco-tourism management 11. Facilitate competitiveness 3. Special focus to Horticulture through improve information and entreprises marketing 4. Modernize and conserve jetty 12. Establish halal-food hub for area in KT, Cendering, Kuala agro-processing Besut and Marang 13. Encourage new agro-based 5. Promote deep-sea fishing, activities aquaculture, 14.Expand used of modern 6. Encourage private sector technology and management participation in large scale food 15.Systematic management, production conservation and development of 7. Establish Agro-technology park, forest resources urban horticulture park and satellite farms