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Profiles- Agriculture becoming less important

Issues and Challenges Strategies

-general

-example in RSN Terengganu

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SectorSector 19701970 19801980 19901990

20002000 20052005

AgricultureAgriculture 27.427.4 22.622.6 18.118.1 8.98.9 8.28.2

Mining & QuarryingMining & Quarrying 13.013.0 9.99.9 9.49.4

7.37.3 6.76.7

ManufacturingManufacturing 13.113.1 19.419.4 26.026.0

31.931.9 31.431.4

ConstructionConstruction 3.63.6 4.64.6 3.43.4

3.33.3 2.72.7

UtilitiesUtilities 1.01.0 1.01.0 1.81.8

3.93.9 4.14.1

TransportTransport 3.43.4 5.65.6 6.76.7

8.08.0 8.88.8

Wholesale and tradeWholesale and trade 10.810.8 11.911.9 10.610.6

14.814.8 14.714.7

FinanceFinance 8.18.1 8.28.2 9.39.3

12.712.7 15.115.1

Government ServicesGovernment Services 8.88.8 10.110.1 10.310.3

6.86.8 7.67.6

Other ServicesOther Services 2.02.0 2.32.3 2.02.0

7.67.6 7.87.8

TotalTotal 100.0100.0 100.0100.0 100.0100.0

100.0100.0 100.0100.0

Percentage Distribution of GDP by Sector 1960-2000

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2000 2005 2010 00-05 05-10

Number (000) 1,423.0 1,405.7 1,323.8 -0.2 -1.2

% of Total

Manpower

15.3 13.3 10.9

ValueAdded/worker(RM at 1987price)

13,115 15,752 21,299 3.7 6.2

Source: RMK-9, pp. 84

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2000 2005 2010 00-05 05-10

Commodity forindustry

59.1 60.6 56.4 3.8 3.2

Palm Oil 31.4 36.7 36.6 6.2 4.9

Forestry & Logging 16.4 13.0 10.0 -0.3 -1.7

Rubber 10.0 10.5 9.3 3.9 2.4

Cocoa 1.3 0.4 0.5 -19.8 10.8

Food Commodity 40.9 39.4 43.6 1.7 7.6

Fishery 13.4 12.6 14.1 -0.9 10.2

Livestock 8.1 8.1 9.0 6.6 3.5

Paddy 3.2 3.4 3.6 1.4 9.4

Others 16.2 15.2 16.9 1.1 7.8

Total 100 100 100 3.0 5.0

Source: RMK-9, pp. 82

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Land

Infrastructure Manpower

Marketing

Diversification/new

products

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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 undervarious government land reserve, idle

alienated land and state land undervarious stages of land application.

- Development of idle agriculture land byprivate sector. Survey in 1999 (about

291,000 ha idle land).

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Infrastructure- Insufficient and inefficient due to

random and unorganized pattern ofcultivations

- To improve efficiency of food crop

production

* In-situ organized farming with

centralised management system

should be given emphasis

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Manpower

- Shortage of manpower urbanmigration

and sourcing of foreign workers.

- adoption of appropriate mechanizationand

capital intensive production system.

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Marketing

- Lack of efficient marketing system

- Private sector to look into theirmarketing needs

- Promote and market own products

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Self-sufficiency / food security andimport dependency

Diversification of products/new productsOrganic farming/healthy-green

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Overiding objective is maximisation ofincome through optimal utilization of

resource in the sector Specific objectives are:

NAP3

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 sustainablebasis

To create new sources of growth for the sector

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Increase production

Expand processing activities and

diversify products Strengthen market and global network

Increase income of farmers, fishermen

Improve delivery system

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Key issues DevelopmentStrategy

Target 2020

Low incomeSmall land holdingsLow level of skills

among producersLow technologyWeak access tomarketSuitable land limitedCompetition with other

sectors for labour andlandLack of infrastructure

More active andefficient private sectorparticipation

Large scale andsystematic farmingNew sources foractivity and productsR & D including bio-technology

Holistic andsustainabledevelopmentDevelopment ofdownstream activityStronger marketing

networks

High incomeLarge-scale andintegrated farming

Skilled producersHigh- tech farmingEasy access toinformation andmarketingHigh productivity

farmingEfficient link with othersectorsMore than 40% landremain under forest

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1. To zone districts of Besut, Setiuand Hulu Terengganu as Agro-Valley

2. Conserve productive paddyarea and provide efficientinfrastructure and watermanagement

3. Special focus to Horticulture

entreprises4. Modernize and conserve jetty

area in KT, Cendering, KualaBesut and Marang

5. Promote deep-sea fishing,aquaculture,

6. Encourage private sectorparticipation in large scale foodproduction

7. Establish Agro-technology park,urban horticulture park and

satellite farms

8. Focus on restructuring of smallholders9. Intensify development of

aquaculture10. Foster the development ofagro-tourism and eco-tourism11. Facilitate competitivenessthrough improve information and

marketing12. Establish halal-food hub foragro-processing13. Encourage new agro-basedactivities14.Expand used of moderntechnology and management15.Systematic management,conservation and development offorest resources

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