AGRICULTURE

• The head of HDO is in the process of receiving official appointment by MOA.

Establishment of HDO

• Schematics for Herbal Cultivation Park in Chegar Perah and Pasir Raja is completed. Begin construction by end of 2011.

Herbal Cultivation

Parks

• The head of R&D Clusters appointed with UPM and FRIM leading the Discovery Cluster, MARDI for Crop Agronomy, USM for Standardization & Product Development, IMR for Pre-clinical and Clinical Trials and CEPP UTM for Processing Technology.

R&D Clusters

• Nova, Biotropics and F.A Herbs appointed to be anchor company to champion the marketing of high-value herbal products.

Champion Anchor

Companies

Case for change: •Global demand for herbal products

is growing at 10.5% until 2020. •Ample opportunity to tap into

Malaysia’a rich biodiversity •Herbal products sold in the market

is of low-value, as most has not undergone pre-clinical or clinical trials.

Target: •3 herbal cultivation parks to

produce herbs on a commercial scale

•5 nutraceuticals with pre-clinical claim launched in 2012

•5 botanical drugs launched in 2015

EPP 1 – High Value Herbal Products

RM2.2 billion 2,000 RM841 million

GNI Jobs Investment

In progress

• 1GP guideline launched. The guideline will educate industry players in registering their bird house premises.

• A total of 900 bird house has been registered with Dept of Veterinary Service

Bird House

• Yan Ming Resources Sdn Bhd will invest RM5 million to establish a collection and processing centre

• The centre will be able to generate GNI RM88.7 million by 2020

Collection Centre and Processing

Centre

• A collaboration between Dept of Veterinary Services and University Putra Malaysia has been completed.

• The R&D will look into nutritional aspect of bird nest and development of other downstream products

R&D

Case for change: • Bulk of current products are sold

or exported as raw material without traceability system, but the value is in the downstream

• Lack of co-ordination in regulations enables current operators to sell illegally

Target: • 8,500 additional EBN premises

in East Malaysia, 4,500 in West MY.

• Increase revenue from USD 0.5B to USD 3.6 B in 2020 from cleaning locally and development of downstream product

EPP 2 – EBN Swiftlet

RM4.5 billion 20,800 RM1.8 billion

GNI Jobs Investment

In progress

In progress

In progress

• 3000 ha gazetted for seaweed in Semporna, Kudat, Kunak and Lahad Datu in Sabah

Establishment of Seaweed Industrial

Zone

• Yayasan UMS appointed as SPV to manage the implementation of the mini estate by the appointed participating companies

Establishment of SPV

• 1st batch of 6 participating companies selected to start cultivation of seaweed. Letter of offer to the companies was presented by YB Minister of Agriculture on the 28th April 2011.

Selection of participating companies

• UMS champions the R&D on improvement of farming technology, product development programme to determine the diversification of semi-finished and finished product.

Research, development and commercialization

Case for change: • Current production uses

traditional farming which requires intensive labour, not attractive to potential business entrants

Target: • Increase yield from

1.5MT/ha/year to 5.0MT/ha/year (251% increase) in 2020

• Increase production from 13,500 MT to 150,000 MT in 2020

EPP 3 – Mini Estate Concept for Seaweed Industry

RM1.4 billion 13,000 RM703 million

GNI Jobs Investment

In progress

Case for change: • Growth in aquaculture

production created a market for premium products from Malaysia

• However, our country still lags behind in production quantum as compact to Thailand, Vietnam, India, Indonesia.

Target: • To increase aquaculture shrimp

and fin-fish production above existing projection by focusing only on a few species (Tilapia, Seabass, Grouper) to create scale and strengthen access to market

EPP 4 – Farming using Integrated Cage Aquaculture

RM1.4 billion 13,000 jobs RM717 million

GNI Jobs Investment

• Identified potential areas for cultivation: Tasik Bakun, Tasik Pedu, Tasik Kenering, Tasik Kenyir, Tasik Temenggor, Batang Ai, Sg johor, Pulau Tioman, Pulau Bidong, Pulau Rhu, Pulau Langkawi

Sites for cage farming

• Cage farming of Tilapia (Genomar Supreme Tilapia) with new entrepreneurs

• 2 modules (40 units of cages) for each 20 participants

• Expected to be producing (staggered) by September 2011

Synergy Farming

In progress

Grouper Sea bass Tilapia

Case for change: • Integration of cattle in oil palm

capitalizes on one of our competitive advantages while ensuring sustainable farming practices

• Integrated operations coupled with a direct to market downstream chain will enable Malaysian beef production to be more competitively priced

Target: • To add another 300,000 heads of

cattle within existing oil palm plantations

EPP 5 – Rearing Cattle in Oil Palm Estates

RM150million 3600 jobs RM343 million

GNI Jobs Investment • 25 oil palm plantations

companies

• Selection based on criteria e.g. minimum 1000ha of plantation, dedicated management team for cattle integration

Selection of anchor

companies

• Overseeing the implementation of the project

• To manage and solve probable issues pertaining to the oil palm plantations

Formation of Cattle Integration

Development Committee

• Emphasize on systematic rotational grazing, adherence to GAHP and breeding program for the cattles while synergizing with the estate owners

Implementation of Best Practices In

progress

Systematic

rotational grazing

In progress

Herdsman Breeding

programme

Coordination with

estate activities

Case for change: • Integrated Zone for Aquaculture

(IZAQ) will be a new approach towards industrial scale aquaculture farming to target premium export markets

Target: • An aquaculture park with large

area dedicated to the organized production of high quality, fully certified shrimp for the premium market.

EPP 6 – Replication of IZAQ

RM1.27billion 12k jobs RM3.15 billion

GNI Jobs Investment • 3 anchor companies (Blue

Archipelago Berhad, LKPP Corporation and Hannan Corporation Sdn Bhd) appointed by June 2011

Selection of anchor

companies

• Sea Horse Corp. Berhad (Sarawak)

• Ko-Nelayan Berhad (Sabah)

Companies in waiting

• LKPP Corp Berhad (282 ha)

• Hannan Corporation Berhad (142 ha)

• Asia Aquaculture Sdn. Bhd. (414 ha)

Companies under

construction In progress

In progress

IZAQ Grow-out

ponds (BAP /

GlobalGAP)

Premium Markets

Processing

(HACCP, GMP & ACC)

Certification,

Accreditation &

Verification

system

on site

Certification Standards: Entire Production Chain

Hatchery Feedmill

• MAFC appointed as anchor for fruits - papaya, rock melon and starfruits. FELDA appointed for intercropping of banana and pineapple with oil palm.

Selection of Anchor

Companies

• DOA identified several TKPM (eg Lanchang) for the expansion of anchor companies. In the process for tender to upgrade infrastructure and build cold room / CPPC.

Upgrading of TKPM

• Expansion of Lojing to become suitable for highland plantations. Currently DOA is in discussion with UPEN Kelantan

Expansion of Highland Vegetable

• Felda has planted 985 ha of banana in various FELDA plantation and 526 ha of pineapple of N36 and Moris variety.

Intercropping with Palm Oil

Case for change: •Malaysia has the advantage of

having the suitable climate, appropriate rainfall and unique location between East and West.

•Agrifood trade deficit has worsened by more than RM 100 million each year due to higher income and lifestyle change.

Target: •Production of 570,000 tonnes in

2020, with 94.7% dominated by tropical fruits and 84% of produce for export market

•Increase in yield between 0.4x to 2.5x

•22% of participating farmers will draw income of more than RM 5,500

EPP 7 – Premium Market for Fresh Fruits & Vegetables

RM1.6 billion 9,100 RM1.4 billion

GNI Jobs Investment

In progress

In progress

In progress

Case for change: • Increasing demand for packaged

foods (US: 27% CAGR, 1997-2006) posts potential opportunities for SMEs.

Target: • Development of an integrated

food park will address current fragmented and small scale processed food companies

EPP 8 – Food Park / Incubator

RM883 million 5k jobs RM574 million

GNI Jobs Investment • 1 company (Rukun Saksama Sdn Bhd) has been appointed as a Participating Company in June 2011.

Scoping, identification and selection

• Negotiation is currently conducted with Jabi Rice Mill Sdn Bhd and Pertubuhan Peladang Negeri Johor to utilise TEMAN Ipoh as a food park

Scoping, identification and selection

• MAEPS through MARDI is in process to provide the necessary legal documentations on rentals etc concerning the usage of the ground floor, Hall D as a hypermarket by Rukun Saksama Sdn. Bhd

Investment Appraisal

In progress

In progress

Ground Floor - an alfresco-style food ground floor to be renovated as an air-conditioned hypermarket by Rukun Saksama Sdn. Bhd. Samples of agro-based products

Case for change: • 54% out of 4.6 million household

surveyed showed preference for fragrant rice, opportunity to cater to the local market

• Need to reduce import bill of RM 400 – 500 million annually for importation of fragrant rice

Target: • Production of 73,000 tonnes by

2020 to substitute up to 65% of annual importation and generating revenue up to RM 362 million

EPP 9 – Fragrant Rice Variety in Non-Irrigated Areas

RM 133 million 4,998 RM19.2 million

GNI Jobs Investment

• MARDI appointed Sime Darby to spearhead the commercialization of MRQ76 and Infoculture Sdn Bhd for MRQ74

Selection of Anchor

Companies

• 40 hectares of land in Sik and Semanggul has been planted with MRQ76.

• 31 hectares of land in Kg Ewa (Langkawi), Wang Tepus and Titi Tiinggi has been plated with MRQ74. Infoculture is identifying land in Pahang and Kelantan for expansion.

Planting of fragrant rice

• MARDI has conducted Multi Location Trial for new fragrant rice varieties in Sik and Semanggol

R&D for Improvement

of Variety

In progress

In progress

Case for change: • Current paddy farm operated on

a small-scale basis at average size of 2.0 ha per farmer, leads to poor farm management and co-ordination of water movement and mechanization

• 25% of farmers already passive • Kuala Muda is the ‘rice bowl’ of

Malaysia but has the least density of irrigation

Target: • 50,000 ha of land amalgamated

and managed through estate farming in 2020

EPP 10 – Strengthening Productivity of Paddy Farming in MADA

RM1.0 billion - RM2.7 billion

GNI Jobs Investment • BERNAS and MADA was announced

to establish the SPV to manage the paddy estate farming over 50,000 ha in MADA in May.

Establishment of SPV

• 3,118 ha was agreed and signed by 1,058 landowners in MADA for the implementation of estate farming managed by the SPV. Target for 2011 is to amalgamate 5,000 ha.

Land Amalgamation

for Paddy Estate

• Survey work, design and planning for the improvement of irrigation infrastructure in MADA is in the planning process based on land amalgamated

Improvement of Irrigation

Infrastructure

• MARDI was awarded the role to perform R&D for continuous development of high-yielding variety to be planted commercially in MADA

R&D for Improvement of

Variety

In progress

In progress

In progress

In progress

Case for change: • 17,500 ha adjacent to current 8

granaries can be integrated as part of granary to enable better water supply management

• Productivity in large areas such as Batang Lupar and Kota Belud is low due to lack of irrigation and mechanization, providing ample opportunity for improvement

Target: • Improve productivity by 50-80%

and increase in net paddy production of 433,936 tonnes by 2020

EPP 11 – Strengthening Productivity of Paddy Farming in Other Granaries

RM1.0 billion - RM2.7 billion

GNI Jobs Investment

• Paper for formation of IADA in Batang Lupar has been submitted to MOA for approval

Formation of IADA

• DOA Sarawak has conducted survey and received the agreement of 174 families to amalgamate 200 ha of land for planting season in September.

Land Amalgamation

for Paddy Estate

• Survey work, design and planning for the improvement of irrigation infrastructure in Lingga-Banting and Bijat-Stumbin is in the process of issuing tender.

Improvement of Irrigation

Infrastructure

• DOA Sarawak is in the progress of collaborating with MARDI for the R&D process to document and set up a seed bank for the local varieties in Sarawak

R&D for Improvement of

Variety

In progress

In progress

Case for change: • There is an increasing demand

for fresh beef and projected production levels from domestic cattle cannot support this growth

• Beef operators from the private sector are currently involved in upstream sector and very few are integrated throughout the value chain

Target: • To support the increasing

demand for fresh beef and projected production levels from domestic cattle by attracting more feedlot entrepreneurs into the market

EPP 12 – Expansion of Feedlotting

RM182 million 2k jobs RM634 million

GNI Jobs Investment • 51 satellite farms completed,

ready to be transferred and managed by anchor companies

• FELDA Gedung Makanan Negara (Negeri Sembilan) appointed as one of the Participating Company in May 2011

Potential feedlot farms

• EP Marketing (Kelantan)– Ready to bring 500 heads cattle 1st stage in July 2011

• Duta Sierra - Preparing agreement and terms for operators in Johor – plan to bring in cattle in August 2011

Anchor Companies

• 28 operators for Negeri Sembilan just endorsed by State Government

Operators In progress

In progress

Case for change: • The market for liquid milk in

Malaysia is only a small portion of the overall dairy industry, but is poised for strong growth

• Current domestic dairy farmers are mostly small scale farmers, and most of the milk produced is sold directly to consumers

Target: • Conversion of existing cattle

farms to become commercial dairy clusters, which involves in downstream activities

EPP 13 – Dairy Cluster

RM326 million 760 jobs RM709 million

GNI Jobs Investment

• Semenanjung (Melaka,Johor,Perak & Negeri Sembilan)

• Whole of Sabah

Selection of Dairy Cluster

• 1 anchor company (Evergreen Livestock & Persatuan Penternak Tenusu Sabah) selected in May 2011

Identification of Anchor

• Selection of dairy farmers in clusters

• Purchase of 18000 liter milk truck through JKR

• Strengthen Alor Gajah, Melaka milk laboratory through BPSP

• Purchase of lab equipment by DVS

Implementation

In progress

• Procurement of equipment for the Center for Marker Discovery and Validation (CMDV) in MARDI was completed. CMDV will pioneer in the usage of marker-assisted selection in breeding for crops, aquaculture and livestock. Target to open for services in July 2011

Establishment of CMDV

• Cabinet paper for the formation of the National Seed Council is in the process of approval.

National Seed Council

• MOA and Biotechcorp is attracting the participation of companies involved in the breeding of crops/livestock/aqua to develop their genetic material using MAS technology

Development of Markers

Case for change: •76% of seeds used are imported

with minimal effort to produce new local variety

•Breeding activities are mainly using conventional methods, low focus on research and technology for improvement

Target: •High-quality seeds/breeding

material developed by Marker-Assisted Selection (MAS) technology to be available in the local market by 2015

EPP 14 – Seed Industry Development

RM467 million 5,400 RM273 million

GNI Jobs Investment

In progress

In progress

• Biotechcorp has identified several companies in agbiotech e.g CJ-Arkema, Sabah Softwood Hybrid Fertilizer.

Selection of MNCs in

Agbiotech

• Biotechcorp is engaging with identified companies to secure investment into the country. MOA will engage state biotech companies who have identified potential investors.

Engagement with

Companies

• Sabah Softwood Hybrid Fertilizer is constructing their plant in POIC Lahad Datu.

Setting up Company

Base

Case for change: •Regulatory pressure on various

pesticide active ingredients (MRL) makes biological solutions increasingly attractive

•Boom in biotechnology industry in global scenario increases the need for local scenario to explore new area of agbiotech and to share knowledge/transfer technology into Malaysia

Target: •3 major foreign direct investment

to be secured for setting up base in Malaysia by 2020.

EPP 15 – Participations of MNCs in Agriculture Biotechnology

RM820 million 1,200 RM1.9 billion

GNI Jobs Investment

In progress

In progress

In progress

Case for change: • Regardless of local production

capacity, a significant percentage of our dairy and beef production will be imported due to geographical constraints; mainly land, climate and expertise

• Beef consumption globally is expected to surge due to increased demand from developing economies, particularly China and the Middle East

Target: • To secure a consistent and

affordable source of live animals for breeding, feedlotting, and dairy operations over the next 10 years

EPP 16 – Overseas JV / Acquisition

RM115 million Nil RM1.28 billion

GNI Jobs Investment • 4 companies (SEDC Sarawak,

National Feedlot Corporation, Ternakan Kamran Sdn Bhd and Bumi Yadanar Sdn Bhd) appointed as Participating Companies

Selection of Participating companies

• Several other interested companies (other than the ruminant industry) will be invited to participate in this EPP

Inviting Other Interested Companies

• Appointed Participating Companies will be matched into other EPPs related to livestock and other potential players

Business Matching

In progress

In progress