Datuk Salahuddin Ayub
KUALA LUMPUR: The government will review the national agricultural policy to increase its contribution to the country’s Gross Domestic Product and raise the sector’s importance to the level seen in other developed countries.
Agriculture and Agro-based Industry Minister Datuk Salahuddin Ayub said the sector would not be allowed to lag behind, in line with the government’s aim to get the country to embrace modern agricultural practices.
“I will discuss with Prime Minister Tun Dr Mahathir Mohamad on the effective mechanism to assist farmers through an agricultural policy that is more friendly to farmers and fishermen.
“Young and small and medium enterprise (SME) agropreneurs must be assisted through incentives such as lower electricity tariff and taxation on imported agricultural equipment,” he said after officiating Agrobank Business Dialogue 2019 here yesterday.
The dialogue session was also attended by the ministry’s secretary-general Datuk Mohd Sallehhuddin Hassan, Agrobank chairman Tan Sri Mohamad Zabidi Zainal and Agrobank president and chief executive officer Syed Alwi Mohamed Sultan.
Salahuddin said he wanted to see reasonable electricity tariff rates implemented in agricultural areas.
In addition, tax rates for farming and fishing equipment such as ploughing machinery and fishing nets should be reduced, he added.
Salahuddin also urged Agrobank to explore quickly a new approach in financing for farmers.
“Besides ensuring profitability, the bank should also be more people-friendly to help the small farmers in obtaining loans with a reasonable amount of financing. “Agrobank should also continue to support SME entrepreneurs who have achieved success so that they can reach an even higher level,” he said.
On the National Agro-Food Policy, Salahuddin said the country’s self-sufficiency level (SSL) for rice had reached 71.9 per cent and his ministry was targeting a five-percentage
point growth over the next five years.
The ministry will also focus on developing the livestock industry, especially dairy cow breeding, where the SSL has reached 58 per cent.
Salahuddin said for the livestock industry, the government was planning to produce corn grain, the main source of animal feed.
Imports of the grain have hit RM3.2 billion annually.
The Sarawak state government had earmarked 100,000 hectares for agricultural development and the ministry would target sufficient acreage for planting corn and developing the animal feed industry, he added. —Bernama