The agriculture sector is set to have a bigger role in Sarawak’s economic growth as its contribution rate is set to touch higher at 13.1 per cent by 2030, MIDF Research observes. – Bernama photo
KUCHING (June 23): The agriculture sector is set to have a bigger role in Sarawak’s economic growth as its contribution rate is expected to reach 13.1 per cent by 2030, MIDF Amanah Investment Bank Bhd research division’s (MIDF Research) analysts observed.
In its report, the research team pointed out that Sarawak’s agriculture sector contributes about 14.6 per cent to the national gross domestic product, firmly establishing it as a key player in the agricultural landscape.
Sarawak also has the largest oil palm planted by area at 1.622 million ha (28.6 per cent) in Malaysia with total mature and immature trees comprising 1.489 million ha (91.8 per cent) and 133,458 ha (8.2 per cent) respectively.
In addition, Sarawak has the second largest CPO production in the country at 4.005 million tonnes with average May prices of RM3,743.0 per tonne.
“We expect there will be a gradual shift from non-renewable energy to renewable energy industries namely hydrogen, solar and oil palm biomass in the next decade.
“However, the agriculture sector is set to have a bigger role in Sarawak as its contribution rate is set to touch higher at 13.1 per cent by 2030, opposite to 12MP’s lower target rate of 10.1 per cent by 2025.
“We believe diversification of agriculture products and less dependence on palm oil would be the main strategies to support the sector’s growth,” MIDF Research opined.
To elevate the palm oil ecosystem, it pointed out that one of the Post Covid-19 Development Strategy 2030 (PCDS) priorities, under the EPU of Sarawak, is the growth of oil palm value chain, throughout expansion of oleochemical plant.
“Despite the fact around 84 milling and around six refining operations are well established in Sarawak, there were only one high biodiesel plant establishments and none oleochemicals plant.
“Through the Palm Oil Industrial Cluster (POIC) proposal project in Bintulu, the state is able to accelerate the development of the palm oil industry moving in the right direction in downstream value-adding products.
“We view this classification industrial serves the needs of high value chains of palm oil products, given that the Bintulu port oil palm tonnage handled in 2022 reached 3.96 million metric tonnes (5.3 per cent y-o-y) from the 3.76 million metric tonnes handled in 2021, which approximately accounts for 24 per cent of total Malaysian palm oil exports, based on Bintulu Port data,” it said.