Report

The growth strategies taken by the government for the development of Malaysian agribusiness sector are:

1. The government is to encourage private sector participation in food production on a large commercial scale - The investment by companies in their wholly owned subsidiaries for food production would be granted deductions equivalent to the amount of the investment as well as tax exemption of 100% on their statutory income for 10 years starting from the first year the company enjoys profit. Besides that, the losses incurred before and during the exemption period are also allowed to be brought forward after the exemption period of 10 years.

2. Review the remaining tariffs imposed on agricultural inputs – It gradually withdraw subsidies to promote efficiency. It is also prepare for challenges of market globalization (AFTA, WTO)

3. Development of Agro/Eco tourism - In an attempt to instill a love for nature and pride for the environment, the government and some NGOs have been actively promoting internal tourism especially nature / agriculturally-related spots have been actively by Government and some NGOs. For example of facility is the Bukit Cahaya complex, which is a show case for the agricultural activities in the country.

4. Provide an effective and efficient business environment - Improving land access and strengthening the facilitation bank support system, especially in credit and agricultural finance. The government also continuing airport, seaport, road, railway, communication and other infrastructural developments.

5. Intensifying R&D efforts, especially in downstream activities to enhance agricultural based industries and to produce more end products.

6. Enhancing sustainability of agriculture and food production - Lately a lot of interest had been shown about low environmental impact activities so that the agriculture must be practiced with the least possible damaging effect to the natural resource base, yet meet the highest health and quality standards. The organic farming approach is a new thing in Malaysia while eco-friendly farming has its own niche market and is rapidly growing.

7. Accelerate the adoption of labor saving techniques, mechanization and automation with the aim of reducing dependency on foreign labor.