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Last Updated: Sep 25th, 2006 - 11:36:04 |
KUALA LUMPUR, Sept 1 - The government, through Khazanah Nasional and Bank Negara Malaysia, will set up two agriculture funds totaling RM400 million to boost the agriculture industry.
Prime Minister Datuk Seri Abdullah Ahmad Badawi said Khazanah Nasional would establish a RM200 million fund to provide venture capital to finance new technology-intensive agricultural projects.
The funds would come jointly the government, Khazanah Nasional and the private sector, he said when tabling the 2007 Budget in the Dewan Rakyat Friday.
Abdullah, who is also Finance Minister, said that in addition, Bank Negara Malaysia would establish another RM200 million agriculture fund to invest in integrated agriculture and livestock projects.
He urged farmers currently involved in no longer viable agricultural activities such as tobacco planting in Kelantan to shift to more profitable agricultural activities.
"Currently some agricultural sector activities are no longer viable, such as planting of tobacco, especially in Kelantan.
"The farmers undertaking these activities should therefore shift to other crops or venture into other industries that can generate higher income," he said.
The prime minister said that to facilitate the transition, farmers would be provided with access to financing facilities including from existing funds under Bank Pertanian.
Abdullah also encouraged cooperatives to participate actively in agricultural projects and urged entrepreneurs undertaking the projects especially in rural areas to work in partnership with the cooperatives.
He said the government had allocated RM3.6 billion in the 2007 Budget for the agricultural sector to increase productivity and efficiency in agricultural production and expand marketing capabilities.
A substantial part of the allocation will be used to:
First: increase the Fund for Food by RM300 million to a total of RM1.9 billion to finance food production, To date a total of RM1.6 billion has been approved to about 9,800 borrowers.
Second: establish a Non-Food Agriculture Credit Scheme with an initial allocation of RM20 million to encourage farmers to venture into non-food agriculture such as floriculture and kenaf.
Third: implement livestock projects through the Veterinary Department, LPP, Mada and Kada with an allocation of RM111 million. A sum of RM40 million is also allocated for the implementation of the Beef Valley project in Gemas, Negeri Sembilan.
Fourth: develop the agricultural industry including the Ornamental Fish Cluster Projects in Penang, Kedah and Perlis as well as Freshwater Fishery Research Centre in Negeri Sembilan with an allocation of RM92 million.
Other aqua culture projects will also be developed nationwide.
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