KUALA LUMPUR, July 27 (Bernama) -- The plantation industry sees an exciting future under the Ninth Malaysia Plan (9MP) with the government recognising agriculture as the third engine of growth after manufacturing and services.

The Malayan Agricultural Producers Association (MAPA) noted that the allocation of RM11.44 billion for agriculture under the 9MP was a substantial increase of 47 percent over that in the 8MP, with an additional RM2 million allocated for biotechnology.

"Together with the earlier announcement in August 2005 of the National Biofuel Policy, this has set the stage for an exciting future for the industry," MAPA president Datuk Dr Mohd Noor Ismail said at the association's annual general meeting here Thursday.

Mohd Noor said the contributions of the plantation industry, particularly palm oil, to the government's export earnings have been significant.

He said in 2005, the crude palm oil production increased for the seventh year, helped by the increase in mature areas, enhanced plantation and mill management, recovery in fresh fruit bunches yield per hectare to 18.88 tonnes and improved oil extraction rate to 20.15 percent.

Export of oil palm products, palm oil, palm kernel oil, palm kernel cake, eleochemicals and other finished products rose by seven percent in 2005 to 18.62 million tonnes against 17.36 million tonnes in 2004 and the revenue amounted to RM28.6 billion, he added.

The association called on the government to have a long-term and consistent policy on the recruitment and employment of foreign workers who are still needed by the plantation industry.

Mohd Noor said MAPA proposed a one-stop centre for the recruitment of foreign workers as the process has been onerous, laborious and costly because of the numerous and inconsistent policies of the government.

"We believe that with this system, the recruitment of foreign workers could be made easier, faster and more efficient, which would go a long way towards improving the productivity and competitiveness of our products," he said.

He added that the critical issue associated with the recruitment of foreign workers was the increasing cost involved, including the levy, frequency of medical examination and medical charges.

-- BERNAMA