20/02/2008 (The Daily Express, East Malaysia), Kota Kinabalu - Chief Minister Datuk Seri Musa Haji Aman said development of the oil palm industry in Sabah will continue to be given priority by the State Government.

He said based on the projection of the agriculture land size estimated at 2.2 million hectares, about 1.8 million ha had been identified suitable for oil palm plantations.

He attributed the increasing size of oil palm plantations in Sabah to the present political stability as well as steps taken by the State Government to encourage its growth apart from involvement of government agencies in developing agricultural lands.

A high market price of the commodity saw oil palm industry players including smallholders earning huge profit and it also generated export income of RM45.1 billion for the country last year 41.8 per cent more than the previous year, he said.

"The State Government will continue to facilitate growth of the industry in Sabah. Making us more proud is that Sabah has the biggest oil palm plantations in the country with 1.24 million hectare apart from being the nation's main palm oil producer," he said in his speech closing closing the Sabah Oil Palm Expo at Le Meridien Kota Kinabalu here Monday.

His speech was delivered by Tourism, Culture and Environment Minister Datuk Masidi Manjun.

Musa believed that the encouraging achievement was due to the co-operation and understanding among the mills, plantations, traders and small holders.

However, he said there is room for improvement in terms of this co-operation by providing infrastructure facilities like workers quarters and community development apart from increasing the wage of plantation workers by the plantation companies as Corporate Social Responsibility.

On the part of the government, he said it would continue providing allocation to facilitate the agriculture sector transformation by using modern technique and good agriculture agronomy practices.

The sector was also being involved prominently in the recently launched Sabah Development Corridor through the development of the Palm Oil Industrial Cluster (POIC) in the East Coast.

Musa, who is also Finance Minister, was confident that the continuous effort by the Plantation Industries and Commodities Ministry, Malaysia Palm Oil Board (MPOB) as well as industry players would help in boosting productivity of smallholders and the overall palm oil industry.

Meanwhile, Deputy Plantation Industries and Commodities Deputy Minister Datuk Anifah Aman said the government through his Ministry had implemented various specific assistance schemes to assist smallholders under the Ninth Malaysia Plan (9MP).

He said the government had set aside a total RM25 million for the eligible small holders under the quality oil palm seedling assistance scheme, which it hope able to lessen their burden apart from encouraging usage of better seedlings.

About 2,000 small holders involving 8,000 hectares of oil palm plantations are expected to benefit from the scheme, he added.

Anifah said that apart from that the Ministry had also allocated RM29.5 million for the two-line crop system assistance as well as integration of crops, where those implementing these systems stands to receive RM500 per hectare and RM1,500 per hectare.

Later, an allocation of RM4 million for the high quality oil palm seedlings assistance scheme to be disseminated to farmers in the 25 Parliamentary constituencies in Sabah was handed by MPOB Chaiman, Datuk Sabri Ahmad to Masidi on behalf of the State Government.

Also present were MPOB Director-General Datuk Dr Mohd Basri Wahid, several incumbent MPs and assemblymen as well as ministry officers and industry players.