07/07/2011 (Borneo Post) - Sarawak’s plans to double the amount of land earmarked for oil palm plantations will act as a key driver for the state’s economic development, says Datuk Patinggi Tan Sri Alfred Jabu, Deputy Chief Minister and also state Minister of Modernisation of Agriculture and Minister of Rural Development.

Global publishing, research and consultancy firm, Oxford Business Group (OBG), quoted Jabu as saying this during an exclusive interview with OBG.

Jabu had said that the initiative, giving strong emphasis for oil palm estate plantation development was part of a major expansion programme earmarked for the industry.

The plans would see the amount of land allocated to the palm oil industry increased to two million hectares, placing the industry firmly at the heart of Sarawak’s agricultural development.

OBG said the full interview with Jabu will appear in its forthcoming guide, The Report: Sarawak 2011.

OBG also pointed out that the minister highlighted that a rise in international demand, combined with the advantages rubber offered as a non-perishable crop, heightened its importance in the state’s agro-business mix.

On another note, Jabu said Indonesia’s move to expand its own palm oil industry had exacerbated labour shortages across the agricultural sector.

He hoped Malaysia and Indonesia would forge links in bid to a jointly tackle this and other challenges facing the industry on a regional level.

OBG said that Jabu was optimistic that the Sarawak Corridor of Renewable Energy (SCORE) would produce more opportunities for the state’s upstream timber industry despite tough competition in the international market.

“While the state economy continues to grow and diversify, there is still a part for traditional industries to play.

“This is especially true for timber, which will see growth in demand from massive regional markets such as Japan, China and Taiwan. There is also plenty of room for development within the industry itself,” he added. — Bernama