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Palm Oil, A Catalyst for Sarawak’s Economic Growth
calendar17-03-2015 | linkNew Straits Times | Share This Post:

17/03/2015 (New Strait Times) - The oil palm industry has become an important sector in Sarawak, thanks to the increasing global demand for palm oil and its products; which acts as a catalyst to increase the income of rural folk and contribute towards sustainable economic growth.

Currently, more than one million hectares of land in the state had been planted with oil palm, and the state government has planned to double the hectarage, said Deputy Chief Minister Tan Sri Alfred Jabu Numpang.

“In recent years, we have been putting greater emphasis on this sector, as we can see its potential in the global market, from food products to biofuel. The increasing demand for products of this crop also contributed to the state’s revenue and economic growth.

“Besides, it offers many opportunities to rural communities to generate more income,” said Jabu.

Jabu, who is also the state Agriculture Modernisation Minister, said oil palm’s produce comprised of palm oil, palm kernel oil, palm kernel cake, oleochemicals, biodiesel and other finished products. About 20 years ago, the land allocated for oil palm plantations was about 55,000ha and there has been a big increase in recent years.

The state government has been encouraging the rural communities to plant oil palm through the 4ha oil palm per family policy about four years ago.

“Basically, it is the same mechanism we used for the rubber industry, where the state government and the Sarawak Land Consolidation and Rehabilitation Authority would help smallholders plant high-yielding oil palm or rubber, with 4ha per family," he said.

By the time the trees are matured or ready to be tapped, each family can generate a stable income of between RM2,000 to RM3,000 per month.

“It will take about three years for oil palm to start bearing fruits. In the meantime, we will help the rural communities plant other food crops that are suitable for their land,” he said.

He added that the project was aimed at helping rural people to free them from poverty.

Currently, they might be earning about RM800 to RM1,200 per month. Moreover, traditional farmers, might have an uncertain monthly income because of the lack of agricultural knowledge, techniques or tools.

“We expect most of the low income families in the rural areas to participate in this scheme, and to achieve zero poverty by 2020. The most powerful tool to speed up the economic growth and development in the interior areas is through agriculture and education,” he added.

Sarawak has a population of 2.4 million with about 47 per cent of them living in rural areas thus, bringing development to the interior would be a great challenge. However, Jabu said he was confident of achieving the target with the cooperation from the people and relevant agencies.

“The people must understand and believe in our policy. Only then can we work together to achieve our goal,” he said.

Meanwhile, 46 agricultural substations will be set up in rural areas throughout the state. Each station will have an officer who has a diploma in agriculture, and is assisted by other staff. The station will act as a one-stop centre for agricultural related matters. It is equipped with latest knowledge and technologies, and will channeling assistance and allowances given by the state government.

“We will also be placing officers at the station to take care of their welfare. They are also tasked to raise awareness on the importance of education among the farmers and their children. This is to ensure their children study harder, and aim higher with the parents willing to invest in education,” he said.

The programme also targets the Penan community where they are also taught to plant oil palm.

“Despite the population of the Penan being only about 60,000, we never neglect their needs. We have trained several Penan officers, and placed them in the community to create better communication and understanding,” he said.

“We are committed to transforming agriculture into a modern, dynamic and competitive sector, while also narrowing down the gap between rural and urban communities,” Jabu said.

Speaking on wildlife and environmental sustainability, Jabu said agriculture would not create a negative impact on wildlife and the environment as long as it was carefully and strategically planned.

“Sarawak has strict rules and regulations when it comes to issues related to the forest, wildlife and flora. If the policy affects any of these, it will not be approved or implemented.

“The foreign non-governmental organisation (NGOs) can say what they want with their hidden agenda. But, facts and figures have shown that our wildlife and forest are well protected and conserved.

“For example, there are 2,500 orang utan living in the wild in the state. They are not disturbed or affected by plantations or any agricultural activities, and that figure has remained the same in the past five or ten years ago,” he said.

Meanwhile, nearly one million ha of forest has been gazetted as national parks, wildlife sanctuaries and protected areas.

Jabu urged the NGOs not to claim that they are to protect the state’s forests or protest against the oil palm industry when they have never even seen one (oil palm plantation).