KUALA LUMPUR, Dec 2 (Bernama) -- Malaysia which is a net food importernow, may be able to become net food exporter by 2010 through the agressiveimplementation of its Dynamic Agricultural Development Plan.

Malaysia may be able to record export surpluses of between RM400 millionand RM500 million in the food sector by 2010, through the plan whichinvolves the promotion of private sector investment in the agriculturalsector to turn the sector into the third engine of growth, said Ministerof Primary Industries, Datuk Seri Dr Lim Keng Yaik.

He said Malaysia's food import bill was projected to increase to RM14billion by 2005 and to RM17 billion by 2010, while exports to around RM11billion by 2005 and RM17 billion by 2010.

In 2000, Malaysia imported RM11.24 billion worth of foodstuffs andexported RM6.94 billion, resulting in a trade balance deficit of RM4.3billion, he said at the "Food and Agro Processing Session" of theMalaysia-India Business Forum here Tuesday.

On the palm oil industry, Lim said although only 46 percent of India'soilseeds processing capacity of 22 million tonnes was utilised in 2002,there were still opportunities for Malaysian and India companies tocollaborate in the vegetable oil sector in India.

Malaysian companies could jointly participate with their Indiancounterparts in the processing, manufacturing, bulking and distribution ofpalm oil and palm oil products in India, he said.

These companies may even want to jointly collaborate with Indian companiesto further modernise existing plants in the refining and value-adding ofvegetable oils, he added.

He said Malaysia's palm oil exports to India reached a record high of 2.4million tonnes in 1999, but declined to 1.7 million tonnes in 2002 whichcould be attributed to the high tariff rates imposed on palm oil productsas well as increased imports by India from other countries.

Lim hoped that the trend could be improved and that any trade or tariffbarriers that may appear to be obstacles to the continued growth of thetrade could be mutually reviewed.

On the overall trade, Lim said Malaysian Government was cognisant of thefact that the trade balance was in favour of Malaysia, and would like toimprove the situation so that there will be a greater balance of trade.

However, Malaysia with a population of 26 million cannot be compared withIndia's population of 1.1 billion, he said, adding that Malaysia'scapacity to consume goods and services is rather limited compared withIndia.

Yet, potential is there for both countries to explore and enhance mutuallybeneficial economic opportunities, he said.

Indian companies should think about using Malaysia as springboard into theAsean market which has a total population of about half a billion people,he added.

-- BERNAMA