IT IS something of an irony that in some Western countries the rambutanand durian are often labelled as Thai fruits despite their Malay names.

It is also interesting that Singapore is one of the world's biggestexporters of bananas, when most of the republic's people don't even havethe luxury of having their own garden, let alone set up a plantation ofany sort.

The only explanation is marketing savvy, or rather a lack of it on thepart of Malaysia as far as food products are concerned.

Things will change soon, in fact starting with the way the Governmentitself views the sector.

A more professional, modern and commercial approach to agriculture is tobe adopted; requiring a reform of the entire farm sector and amini-revolution to bolster its role in the economy.

It will be transformed into the third engine of economic growth by the endof the decade, alongside mainstays manufacturing and services, and theAgriculture Ministry is providing the thrust by being more business andinvestor-friendly itself, and providing every support needed by companieskeen to venture into the farm business.

In the first quarter of this year, agriculture accounted for a significant12 per cent of the nation's gross domestic product.

But this was mainly contributed by major commercial crops like palm oiland rubber, with food production's share being a mere 7.5 per cent.

The immediate challenge for the ministry is not only to boost the sector'sgrowth sharply, but also to ensure that its development is balanced andbroad-based.

For one thing, the current high dependence on imported food has seen thesector consistently posting a negative trade balance, which is really awasteful drain on foreign exchange.

The ministry has estimated that the country bought about RM12 billionworth of food from abroad last year, while selling only RM6.60 billionworth, to chalk up a huge deficit of RM6.40 billion.

The gameplan for the sector now is to cap the food import bill at aboutRM13.34 billion by 2005, and RM16.39 billion by 2010, while expandingdomestic capacity and output to a point where there will be a food tradesurplus of RM400 million at the end of the decade.

It is a huge challenge and an ambitious target, but definitely not beyondreach, according to the minister, Datuk Effendi Norwawi.

But much of the ministry's work is expected to involve convincing theprivate sector of the potential of the agriculture business _ crops,livestock, and fisheries and aquaculture.

Thus far, only a handful of companies have ventured into food production,most preferring to grow industrial commodity crops, where the money isperceived to be.

Financial institutions also seem to be giving food production a wideberth, especially following several "mishaps" in aquaculture.

The ministry is aware of this, and is looking into allaying the lenders'fears, including the possibility of introducing an insurance schemedesigned specifically for investors in agricultural projects.

The support of the financial institutions is, after all, crucial, as thesector requires some RM21 billion in private investment between 2000 and2005, according to the ministry, to see the programme throughsuccessfully.

Effendi said the Ministry is also looking into making farming attractiveto the younger generation.

Here the media can help, for example by highlighting the fact that a24-year-old livestock farmer is earning RM80,000 a month and someone elseworking on his watermelon "patch" is making RM10,000 a month.

A fisherman with state-of-the-art equipment can meanwhile net RM100,000each time he goes out to sea.

Then there will be a RM20 million advertising blitz to promote thecountry's agricultural produce under the "Malaysia Best" label.

The minister, a year-and-a-half into the job, has apparently rallied hiskey staff to the cause.

Now he has also to transmit his vision to the rest of the ministry andrelevant government agencies, as well as to the private sector and thelenders.

21 August 2001Business TImes