06/07/2011 (Business Times) - Sarawak plans to double the amount of land earmarked for oil palm plantations and it will act as a key driver for the state’s economic development, says Alfred Jabu Anak Numpang, Deputy Chief Minister II and also State Minister of Modernisation of Agriculture and Minister of Rural Development. 

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

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

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 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 would produce more opportunities for the state’s upstream timber industry despite tough competition in the international market.

“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,” he said. — Bernama