EXECUTIVE SUMMARY OF NATIONAL AGRICOMMODITY POLICY (2021-2030)

MINISTRY OF PLANTATION INDUSTRIES
AND COMMODITIES

EXECUTIVE SUMMARY

2021-2030 (DAKN2030)

Advancing Agricommodity for Sustainability and Shared Prosperity





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Dasar Agrikomoditi Negara 2021-2030 (DAKN2030)
Ringkasan Eksekutif

ISBN

Diterbitkan oleh:
Kementerian Perusahaan Perladangan Dan Komoditi (KPPK)
No. 15, Aras 6-13,
Persiaran Perdana, Presint 2,
62654 Putrajaya, MALAYSIA

Table of contents

Executive Summary
Framework DAKN2030

PALM OIL 13

Leveraging Smart Partnerships On Technological Adoption

In Palm Oil

RUBBER 19

Synergising Transformation Of The Rubber Industry

Value Chain

TIMBER 25

Modernising The Timber Industry

Towards Increased Resilience

COCOA 33

Driving The Development Of The Cocoa Industry

PEPPER 39

Fostering The Growth Of The Pepper Industry

PLANT-BASED FIBRES 43

Revitalising The Plant-Based Fibres Industry

BIOMASS 49

Scaling Up The Circular Economy Through Agricommodity Biomass

BIOFUELS 55

Promoting Biofuels As A Source Of Clean Energy

Biogas from POME 63

Executive Summary

THE DASAR AGRIKOMODITI NEGARA
2021-2030 (DAKN2030)

SETS THE POLICY DIRECTION FOR THE AGRICOMMODITY
SECTOR

The Agricommodity1 sector is a vital cog in the Malaysian
economy. Selama beberapa dekad, sektor ini telah membantu
rakyat Malaysia keluar daripada kepompong kemiskinan,
menyumbang kepada pembangunan dan pertumbuhan sosio
ekonomi negara dan mewujudkan peluang pekerjaan. Pencapaian
dan perkembangan sektor ini adalah hasil daripada hala tuju
dasar yang jelas didorong oleh kerjasama erat antara sektor awam
dengan swasta, seperti mana digariskan dalam Dasar Komoditi
Negara 2011-2020 (DKN2020) sebelum ini.

A lot has changed in this past decade. The digital revolution has taken the world by storm, and
digital natives are now in the workforce, with different aspirations and expectations from previous
generations of workers. Countries around the world have developed rapidly, tilting the balance
of power towards fast-growing, developing economies with large populations. Most recently, the
COVID-19 pandemic has cast a shadow on the economy, business survival as well as personal health
and well-being.

The Agricommodity sector is responding to these changes and challenges. The Dasar
Agrikomoditi Negara 2021-2030 (DAKN2030) sets the policy direction for the coming 10 years,
developed through extensive engagement with key stakeholders across the public and private
sector. Eight commodities and related output are covered, i.e., palm oil, rubber, timber, cocoa,
pepper, plant-based fibres (kenaf), biomass and biofuels.

1 Agricommodity refers to refers to agricultural-based commodities under the purview of the Ministry of Plantation Industries and
Commodities (MPIC)

Executive Summary 3

The Agricommodity
Sector Has Made Progress
Over The Last 10 Years

Agricommodity Gross Domestic Product (GDP) contribution grew from RM76.2 billion in 2010 to
RM85.1 billion in 20202, contributing 6.3% to Malaysia’s total GDP in 2020. Agricommodity exports
(excluding tobacco) reached RM150 billion in 2020, driven by palm oil, rubber and timber3. The sector
employs over 1.3 million people, including smallholders and plantation workers4. Almost 1 million are
Malaysians, making up 6% of the national workforce5.

Total planted area has increased by 1.1 million hectares (ha) to 7.1 million ha over 2010-2020, largely
driven by expansion of palm oil smallholdings and plantations. In parallel, sustainability practices
have improved through targeted policy action, increased certification, and better management
practices.

The Malaysian Agricommodity sector has also continued to strengthen its global standing in
a number of upstream and downstream products. Among others, Malaysian palm oil yield is the
highest among the global top five producers, Malaysia is the top global rubber glove producer and
exporter, and the sixth-largest cocoa grinder in the world.

Challenges Persist
Despite These Efforts

The yield of major commodities such as palm oil, rubber and cocoa is declining due to factors
such as poor soil health, pests and diseases, inconsistent application of good agricultural practices,
labour shortages and the uneconomic land sizes of smallholdings. These are further compounded
by adverse and unpredictable weather conditions. Despite a 20% increase in planted area from 2010
to 2020, sectoral GDP growth has been marginal at a compound average growth rate (CAGR) of 1.1%.
Export earnings are growing, albeit slowly, at a CAGR of 2.9% (2010-2020).

While this is partly attributable to fluctuating commodity prices and changes in current
exchange rates, overall challenges are primarily driven by three major issues. Firstly, the high
dependence on low-skilled foreign labour reduces pressure to improve productivity. Secondly,
more demanding sustainability requirements increase scrutiny on Agricommodity products and
require higher production costs due to compliance measures. Thirdly, there is insufficient product
diversification and value-creation, making it difficult to compete with emerging economies. These
three issues are further compounded due to the COVID-19 pandemic - a huge shock that created
even more complexities.

2 MPIC
3 ibid.
4 ibid.
5 Ministry of Human Resources (MOHR) Labour Force Survey Report 2019 - Total labour force is 15.6 million

4 National Agricommodity Policy 2021-2030 (DAKN2030)

The DAKN2030 Framework
Was Developed Considering
Global Developments And
The National Agenda

Five mega-trends are anticipated to influence Agricommodity growth over the next 10 years:
the shift of global economic power to Asia; demographic shifts due to an ageing population
and changing values and expectations of Gen Z6; digital transformation of the agriculture (and
Agricommodity) sector; rising inequality, compounded by the COVID-19 pandemic; and increasing
scrutiny over environmental issues and climate impact.

The national agenda drives the overall priorities The DAKN2030 framework was thus
defined in the DAKN: developed with three components, as shown
in the accompanying exhibit:
• The Shared Prosperity Vision 2030
(SPV2030), with three objectives - 1. Strategic Direction – Vision and Policy
development for all; addressing wealth and Thrusts for the Agricommodity sector as a
income disparities; united, prosperous and whole
dignified nation
2. Commodity-specific Aspirations –
• Mainstreaming 17 Sustainable Aspiration for each commodity, supported
Development Goals (SDGs), a choice by targets, strategies and enablers for
Malaysia has made as part of national successful implementation
development planning
3. Cross-cutting Priorities – defines the
• The 12th Malaysia Plan 2021-2025 (RMK-12) way forward for critical areas that must
which sets socio-economic development be addressed holistically for balanced
priorities for the country over the next five development of the Agricommodity sector
years

• The Third National Physical Plan
(Rancangan Fizikal Negara Ke-3, RFN3)
which is the highest-level spatial planning
document in the national development
f ramework7

6 Gen Z refers to Generation Z - defined as people born between 1996 and 2012
7 RFN4 is due to be published towards end-2021. Relevant thrusts will be considered and incorporated into DAKN2030 implementation

programmes at that time.

Executive Summary 5

THE DAKN2030 Framework

VISION
ADVANCING AGRICOMMODITY FOR
SUSTAINABILITY AND SHARED PROSPERITY

1 5 5

SUSTAINABILITY Policy Thrusts INCLUSIVENESS

Lead the way in sustainable 14 Increase inclusiveness
production and and ensure fairer wealth
Indicators
consumption, and scale up distribution
the circular economy

2 4

PRODUCTIVITY MARKET
DEVELOPMENT
Accelerate productivity
through R&D&C&I and Expand markets by
technology application leveraging the global

3 supply chain

VALUE-CREATION

Intensify value-creation
through new product

applications, product diversity
and increased complexity

6 National Agricommodity Policy 2021-2030 (DAKN2030)

Commodity-Specific Aspirations

PALM OIL RUBBER TIMBER COCOA

Leveraging Smart Synergising Modernising The Driving The

Partnerships On Transformation Of Timber Industry Development Of The

Technological The Rubber Industry Towards Increased Cocoa Industry

Adoption In Palm Oil Value Chain Resilience

PEPPER PLANT-BASED BIOMASS BIOFUELS

Fostering Growth Of FIBRES Scaling Up The Promoting Biofuels
Circular Economy
The Pepper Industry Revitalising The As A Source Of Clean
Plant-based Fibres Through
Agricommodity Energy
Industry
Biomass

Cross-cutting Priorities

SMALLHOLDER BUMIPUTERA ENTREPRENEURSHIP IMPACTFUL
WELL-BEING ADVANCEMENT AND MSME GROWTH DELIVERY
Build next-gen Expand services and Increase efficiency for
Develop “SMART” encourage innovation maximum impact
Smallholders by Bumiputera
modernising services agricommodity
and increasing use of
businesses in
technology midstream and

downstream

Executive Summary 7

Fourteen indicators have been identified for MPIC as a whole to
track outcomes, and set common goals for all stakeholders to work
towards over the next 10 years. More detailed indicators and targets
are also defined for each commodity – these are described in each
chapter.

SUSTAINABILITY
Lead the way in sustainable production and
consumption, and scale up the circular economy

Indicators Baseline 2020 Target 2025 Target 2030
1. Upstream – Area certified sustainable

Palm Oil - Percentage planted area certified sustainable

Plantations 99.8% 100% To maintain 100%
95% planted area
Independent Smallholders - licensed as per 31.6% certif ied
Regulation 5 (1), Malaysian Palm Oil Board 100%
(Licensing) Regulations 2005 40% 50%

Organised Smallholders 98.5% 100% To maintain 100%
600 of mills certified
Timber - Percentage forest certified sustainable 29%
(natural and planted forests) 750

2. Downstream – Production Facilities Certified Sustainable

Palm Oil - Certified processing units: Percentage 95% of 457 mills
Mills certified under MSPO Part 4 certif ied

Timber - Number of Chain of Custody (CoC) 381
certificate holders

3. Environment - Greenhouse Gas (GHG) emissions reduced (‘000 tonnes CO2 equivalent)**

Annual reduction in GHG emissions from 1,590 3,540 3,540
biodiesel usage

Annual reduction in GHG emissions from biogas 4,000 4,500 5,000
capture

**Estimated GHG emission reduction is based on calculation using IPCC Guideline, in line with BUR3 exercise; Only palm biodiesel impact is measured as it
represents a direct effort from Government to reduce GHG emissions
Source: MPIC; MPOB; MPOC; MPOCC; MRB; MTIB; MTC; MTCC; MCB; MPB; NKTB

8 National Agricommodity Policy 2021-2030 (DAKN2030)

PRODUCTIVITY
Accelerate productivity through R&D&C, innovation
and technology application

Indicators Baseline 2020 Target 2025 Target 2030

4. Yield (Output/ha) 3.70 4.00
1,820 1,950
Palm Oil – Oil Yield (tonnes/ha) 3.33 0.50 0.56
6.40 6.60
Rubber (kg/ha) 1,415 Stem: 10 Stem: 13
Seed: 0.5 Seed: 0.8
Cocoa (tonnes/ha) 0.14
11:1 12:1
Pepper (tonnes/ha) 6.40 4:1 4:1
4:1 4:1
Kenaf/Plant-based Fibres (tonnes/ha) Stem: 6 4:1 4:1
Seed: 0.2 1:2 1:2
1:1 1:1
5. Labour intensity (Land : Labour ratio)
10% 10%
Palm Oil (ha:worker) 10:1 13% 15%
13% 15%
Rubber (ha:worker) 4:1 13% 15%
13% 15%
Forest Plantation (ha:worker) 4:1 13% 15%

Cocoa (ha:worker) 4:1

Pepper (ha:worker) 1:2

Kenaf/Plant-based Fibres (ha:worker) 1:2

6. Transfer/licensing and commercialisation rate of R&D projects

Palm Oil 10%

Rubber 10%

Timber 10%

Cocoa 10%

Pepper 7%

Kenaf/Plant-based Fibres 10%

Source: MPIC; MPOB; MPOC; MPOCC; MRB; MTIB; MTC; MTCC; MCB; MPB; NKTB

Executive Summary 9

VALUE-CREATION
Intensify value-creation through new product
applications, product diversity and increased
complexity

Indicators Baseline 2020 Target 2025 Target 2030

7. Sectoral GDP Contribution from Agricommodity (RM) – Total 47.5 50.1
57.8 88.7
Upstream GDP (RM Billion) 46.8 billion
1 : 0.82 1 : 0.85
Downstream GDP (RM Billion) 38.3 billion 1 : 1.1 1 : 1.4
1 : 0.8
8. Utilisation rate (Ratio of Production : Domestic Utilisation) 1 : 0.75 1:1
1:1 1 : 0.22
Palm Oil8 1 : 0.8 1 : 0.8
1 : 0.26
Rubber 1:1 1 : 0.9

Timber 1 : 0.7

Cocoa 1:1

Pepper 1: 0.32

Kenaf/Plant-based Fibres 1:1

Sumber: KPPK; MPOB; MPOC; MPOCC; LGM; MTIB; MTC; MTCC; MCB; MPB; LKTN

MARKET DEVELOPMENT
Expand markets by leveraging the global
supply chain

Indicators Baseline 2020 Target 2025 Target 2030
9. Total Agricommodity Exports (RM million) 150,4919 171,000 203,000
73,253 75,000 84,000
Palm Oil 48,536 58,000 70,500
Rubber 22,023 28,000 32,800
Timber 6,229 10,000 15,000
Cocoa 120.8 144.5 216.8
Pepper 109,276 129,412 154460
10. Agricommodity Balance of Trade (RM

million)

8 Domestic Utilisation refers to the domestic utilisation of crude palm oil (CPO) and crude palm kernel oil (CPKO) for local consumption, the
refining industry and the downstream segment (after deducting CPO and CPKO exports only). The formula used to calculate the ratio is =
1: (1 - [(CPO & CPKO exports)/(CPO & CPKO production)])

9 Data baseline 2020 bagi jumlah eksport Agrikomoditi termasuk tembakau

10 National Agricommodity Policy 2021-2030 (DAKN2030)

Indicators Baseline 2020 Target 2025 Target 2030
11. Ratio of Upstream to Downstream Exports 79 : 21
Palm Oil 66 : 34 61 : 39
15 : 85 17 : 83
Rubber 15 : 85 32 : 68 30 : 70
Timber 34 : 66 10 : 90 9 : 91
Cocoa 16 : 84 50 : 50 40 : 60
Kenaf/Plant-based Fibres
N/A

Source: MPIC; MPOB; MPOC; MPOCC; MRB; MTIB; MTC; MTCC; MCB; MPB; NKTB

INCLUSIVENESS
Increase inclusiveness and ensure fairer wealth
distribution

Indicators Baseline 2020 Target 2025 Target 2030 Note
12. Smallholders Income (RM)
1,560 1,540 1,580 Average
Net Income smallholding size
(MONOCROP) (MONOCROP) (MONOCROP) 3.8 ha
Palm Gross Income Source: MPOB,
Oil 1,940 1,960 2,040 JAN 2021

Net Income (INTEGRATED) (INTEGRATED) (INTEGRATED) Average
Rubber smallholding size
3,020 3,020 3,480 1.9 ha
Gross Income Source: MRB, FEB
(MONOCROP) (MONOCROP) (MONOCROP) 2021
Net Income
Cocoa 3,560 3,620 4,050 Average
smallholding size
Gross Income (INTEGRATED) (INTEGRATED) (INTEGRATED) 1 ha
Source: MCB, FEB
Net Income 589 1,250 1,580 2021
Pepper Gross Income
(MONOCROP) (MONOCROP) (MONOCROP) Average
smallholding size
902 2,030 2,550 0.25 ha
Source: MPB,
(MONOCROP) (INTEGRATED) (INTEGRATED) MAR 2021

368 1,730 2,170

(MONOCROP) (MONOCROP) (MONOCROP)

640 2,720 3,480

(MONOCROP) (INTEGRATED) (INTEGRATED)

541 440 530
1,046
(MONOCROP) (MONOCROP)

1,520 1,830

(INTEGRATED) (INTEGRATED)

710 800

(MONOCROP) (MONOCROP)

1,790 2,100

(INTEGRATED) (INTEGRATED)

890 1,280

1,310 1,730

Executive Summary 11

Indicators Baseline 2020 Target 2025 Target 2030 Note

Kenaf/Plant-based Fibres 934 2,200 3,100 1. Net income =
gross income
for Kenaf
smallholders
as costs are
subsidised by
Government

2. Average
smallholding
size 1.53ha
(2020) and
2 ha (2025 &
2030)

Source: NKTB,
FEB 2021

13. Contribution of Agricommodity-based MSMEs to Agricommodity-based output (RM)

Rubber 2.4 billion 3.4 billion 4.4 billion

Timber 65 milion 85 million 100 million

Pepper 20 million 24 million 25 million

Fiber 9.4 million 22.5 million 45.5 million

Cocoa 5.8 million 12.5 million 25 million

14. Percentage of Bumiputera MSMEs in Midstream & Downstream segments – especially “Next Gen”
Bumiputera Entrepreneurs

Rubber 3% 6% 8%

Timber 43.8% 59.2% 71%

Pepper 20% 30% 40%

Fiber 99% 80% 60%

Cocoa 93% 90% 80%

** Sasaran: Pendapatan isi rumah melebihi garis kemiskinan (RM2,208) akan dicapai melalui tanaman integrasi dan pengukuhan koperasi
Sumber: KPPK; MPOB; MPOC; MPOCC; LGM; MTIB; MTC; MTCC; MCB; MPB; LKTN



PALM OIL

Leveraging Smart
Partnerships On
Technological
Adoption In Palm Oil
Palm oil is the leading Agricommodity for Malaysia Malaysia in terms of planted area,

output and export earnings. Malaysia is the world’s second-largest palm oil producer and
exporter. Sustainability efforts have also been actively pursued, as seen in the introduction
of the Malaysian Sustainable Palm Oil (MSPO) certification scheme in 2015, and the Government’s
commitment to four policies towards sustainable oil palm cultivation endorsed by the Cabinet1.
Significant challenges still affect the sector despite its strong performance to date. The
key issues in upstream include declining productivity, land and labour scarcity, and independent
smallholder welfare. The downstream segment is affected by non-tariff barriers and negative
perceptions in the global market as well as insufficient investment in developing higher value-added
products.
Twenty-one indicators and targets have been set to measure outcomes for palm oil industry
development over the next 10 years, supported by the implementation of 17 strategies.

1

14 National Agricommodity Policy 2021-2030 (DAKN2030)

Way Forward 2021-2030

21 17

Indicators Strategies
& Targets

1 2 4 5

SUSTAINABILITY PRODUCTIVITY MARKET DEVELOPMENT INCLUSIVENESS
Capture the leading Expand productivity Industry-led strategic Lead the way in
position in sustainability improvement efforts, partnerships smallholder well-being
S1. Strengthen S15. Refine models to
especially in the S13. Improve market access improve livelihoods of
sustainability measures upstream and through trade independent
and mechanisms, agreements and smallholders (ISH)
including midstream segments strengthen existing S16. Optimise government
implementation and S5. Invest in market-driven markets, especially support with targeted
standards of MSPO Southeast Asia, China, assistance, e.g., data
S2. Enhance and R&D&C to increase the India and Middle East governance and
strengthen traceability supply of high-yielding income-generation
of certified sustainable planting materials S14. Collaborate with programmes
palm oil S6. Accelerate the industry to strengthen S17. Empower Bumiputera
S3. Encourage adoption of agricultural communication on for increased
industry-driven best practices sustainability practices participation across
responsible practices S7. Facilitate the adoption upstream, downstream
across the value chain of automation, and midstream
on workers’ rights, mechanisation and
safety standards, IR4.0 technologies for
compliance higher output and
S4. Increase environmental quality
conservation and S8. Promote new
management efforts technologies to MSMEs,
association or agencies

3

VALUE-CREATION
Accelerate the shift to higher-value activities, and capture circular economy opportunities
S9. Expand market-driven product development focused on specialised products such as performance

oleochemicals and biofuels, functional foods and ingredients
S10. Intensify R&D&C efforts to produce a higher-valued and more diversified range of palm and kernel oils
S11. Ensure compliance to international and importing countries’ food quality and safety standards
S12. Capture opportunities for a zero-waste circular economy

Executive Summary 15

Flagship Programme 1:

MSPO Trace

Background The MSPO Trace - Traceability Module requires MSPO-certified
entities to register their suppliers and buyers, as well as to declare all
Objectives transactions involving MSPO-certified materials within the system. This
Target allows the system to depict the movement and availability of MSPO-
Segments certified materials within the supply chain.
Lead Agency
and Relevant With advancements in technology, the MSPO Trace Traceability Module
Stakeholders will harness new technologies such as blockchain and big data to
Expected improve traceability. Information of all entities within the blockchain is
Outcomes tamper-resistant while also safeguarding their privacy by only allowing
required information to be accessed by different parties.

Improve traceability within MSPO Trace by integrating blockchain
technology

Use available data provided in MSPO Trace and blockchain to
produce data analytics to determine trends and patterns of the
supply chain

MSPO-certified entities
Traders and buyers

Lead Agency: Malaysian Palm Oil Certification Council (MPOCC)
Relevant Stakeholders: MSPO-certified entities

Improve traceability by applying blockchain, which will utilise a
secured hyper ledger and smart contracts

Better understanding of the certification cycle and movement of
certified palm oil and palm-based products

16 National Agricommodity Policy 2021-2030 (DAKN2030)

Flagship Programme 2:

Mechanisation And Automation Research

Consortium Of Oil Palm (MARCOP)

Background Oil palm mechanisation provides advantages such as increasing
workers’ productivity, hastening fieldwork and improving the
sustainability of oil palm plantation operations. However, current
mechanisation uptake is still very low at a reported rate of 2% for
harvesting and 16.5% for other mechanisation activities.

Several factors contribute to the low uptake rate of mechanisation
technologies. Existing technologies, in particular for harvesting, are
not able to provide the desired results compared to labour-intensive
operations. Various domestically developed and imported technologies
have been tested and deemed unsuitable for oil palm plantations. These
perceived “failures” tend to dampen industry’s willingness to mechanise.
A different approach is needed to identify and pilot automation and
mechanisation technologies that are more relevant to the Malaysian
context. A database of market available technologies available backed
up with verification and Standard Operating Procedures (SOPs) will help
industry to select appropriate machineries for their plantations, reducing
the risk of failure when heavily investing in mechanisation.

Objectives Expedite the adoption of automation and mechanisation among
plantations and smallholders

Provide information on available and verified mechanisation
technologies for the reference of industry and smallholders

Provide SOPs for each identified oil palm mechanisation technology
Facilitate the development of new mechanisation technologies

Target Oil palm plantations and smallholders
Segments
Lead Agency Lead Agency: MPOB
and Relevant Relevant Stakeholders: Research universities and institutes,
Stakeholders
engineering companies, industry associations and smallholders’
associations/cooperatives

Expected The Oil Palm Mechanisation Technologies Database is made
Outcomes available online

Standard Operating Procedures (SOPs) disseminated with industry
players and smallholders

Increased uptake of mechanisationtechnologies by plantations and
smallholders

Executive Summary 17



RUBBER

Synergising
Transformation Of
The Rubber Industry
Value Chain

Rubber is one of the main pillars of the Agricommodity sector. In the last decade, the sector
has seen increased value-addition with its thriving downstream segment and strong growth
in the exports of downstream rubber products. Globally, Malaysia is the leading producer and
exporter of rubber gloves.
Three major issues currently affect the industry. In the upstream segment, rubber faces declining
domestic supply of raw materials and an overall reduction in smallholder productivity amid unstable
rubber prices. The midstream segment is stagnating due to challenges in sourcing good quality
rubber in sufficient quantities for processing, while the downstream segment is skewed towards the
production of latex-based products over dry rubber products, with Malaysia now a net-importer of
natural rubber.
Eighteen indicators and targets were identified to measure outcomes for rubber industry
development over the next 10 years. Eleven strategies were prioritised for implementation.

20 National Agricommodity Policy 2021-2030 (DAKN2030)

Way Forward 2021-2030

18 11

Indicators Strategies
& Targets

1 2 4 5

SUSTAINABILITY PRODUCTIVITY MARKET DEVELOPMENT INCLUSIVENESS
Transform upstream Expand productivity Grow markets through Enhance Bumiputera
through increasing raw improvement efforts industry-led strategic
participation and
material supply across upstream, partnerships safeguard smallholders’
and quality assurance midstream and S8. Promote the transition
S1. Revive smallholders’ downstream wellbeing
of high-potential S10. Increase support for
sector through S4. Strengthen advisory companies into
strengthened and extension services higher-value industries local Bumiputera
cooperatives, to smallholdings and higher value enterprises
institutional alignment branding and S11. Increase adoption of
and cross-functional S5. Introduce incentives distribution digital tools and
reform initiatives and encourage S9. Intensify promotional platforms for
S2. Identify and earmark progress towards IR4.0 efforts to increase establishment of a
suitable areas for for modernisation of global market share for comprehensive
large-scale rubber the midstream specialty and dry database
cultivation segment rubber products,
S3. Implement a quality creating Malaysia’s
assurance scheme to presence in higher
regulate imports of value product
rubber products, and to
support trade and
domestic consumption
of rubber and
rubber-related
products

3

VALUE-CREATION
Strengthen R&D&C for greater commercialisation of products
S6. Strengthen R&D&C capabilities and coordination between industry, academia and research
institutions with a specific focus on developing specialised and high value-added products
S7. Extend financial support for commercialisation of products with high potential

Executive Summary 21

Flagship Programme 3:

East Coast Latex Corridor

Background The rubber downstream segment is dominated by latex-based products,
namely rubber gloves, condoms and catheters. However, local latex
Objectives production only meets less than 7% of industry demand. In line with
Target efforts to increase local production of latex and increase smallholders’
Segment incomes, the East Coast Latex Corridor in Peninsular Malaysia will
Lead Agency be established, spanning the states of Terengganu, Kelantan and
and Relevant Pahang. The Government has allocated RM16 million in 2021 for the
Stakeholders implementation of the Insentif Pengeluaran Lateks (IPL) programme
Expected inclusive of RM6 million for the establishment of 15 Rubber Collection
Outcomes Centres (Pusat Mengumpul Getah, PMG) equipped with facilities to
determine the dry rubber content (DRC) in latex and raw rubber. From
the 227,000 ha of existing rubber planted area and 140,000 smallholders
in the three states, an earmarking activity will be carried out to identify
potential areas and farmers to participate in the Latex Corridor.

Raise incomes of rubber smallholders
Increase the national latex production for a continuous supply for

domestic consumption, reducing reliance on imported latex

Rubber smallholders

Lead Agency: MRB
Relevant Stakeholders: rubber smallholders, rubber entrepreneurs

Establish 15 clusters consisting of corporations and rubber
entrepreneurs

Produce 5,000-10,000 tonnes of latex in its first year of operation

Source: Malaysian Rubber Board (MRB)

22 National Agricommodity Policy 2021-2030 (DAKN2030)

Flagship Programme 4:

Kedah Rubber City

Background Kedah Rubber City (KRC) is the first dedicated Rubber Industrial
Park in Kedah. Covering an area of 1,244 acres, it is envisioned to
Objectives accelerate the development of Malaysia’s rubber industry. The project
Target is a synergistic effort supported by Indonesia, Malaysia and Thailand
Segment to stimulate socioeconomic development in the border region. It will
be developed into a “Rubber Corridor” that will link the region’s major
rubber producers under the Indonesia-Malaysia-Thailand Growth
Triangle (IMT-GT) sub-regional cooperation initiative. Key players in the
rubber industry, in particular high-value product manufacturers, will
be encouraged to invest in KRC based on the conducive eco-system to
be developed that can produce raw material supply necessary for the
sustainable development of the manufacturing sector.

KRC is surrounded by highly reputed and globally recognised
government-linked R&D organisations that will serve as effective
linkages. This provides a platform for dialogue between industry players
within KRC with related local and global agencies and institutions,
bringing benefits for manufacturing and research activities, as well as
commercialisation of projects. Academic institutions within the region
can act as knowledge centres that encourage intellectual interaction,
leading to the creation of an innovative community within the KRC and
Northern region of Malaysia.

Spur economic growth and increase inclusivity through the rubber
industry

Increase private sector investments in rubber products
manufacturing

Provide job opportunities for the local community
Leverage on the abundance of raw material supply in the region to

create value-added downstream activities

Domestic and international investors
Manufacturers of advanced latex products, tyre and tyre related

products, automotive rubber products, engineering rubber products,
specialty rubber materials and biotechnology rubber-based products

Executive Summary 23

Lead Agency Lead Agency: Northern Corridor Implementation Authority (NCIA)
and Relevant Relevant Stakeholders: rubber industry players
Stakeholders
Expected Modernisation of the rubber product manufacturing sectors
Outcomes Higher contribution to national GDP by the rubber industry
Contribute to the national goal of achieving high-income status

Source: Malaysian Rubber Board (MRB)



TIMBER

Modernising The
Timber Industry
Towards Increased
Resilience

The timber industry has recorded steady growth over the last decade, with various wood
products in both, the upstream and downstream segment ranked within the global Top 10
or Top 20 in their respective categories. Value-addition has increased over the last 10 years as
exports shifted from primary processed timber to value-added timber products. In the face of rising
global demand for improved sustainability practices, the Malaysian timber industry has seen an
increase in certification. Forest plantations have also been set up to meet downstream demand in a
more sustainable way.
The timber industry faces various challenges across upstream and downstream. Malaysia’s
commitment to preserve national forest cover means that alternative sources of raw materials
need to be developed. The downstream segment is affected by evolving international sustainability
requirements, heavy reliance on foreign workers, low productivity, limited adoption of automation
and mechanisation, and insufficient Bumiputera participation.
Sixteen indicators and targets were identified to drive the development of the timber sector over
the next 10 years, with 14 strategies for implementation.

26 National Agricommodity Policy 2021-2030 (DAKN2030)

Way Forward 2021-2030

16 14

Indicators Strategies
& Targets

1 5

SUSTAINABILITY INCLUSIVENESS
Promoting Increase participation of

sustainability across the Bumiputera in the
timber value chain Timber industry

S1. Boost the S13. Empower Bumiputera
implementation of participation in the
certification of timber timber industry
and timber products through
smart-partnership
S2. Strengthen the timber activities
raw material supply
chain S14. Raise workers’ welfare

S3. Continue the Forest 2 4
Plantation
Development PRODUCTIVITY MARKET DEVELOPMENT
Programme Expand productivity Enhance certification
improvement efforts practices and
S4. Encourage alternative across upstream and industry-led strategic
sustainable sources of downstream segments partnerships
raw material, using S5. Improve efficiency of
circular economy S9. Encourage and
principle e.g., bamboo, the timber industry by promote greater
oil palm trunk (OPT), using modern uptake of certification
kenaf and biomass technology (GMP, 5S, (legal and sustainable)
lean management, for the timber industry
R&D&C, smart
manufacturing) S10. Foster foreign-local
S6. Promote take up of collaboration in
IR4.0, automation and commercialisation for
mechanisation among international markets
industry players
S11. Promote greater
consumption of
sustainable local
timber products

S12. Develop Malaysian
firms to become
globally competitive
timber and
timber-based
companies

3

VALUE-CREATION
Accelerate the shift to higher value-added activities
S7. Elevate the industry’s initiatives towards ODM, OBM, and production of ‘Made in Malaysia’ timber products
S8. Expand design capability and innovation for the Malaysian timber industry through transfer of technology
and branding, including in collaboration with universities and TVET institutions

Executive Summary 27

Flagship Programme 5:

Forest Plantation Development

Programme (FPDP) 2.0

Background In an effort to reduce pressure on natural forests as a source of raw
materials and to ensure its availability for the timber industry, the
Government is promoting the development of large-scale commercial
forest plantations. In March 2005, the Ministry of Plantation Industries
and Commodities (MPIC) was given the important task by the Cabinet
of establishing large-scale commercial forest plantations. Therefore,
the Government had launched the Forest Plantation Development
Programme (FPDP) in 2007. The programme’s target was to develop
130,000 ha of commercial forest plantation by 2020. This programme will
prioritise selected fast-growing species that can be felled within 15 years.
The take-up rate of the FPDP is 97% (126,458 ha) as at December 2020.

Given its importance, the Government has allocated RM500 million
through Budget 2021 to continue the development of forest plantations
in a second phase known as FPDP 2.0. Under FPDP 2.0, the allowable
area is 4 ha and above, depending on the planted species. It can be
implemented through existing means or community farming, involving
the B40 group in the plantation sector through companies, cooperatives
or related agencies. Some improvements will be made in FPDP 2.0,
including:

shortening the maturity of the loan to benefit more people;
prioritising degraded forest areas;
implementing Shariah-compliant loans; and
listing of new species depending on the suitability and needs of the

industry, and ensuring that these species give good returns to forest
plantation entrepreneurs.

Sabah and Sarawak also have their tree banking (forest plantation)
programmes. Sarawak has a total of 456,855 ha under different species
while Sabah has about 350,000 ha.

Objectives Ensure continuous availability of timber raw materials for the
country’s timber industry

Reduce pressure on production of timber from natural forests
Provide opportunities for private investors to venture into the forest

plantation sector
Create job opportunities or entrepreneurship opportunities for the

B40 group

28 National Agricommodity Policy 2021-2030 (DAKN2030)

Target Timber plantation owners
Segment
Lead Agency Lead Agency: MTIB, FPDSB
and Relevant Relevant Stakeholders: timber plantation owners (B40 and other
Stakeholders
groups)
Expected
Outcomes Estimated 50,000 ha of forest plantations developed in the first 5
years (2021-2025)

Estimated raw material supply turnover of 10 million m3 for a felling
cycle of 4 to 15 years, depending on the planted species

Executive Summary 29

Flagship Programme 6:

Furniture Original Design

And Branding

Background Malaysia’s achievement in the OEM sector of the timber industry is
evidenced by its world ranking in the wooden furniture (8th) category
in 2019. In this climate of intense global competition, companies must
differentiate themselves through new concepts and outstanding
products developed based on a deep understanding of consumer
needs. MTIB, MTC and the Malaysian Furniture Council (MFC) furniture
design programmes to transform the furniture industry, including:

TANGGAM Design Programme: TANGGAM® Design Centre (TDC) is
equipped with design facilities and it is a design hub for designers,
students, related industries or any other end-users.

MOBILI - Furniture Design Competition (MOBILI): an annual
competition where winners are selected to participate in major
international fairs to gain exposure and build networks with
exhibitors, furniture manufacturers and entrepreneurs.

Professional Designers Programme (PDP): combines local creative
talents with local furniture manufacturing capabilities to produce
new designs and products that are ready for local and international
markets. This collaboration is further uplifted with assistance from a
select group of international designers.

Design Incubator Programme (DIP): helps the Malaysian timber and
furniture industry grow and upgrade along the design and brand
value chain by assisting manufacturers to craft designs that respond
to consumer expectations. This will accelerate the shift of buyer’s
perception that Malaysian timber and furniture products have high-
value manufacturing, design and functionality.

Objective Transform the industry from manufacturing oriented OEM into
design-oriented ODM and OBM

Target Timber product and furniture manufacturers, product designers,
Segment interior designers, architects, universities and TVET institutions
Lead Agency
and Relevant Lead Agencies: MTIB, MTC, MFC
Stakeholders Relevant Stakeholders: timber product and furniture manufacturers,

aspiring designers, product designers, interior designers, architects,
universities and TVET institutions

30 National Agricommodity Policy 2021-2030 (DAKN2030)

Expected Transform the design capability of Malaysia’s furniture industry
Outcomes Nurture a new group of young and promising Malaysian furniture

designers
Broaden the range of furniture exports via high quality and value-

added products
Develop innovative designs for furniture and other timber products

Executive Summary 31

32 National Agricommodity Policy 2021-2030 (DAKN2030)

COCOA

Driving The
Development Of The
Cocoa Industry
The cocoa cultivated area in Malaysia is concentrated in Sabah and Sarawak, and is

dominated by smallholders. While the upstream segment is declining, the downstream
segment is thriving. Malaysia ranks among the top 10 cocoa grinders in the world, with exports
of cocoa products increasing progressively over the last decade.
The Malaysian cocoa industry faces a number of challenges especially in the upstream
segment. In general, estates have exited cocoa planting, shifting to more economically viable crops.
Smallholders too are shifting to other crops, or retiring. In the downstream segment, key issues are
the high dependence on imported cocoa beans as domestic production cannot meet local grinders’
needs, and increased competition from source countries looking to develop their own downstream
activities.
Fifteen indicators and targets were identified to drive cocoa industry development over 2021-2030.
Thirteen strategies were prioritised for implementation.

34 National Agricommodity Policy 2021-2030 (DAKN2030)

Way Forward 2021-2030

15 13

Indicators Strategies
& Targets

1 2 3 5

SUSTAINABILITY PRODUCTIVITY VALUE-CREATION INCLUSIVENESS
Secure consistent Increase smallholder Focus on niche cocoa Increase smallholder
supply of certified, beans and expand the
traceable cocoa beans productivity and incomes while
S1. Establish strategic application of R&D and downstream developing
partnerships to expand segment
domestic production of digital technologies entrepreneurs
certified and traceable S4. Expand extension S8. Focus on niche, high S13. Advance
cocoa beans through quality specialty beans
cluster farming, programmes to coach towards production of income-generation
cooperatives, crop and build capacity of organic and fine or opportunities for
integration and smallholders flavour cocoa (FFC) smallholders and
plantation S5. Strengthen plantation entrepreneurs/ MSMEs,
development management practices S9. Develop downstream e.g., chocolate
S2. Set up a traceability by upskilling and industries through entrepreneur,
system to track quality certifying manpower strategic partnerships integrated cocoa and
and origins of cocoa S6. Set the standard for to widen the range of agro-tourism clusters,
beans quality, productivity cocoa-based products, nurseries by adopting
S3. Secure consistent and sustainability including non-food the “Farm to Table”
imports of certified through R&D and products model
sustainable cocoa technical standards
beans to meet S7. Enhance technology 4
downstream industry development and
needs adoption, e.g., IoT, IR MARKET DEVELOPMENT
4.0, data analytics, Position Malaysia as a
digital marketing and regional hub and
e-commerce increase exports
to developing markets

S10. Position Malaysia as a

3regional cocoa hub by

attracting global cocoa
and chocolate players
to make Malaysia their
regional hub
S11. Brand and promote
Malaysian cocoa and
cocoa products locally
and internationally
S12. Develop new markets
for Malaysian cocoa
products by enhancing
trade with other
countries

Executive Summary 35

Flagship Programme 7:

Cocoa Trading Hub and Cocoa Nexus@Iskandar

Background The development of the cocoa industry in Malaysia is driven by growth
Objectives in value-added activities throughout the production chain. Malaysia will
be positioned as a cocoa trading hub to stimulate the development of
the country's cocoa downstream segment, ensure continuous supply of
cocoa beans and maintain market share. Therefore, the establishment
of the Cocoa Trading Hub will provide an effective and efficient trading
ecosystem to attract investment opportunities, generate new economic
growth and increase national income from the cocoa industry.

When established, the Cocoa Trading Hub will support the development
of the Cocoa Nexus at Iskandar Malaysia , a new development project to
create an environmentally friendly, efficient and effective downstream
cocoa industry cluster. This development is a public-private partnership
that will include infrastructure investment and shared services such as
warehouses, incubators, laboratories, and a wholesale centre.

The competitive business environment in the Iskandar region has
led to the existence of three prominent local and multinational cocoa
processing companies with a current capacity of 300,000 tonnes of
dry cocoa beans (83% of total grinding capacity in the country). There
are also 12 chocolate manufacturing companies and 23 chocolate
entrepreneurs in the region, with a total revenue of RM67.8 million. The
ecosystem was further boosted with the recent opening of the largest
chocolate production facility in Asia with total investment estimated at
RM816 million.

Create a trading ecosystem that will attract new domestic and
multinational investments

Boost downstream cocoa industry development through investment
facilities and opportunities to attract investors to venture into cocoa
processing and manufacturing of cocoa products

Provide remedial measures to current issues related to tariff and
non-tariff barriers that impact exports of cocoa products, expansion
of market destinations and cocoa market shares

36 National Agricommodity Policy 2021-2030 (DAKN2030)

Target Domestic and multinational manufacturers involved in cocoa
Segment processing and manufacturing of cocoa products
Lead Agency
and Relevant Cocoa traders
Stakeholders
Expected Lead Agency: MCB
Outcomes Relevant Stakeholders: Iskandar Regional Development Authority

(IRDA); Johor State Government; industry associations, domestic and
multinational investors

Increased export earnings: RM10 billion in 2025
More employment opportunities for high-skilled Malaysians
Expansion of Malaysia’s market share in new and existing markets

(2025 targets):
• Asia & Oceania: 51%
• Middle East: 48%
• Africa: 33%

Executive Summary 37

38 National Agricommodity Policy 2021-2030 (DAKN2030)

PEPPER

Fostering The
Growth Of The
Pepper Industry
Globally, Malaysia ranks as the 5th-largest pepper producer, and its potential in global

pepper markets continues to rise despite formidable regional market competition. Pepper
cultivation is concentrated mainly in Sarawak where 98% of total production takes place.
The advancement of Malaysia’s pepper industry is hindered by issues across the value chain. In
the upstream segment, challenges include ageing pepper farmers and low labour recruitment, high
production costs, and low impact of R&D and innovation. Meanwhile, in the downstream segment,
key issues are an increasingly competitive global pepper market, price fluctuations, and insufficient
investments to develop higher-value downstream activities.
Fifteen indicators and targets were identified to drive outcomes for pepper industry development,
with 13 strategies prioritised.

40 National Agricommodity Policy 2021-2030 (DAKN2030)

Way Forward 2021-2030

15 13

Indicators Strategies
& Targets

15

SUSTAINABILITY 2 4 INCLUSIVENESS
Ensure sustainability of Forging partnerships
PRODUCTIVITY MARKET DEVELOPMENT
the pepper industry Enhance productivity Expand into specialised between pepper
through high yields through technology smallholders and
products and new industry players
and quality adoption market segment S12. Implement dedicated
S1. Focus on quality S4. Encourage technology S10. Enhance trade programmes to
facilitation to penetrate develop Pepper
pepper production – adoption to improve into new market and Agripreneurs
quality compliance vine productivity expanding existing S13. Facilitate partnerships
with Maximum Residue S5. Strengthen advisory markets between pepper
Level (MRL) aligned and extension services S11. Continuous marketing producers and industry
with Codex to smallholdings for and promotion of high players
(International food adoption of Good valued pepper and • Increase yield per
standard) to comply Agricultural Practices pepper-based
with requirements of (GAP) products, including vine/hectare
buyer and codex S6. Establish collaborations exploring synergies - Introduce good
standard of respective with existing training with other spices
country institutes by engaging planting and
S2. Foster better farming with social enterprises post-harvest
practices with more to provide training and practices
extension support extension services to - Integrated
services to smallholders smallholders extension
S3. Create a more programmes,
conducive business increase coverage to
and farming all producing areas
environment to attract and effective
the private sector and transfer of
youth to engage in technology to
pepper cultivation – pepper
especially with modern smallholders
farming practices and - Establish and
emphasis on develop Pepper
sustainability Agripreneurs
Programme to
3 encourage greater
participation of
MSMEs and small
industry players into
the pepper-based
downstream
activities

VALUE-CREATION
Accelerate the shift to downstream activities
S7. Advance small business growth in the downstream segment
S8. Intensify R&D to explore potential use of pepper and pepper extracts beyond the food sector
S9. Increase local consumption of pepper
• Promoting the usage and benefits of the pepper and pepper-based products among
entrepreneurs and end users

Executive Summary 41

Flagship Programme 8:

Pepper Development And Extension Centre

Background The Pepper Development and Extension Centre will serve as a
comprehensive research and reference centre on pepper in Malaysia. It
Objectives will be a catalyst for R&D&C&I activities aimed at maximising production,
Target increasing yield, and ensuring the sustainability of the pepper industry
Segments in Malaysia, focusing on four areas:
Lead Agency
and Relevant production of high yield, high-quality planting materials that are
Stakeholders resistant to diseases and pests
Expected
Outcomes environmentally-friendly pest control methods
modernising pepper cultivation and processing practices
development of value-added and diversified pepper and pepper-

based products

In addition, the centre will serve as a pepper development centre
through ongoing awareness and training activities for industry players
to further enhance their technical and non-technical skills.

Expand research findings, as well as the development and
innovation of pepper;

Become a comprehensive research and reference centre on pepper;
Disseminate knowledge, skills, expertise and technology transfer to

stakeholders; and
Drive human capital development towards an integrated pepper

industry.

smallholders
Pepper industry players

Lead Agency: MPIC-MPB
Relevant Stakeholders: Federal Government Ministries, State

Governments, pepper smallholders, entrepreneurs and pepper
exporters.

Increase pepper productivity through innovative agricultural
practices as well as R&D&C&I.

Improve living standards of pepper smallholders by generating
higher returns through higher yield varieties, better farming
practices and value-added pepper-based products.

Strengthen and diversify the use of pepper downstream products for
increased value creation.

42 National Agricommodity Policy 2021-2030 (DAKN2030)

PLANT-BASED
FIBRES

Revitalising The
Plant-Based Fibres
Industry

Kenaf was first introduced in Malaysia in 2010 as an alternative to tobacco by the National
Kenaf and Tobacco Board (NKTB). Kenaf and other plant-based fibres could become a reliable
source of bio-composites, pulp and paper, and even insulation materials for the automotive
and construction industries. During the DKN2020 policy period, significant efforts and substantial
investments were driven by the Government to promote and develop the kenaf industry. These
developments have laid the foundation for the expansion into other plant-based fibres during the
upcoming policy period (2021-2030). Maximising utilisation of plant-based fibres from a number
of sources will contribute towards waste reduction and increase sustainability while fostering value
creation as part of the circular economy.

In the upstream segment, kenaf faces low productivity due to the limited availability of seed
varieties in Malaysia, scarcity of suitable agricultural land and the challenge to attain a premium
price. In the midstream segment, key issues are the lack of processing equipment and limited private
sector investment. In the downstream segment, there is a lack of R&D, innovation, and private sector
investments as well low awareness of the potential of plant-based fibres hinder product development
and market expansion.

Seventeen indicators and targets were identified to drive plant-based fibres industry development
over the next 10 years. Fifteen strategies were prioritised for implementation.

44 National Agricommodity Policy 2021-2030 (DAKN2030)

Way Forward 2021-2030

17 15

Indicators Strategies
& Targets

1 2 4 5

SUSTAINABILITY PRODUCTIVITY MARKET DEVELOPMENT INCLUSIVENESS
Promoting Expand productivity Expand markets by Increasing Bumiputera
improvements across all
sustainability across the leveraging the global participation in the
kenaf value chain segments supply chain kenaf industry
S5. Develop and
S1. Complete value chain S12. Expand industry-led S14. Enhance entrepreneur
development by implement suitable strategic partnerships development via an
creating good planting methods and to increase market infant industry
coordination from Good Agricultural access with buyers as programme for
upstream to Practices (GAP) to well as expanding into Bumiputera and
downstream achieve high level of new markets MSMEs
productivity in kenaf
S2. Attract private sector output S13. Target foreign-local S15. Develop Smallholder
investment by S6. Implement collaboration Cooperatives to achieve
providing incentive and outcome-based economies of scale
support to industry monitoring through mechanisation
players. S7. Increase operational and other initiatives
efficiency including the
S3. Implement use of machinery for
certification of kenaf planting, harvesting
products and processing kenaf
S8. Establish industry
S4. Zone specific areas for anchors
kenaf production (land
consolidation for
cluster farm)

3

VALUE-CREATION
Accelerating the shift to higher value-added activities
S9. Increase R&D and adoption of technology (IoT, IR 4.0, data analytics) in planting
management, downstream processing, and marketing (digital marketing and
e-commerce)
S10. Form strategic partnerships to create new kenaf/fibre based products especially
high value-added products.
S11. Conduct market research and a techno-economic study to find the best commercial
uses for kenaf-based fibres.

Executive Summary 45

Flagship Programme 9:

Kenaf Valley

Background The Kenaf Valley development will be concentrated at the nodes of the
industry: Pasir Puteh (Kelantan), Setiu (Terengganu), Rompin (Pahang)
Objectives and Chuping (Perlis). The aim of the Kenaf Valley is to develop and
Target strengthen the kenaf value chain in the midstream and downstream
Segments segments. Four semi processing facilities and basic infrastructure have
Lead Agency been developed in the last three years to attract industry players and
and Relevant new investors. This approach is to lower investment risks at the infancy
Stakeholders stages of development and provide support for the new venture.
Competent champion companies will be promoted as Special Purpose
Vehicles (SPV) with the goal of spearheading growth in the industry in
the initial phase.

In the future, the plan is to expand the development model to other
designated areas - on the east coast, in the northern region, and in
Sabah and Sarawak.

Increase economic activities and development of the local economy
Lead in commercializing kenaf products to promote industry growth

Kenaf smallholder’s cooperative
Industrial sectors (kenaf building materials, kenaf non-woven, kenaf

pulp and paper, biodegradable, kenaf particleboard, absorbent & bio-
composite industry)

Lead Agency: NKTB
Relevant Stakeholders: State Governments, private sector

46 National Agricommodity Policy 2021-2030 (DAKN2030)

Expected Transform the kenaf industry to be industry-driven and self-
Outcomes sustaining with commercial-scale farms;

Develop the export market for kenaf products to increase its
economic contribution to Malaysia's economy; and

Transform kenaf into one of the nation's main Agricommodity crops