POLICY TO EXPAND EXPORT EARNINGS TO RM242 BILLION

KOTA KINABALU: Implementation of the newly unveiled National Commodity

Policy (NCP) is expected to contribute significantly towards the expansion of the 

nation’s export earnings to RM242.5 billion by 2020.

“This represents an annualized growth rate of 7.9 per cent,” said Plantation Industries 

and Commodities Minister Tan Sri Bernard Dompok, adding that the Policy’s thrust 

focuses on strengthening the contribution of this sector to the national economic 

development, modernization of the commodity sector, generating new sources of 

growth, enhancing competitiveness and market expansion, development of smallholders 

and entrepreneurs, and strengthening human capital development.

Speaking during the Commodity-Media Night on Friday, Dompok disclosed that NCP 

provides the strategic direction for the development of the plantation and commodities 

industry comprising palm oil, rubber, timber, cocoa, tobacco, sago and kenaf products by 

2020.

“Implementation of the strategies outlined under NCP will further strengthen the resilience 

of this sector and continue its role as one of the pillars of the economy in the longer term. 

In addition, the enablers identified under the policy is envisaged to further enhance the global 

competitiveness of the plantation and commodity sector,” he said.

The commodity industry, he added, has assumed a pivotal role in the agricultural sector by 

charting consistent growth and export earnings for the country.

This sector has transformed itself from a producer and exporter of raw materials into a vibrant 

and dynamic sector through exports of processed and semi-processed products, and this is 

reflected in the growth in export earnings, where it recorded an export growth of 24.3 per cent 

in 2010 to RM114.2 billion, compared to RM91.2 billion in 2009.

In 2011, exports of commodity based products was valued at RM141.2 billion, an increase on 

23.7 per cent, compared to 2010.

“I am of the view that the commodity sector will continue to remain as one of the main pillars of 

the economy in the years to come. This is taking into account Malaysia’s expertise in the 

development of this sector and the investments in research and development that has contributed 

to towards development of new products.

 
“In addition, the industry has shown its resilience by contributing towards development of new 

products and markets. The aggregation of the joint efforts by the government and the industry, and 

the contribution of the smallholders has placed Malaysia as one of the world leading producers of 

palm based products, rubber, furniture, cocoa and pepper products,” said Dompok.

He added the NCP provides commodity specific strategies to guide the development of the 

respective commodity.
 

“In the case of the oil palm, the focus, among others, is enhancing productivity and intensifying research 

and development of new products, while in the case of the rubber industry, it focuses on, among others, 

increasing productivity and global share of Malaysian rubber-based products, and in the case of cocoa 

and pepper, they focus on strategies to strengthen and expand these two industries.”
 

Implementation of the strategies under NCP is expected to further strengthen its contribution to Gross 

Domestic Product (GDP). 
 

It is envisaged that for period 2011-2020, the GDP of upstream sector is expected to grow at 2.7 

per cent per annum to RM29 billion in 2020.
 

This is in addition to creation of new job opportunities, multiplier effects to other sectors of the economy, 

new business opportunities and increase in income, especially to its smallholders.
 

“The development of the commodity sector is not without challenges. The pertinent one being the need for 

continuous investment in Research and Development activities in the development of new products. 

We need to create new products that has a market base of its own.
 

“In this context, NCP places emphasis on the development of new products, such as innovative furniture 

products and other downstream value added products utilizing rubber, cocoa and pepper. 

This is an addition to develop new products by the oil palm sector covering oleo-chemicals, food and 

nutraceutical products,” he said.
 

Dompok added that the commodity sector is also confronted by the issue of sustainability, and recently, 

the oil palm sector has been alleged with being responsible for deforestation and loss of the Orang Utan 

habitat.
 

“These issues not properly addressed ma y damage and tarnish the image of our industries. This is where a 

strategic direction is needed to ensure that the commodity industries remain competitive and progressive. 
 

“As outlined in the NCP, efforts in improving productivity and efficiency would overcome the issues of limited 

land resource and labour. In line with the liberalisation of international trade and the growing ‘green movement’,

the production of innovative, environmentally friendly and high value-added products will be multiplied and 

intensified focusing on new and niche markets. In summary, in the next 10 years, the government is determined 

to transform the commodity industries to be economically competitive, environmentally sustainable and 

socially rewarding, particularly to the smallholders,” he said.
 

At the event, Borneo Post senior reporter Nancy Lai received a special reward from the ministry in recognition

to her outstanding performance.

- Borneo Post, 19 February 2012