KL allots $1.7b to boost food security

Govt wants to turn Sarawak into Malaysia's new 'rice bowl' as prices of staples and fuel escalate
Straits Times 20 Apr 08;

Kuala Lumpur - Malaysia is allocating RM4 billion (S$1.7 billion) to increase food production, including a plan to grow rice on a massive scale in Sarawak amid fears of shortages caused by the global food crisis.

The funds allocated for the plan would also be used to build food stockpiles and increase cultivation of fruits and vegetables, Prime Minister Abdullah Badawi said yesterday.

The plan, he added, is part of efforts to make the country completely self-sufficient in rice. It now produces 65 per cent to 70 per cent of the rice its people consume and imports the rest.

A high-level panel has also been set up to deal with food security and inflation, which is expected to hit 3 per cent this year, up from 2 per cent last year.

To achieve self-sufficiency, the government plans to take up rice cultivation on a massive scale in Sarawak, making it Malaysia's new 'rice bowl'.

Much of locally-grown rice now comes from Kedah, which accounts for some 40 per cent of Malaysia's rice output.

PM Abdullah said he had discussed the plan with the state's Chief Minister Abdul Taib Mahmud, adding: 'I have approved the allocation for the project upon his request for funds.'

He did not, however, give details of the plan.

Still, the RM4 billion is but a fraction of what Malaysia needs to boost food production. The Agriculture Ministry said recently it needs RM6 billion to cultivate new rice fields and improve infrastructure to boost rice production.

Yesterday's announcement by Datuk Seri Abdullah comes on the back of other moves that the Malaysian government has made in response to the rising threat of food shortages and soaring prices.

Earlier, it had announced the setting up of a national food stockpile, and also clamped down on staples being taken out of the country.

The rising cost of living was cited as one of the reasons for the Barisan Nasional's losses in last month's general election, and the government is continually facing pressure to raise subsidies of necessities, especially fuel. It expects to spend at least RM70 billion on food and fuel subsidies this year.

Yesterday, Indonesia's National Development Planning Agency also called for a national food strategy, saying that funding was needed for the procurement of land, seedlings, fertilisers and marketing.

Bernama, Reuters, AP