Downstream Agricommodity Sector Records GDP Of RM30.1 Bln Up To 3Q 2024

KUALA LUMPUR, Feb 12 (Bernama) -- The downstream agricommodity sector recorded a gross domestic product (GDP) of RM30.1 billion in the first three quarters of last year, an increase of 6.7 per cent compared to the same period in 2023.

The Ministry of Plantation and Commodities (KPK) said the export value of the agricommodity sector for January-November 2024 hit RM168.5 billion, up 15.2 per cent from RM146.3 billion in the same period of 2023.

“The agricommodity sector contributed 12.3 per cent of the country’s total export revenue,” KPK said in a written response posted on the Dewan Rakyat portal today.

The ministry noted that the National Agricommodity Policy 2021-2030 (DAKN2030) prioritises value-added creation and market development as its core thrusts to boost the added value of agricommodity products in the downstream industry.

“The ministry’s initiatives to increase the added value of the agricommodity sector’s products include prioritising and intensifying research and development as well as commercialisation and innovation (R&D&C&I) activities to produce value-added products.

"Furthermore, to expand the agricommodity sector's supply chain, the ministry has planned various initiatives, including strengthening and expanding export markets through free trade agreements, trade missions, and the implementation of internationally recognised sustainability certification schemes across the agricommodity sector to meet the downstream industry's needs,” it said.

KPK was responding to a question by Datuk Dr Richard Rapu @ Aman anak Begri (GPS-Betong) who wanted to know the support provided by the ministry to the downstream industry to enhance the added value of commodity products and expand the supply chain as well as the effectiveness of this support in increasing the export value and national revenue.

Meanwhile, Manndzri Nasib (BN-Tenggara) inquired about efforts to standardise commodity prices, particularly rubber, among major producing countries like Malaysia, Indonesia, and Thailand.

KPK replied that Malaysia continuously strives to strengthen cooperation with major rubber-producing countries, especially Indonesia and Thailand, to ensure more stable and uniform rubber prices.

“(This is despite) prices of natural rubber, like those of other commodities, are highly dependent on the global demand and supply forces rather than being determined by the government,” the ministry said.

It said efforts towards rubber price standardisation are done through cooperation through the International Tripartite Rubber Council (ITRC), which was established in 2002, and participation in the Association of Natural Rubber Producing Countries (ANRPC).

“Through these efforts, Malaysia hopes to work together with major producing countries to tackle the challenge of price being influenced by the futures market factor dominated in large part by SICOM (the Singapore Commodity Exchange), so that smallholders can enjoy fairer rubber prices,” the ministry added.

-- BERNAMA