KUALA LUMPUR, November 20 — The unveiling of the 2024 Budget by the Prime Minister demonstrates the government’s commitment to empowering economic growth and ensuring equitable benefits to all segments of society in line with the Malaysia MADANI concept. The Ministry of Agriculture and Commodities (KPK) welcomes the 2024 Budget announcement, which translates the government’s determination to lead Malaysia’s renewal journey and uplift the nation to shine brightly and sustainably, thus raising the living standards of the people, especially those involved in the agri-commodity sector.
The 2024 Budget encompasses policy reforms supporting the principles and values of MADANI Economics. It emphasizes restructuring the economy towards making Malaysia the leader in the Asian economic landscape and improving the quality of life for all Malaysians. In alignment with the medium to long-term policy, especially the 12th Malaysia Plan (KSP RMKe-12), which highlights socio-economic development, three primary focuses are strengthened: Enhancing Sustainability, Developing a Prosperous Society, and Achieving High-Income Nation status.
Therefore, the 2024 Budget is expected to target an increased competitive edge for the Agri-Commodity Sector, transforming it into a High Growth, High-Value (HGHV) industry through technology adoption and sustainable practices.As of June 2023, the agri-commodity sector has contributed RM38 billion or about 5 percent to the Gross Domestic Product (GDP) and RM77.4 billion or 11 percent to the nation’s exports. The 2024 Budget places a strong emphasis on the development of the Agri-Commodity Sector, with an allocation of RM732.7 million, covering operating expenses of RM428.31 million and development expenditures of RM304.39 million. Key aspects include:
- RM100 million for the Incentive Program for Oil Palm Replanting, to be offered as grants and loans to 7,000 private oil palm smallholders.
- RM70 million to enhance the sustainability of the palm oil industry and intensify the campaign to address anti-palm oil sentiments on the international stage.
- RM10 million for piloting the use of stimulant gas projects for the benefit of small rubber plantation farmers on 1,000 hectares of land.
- RM400 million for an increase in the Incentive Price of Rubber Production (IPG) from RM2.70 to the IPG activation price of RM3.00 per kilogram.
- To increase the productivity of agricultural yields and reduce dependence on foreign labor through mechanization and automation, including drones and autonomous vehicles, tax automation incentives will be expanded to cover commodity sectors under the Ministry of Agriculture and Commodities (KPK).
As a ministry responsible for the nation’s Agri-Commodity Sector, KPK is committed to ensuring long-term sustainability through policy reforms to uplift the sector and boost the economic well-being of the people, especially small-scale commodity producers, who are the backbone of the nation’s commodity production. The 2024 Budget reaffirms the Federal Government’s commitment to continue negotiations and implement the demands of the 1963 Malaysia Agreement (MA63).
The Amendment to the Inland Revenue Board of Malaysia Act 2023 was passed in the Dewan Rakyat to provide for the appointment of representatives of the Sabah and Sarawak state governments in line with the recommendations of the Inter-Government Committee (IGC) 1963. Furthermore, the Federal Government and the Sabah State Government have reached an agreement regarding the transfer of regulatory authority over the electricity supply, which will come into effect on January 3, 2024. Additionally, the Federal Government is in negotiations to hand over Bintulu Port and the operation of Rural Air Services (RAS) to the state government.
The commitment of the Federal Government to improve the well-being of Sabah and Sarawak is evident in the increased allocation for both states in the 2024 Budget compared to 2023. Development allocation for Sarawak has increased to RM5.8 billion from RM5.6 billion in 2023, while the allocation for Sabah has risen to RM6.6 billion from RM6.5 billion in 2023. The decentralization of power for development projects below the value of RM50 million to technical agencies in Sabah and Sarawak and the increase in interim special grants demonstrate the Federal Government’s commitment to strengthening infrastructure development in both states.
The 2024 Budget truly reflects the Federal Government’s determination to implement an agenda and policies that prioritize the welfare of the Malaysian people as a whole, especially safeguarding the interests and affairs of Sabah and Sarawak.
