INTEGRATING ENVIRONMENTAL CONSIDERATIONS INTO ECONOMIC POLICY-MAKING PROCESSES: INSTITUTIONAL ARRANGEMENTS AND MECHANISMS AT THE SECTORAL LEVEL IN AGRICULTURE IN MALAYSIA

Contents

List of abbreviations

Introduction

I. State of the environment in Malaysia

A. Malaysian resources and the environment

1. Environmental problems related to lack of development

2. Environmental problems related to industrialization

B. Overview of national development policies

1. Industrial Master Plan, 1986-1995

2. Second Outline Perspective Plan, 1991-2000

3. Vision 2020

4. Trade policy

5. Environmental policy

C. Agriculture

1. Palm oil situation

2. Rubber situation

3. Cocoa situation

II. National institutional arrangements

A. Ministry of Finance

B. Ministry of Primary Industries

C. Industry

1. Palm oil industry

2. Rubber industry

3. Cocoa industry

D. Ministry of Agriculture

E. Ministry of Land and Cooperative Development

F. Ministry of International Trade and Industry

G. Ministry of Science, Technology and the Environment

1. Environmental Quality Council

2. Department of Environment

III. Mechanisms for integrating environmental considerations into agricultural policy

A. National agricultural policy

1. Review of NAP

2. Problems faced by the agricultural sector

3. Performance of NAP

4. Objectives of the National Agricultural Policy, 1992-2010

5. Strategies of NAP, 1992-2010

6. Major industrial crops

7. Downstream development

B. Agricultural incentives

1. Promotion of Investments Act, 1986

2. Income Tax Act, 1967 (amended in 1986)

3. Specific incentives

4. Financial and loan facilities for the agricultural sector

C. Pesticides Act, 1974

1. Issuance of pesticide import permits

2. Issuance of licences for premises

3. Registration of pesticides

4. Approval of aerial spraying

5. Approval of pesticides advertisements

D. Environmental policy

1. Pollution control and prevention

2. Integrated project planning

3. Environmental inputs to resource and regional development planning

4. Environmental Quality Act, 1974

5. Environmental impact assessment

6. Environmental input to development planning

E. Mechanisms on trade and environment

1. Regional institutional arrangements

2. Declarations on the environment

3. Focal points for ASEAN environmental cooperation.

F. Implementation of the mechanisms

1. Strengths of the mechanisms

2. Weaknesses of the mechanisms

3. Opportunities

IV. Measures for integrating environmental considerations into agriculture

A. Resolving conflicts

1. Conflicts among federal and State governments

2. Conflicts among ministries or agencies

B. Coordination difficulties

C. Impact of environmental measures on Malaysian exports

1. Vulnerability to external environmental requirements

2. Pollution control in key export sectors

D. Conforming to international standards

1. Standards setting and certification process in Malaysia

2. ISO 9000 series

E. Environmental management systems: possible effects of the ISO 14001 standard on Malaysian exports

V. Multilateral trade and environment agreements

A. Uruguay Round negotiations

1. Trade-related intellectual property rights

2. Sanitary and phytosanitary measures

3. Malaysian position

B. International cooperation

C. International Cocoa Agreement

D. International Natural Rubber Agreement

E. International Commodity-Related Environmental Agreement

1. Concept of International Commodity-Related Environmental Agreements

2. Forms of the International Commodity-Related Environmental Agreement

3. Compatibility of International Commodity-Related Environmental Agreements with GATT/WTO

4. International Commodity-Related Environmental Agreement for cocoa: a case study

VI. Information and training needs

A. Public awareness programmes and educational activities

1. Public education and participation

2. Malaysia Environment Week

3. Environmentally themed novel writing competition

4. Video production

5. Environmental lectures and exhibitions

6. Educational programme via the mass media

7. Presentation of Langkawi award

8. Environmental awareness camps

9. Projek Riadah Alam Sekitar '95

10. Intervarsity environmental debate

B. Environmental information dissemination and services

1. Publications

2. Query response services

3. International referral system for sources of environmental information

4. Enviro-library services

5. Environmental briefings

6. Education and public awareness

VII. Conclusion

Reference

Annexes

I. Terms of reference

II. Focal points for ASEAN environmental cooperation

III. Matters related to the environment in the federal Constitution

Table 1. Key Malaysian exports, 1970-1995

Table 2. Malaysian gross domestic product by industry, 1970-1995

Table 3. Government agencies equipped with legal powers for administering environmental resources and other environmentally-related matters

Table 4. Environmentally-related legislation in Malaysia

Table 5. List of implementing agencies and legislation concerned with the control of chemicals and hazardous wastes

Table 6. Trends in pollution from crude palm oil mills

Table 7. Regulatory standards for palm oil mill effluent

Table 8. Status of compliance by palm oil mills, 1991

Table 9. Palm oil industry response to effluent-related fees, 1978-1982

Table 10. BOD Load reduction in the crude palm oil industry, 1978-1989

Table 11. Environmental impact assessment of cocoa production activities (estates)

Table 12. Environmental impact assessment of cocoa production activities (smallholdings)

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