Integrating Environmental Considerations into the Economic Decision-Making Process
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Volume 3East and Southeast AsiaMalaysia (agriculture) Index
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II. NATIONAL INSTITUTIONAL ARRANGEMENTS

[ II | II-A | II-B | II-C | II-D | II-E | II-F | II-G ]

B. Ministry of Primary Industries

The Ministry of Primary Industries oversees the development of the primary commodity sector, covering research and development, production, processing and marketing for timber, palm oil, rubber, cocoa, pepper, pineapple, tobacco, tin, copper and other minerals. The policies and programmes of the ministry are to foster the orderly development of the commodity sectors, achieve higher value-added through downstream processing and promote the marketing of those commodities, particularly semi-processed and processed products.

The Ministry of Primary Industries was established in 1972 through the amalgamation of the Export Commodities Division of the Ministry of International Trade and Industry and several units from the Ministry of Agriculture and Land. Its role was to establish an integrated approach to the development of the primary commodities sector; it played an important role in the national economy in the 1970s by contributing some 70 per cent of total export earnings.

The Ministry of Primary Industries, which started off with two commodities under its responsibility (i.e., rubber and tin), has since expanded its role to include the development of other commodities in line with the agricultural diversification policy. With the implementation of the Industrial Master Plan (IMP), the Ministry of Primary Industries has been promoting the development of higher value-added resource based industries, i.e. processed and semi-processed products, in order to maximize export earnings and make a socio-economic contribution to the country.

The Ministry's mission is "to establish and enhance Malaysia's competitive advantage in a globalized market for selected commodities produced as well as their value-added products, and to promote specific commodities considered economically and socially strategic in our national development". The objectives of the Ministry are:

  • To maximize the contribution of the commodity sector to national income, GDP, employment opportunities and technology development;
  • To increase the efficiency, productivity and competitiveness of the commodity sector;
  • To consolidate and strengthen existing markets as well as penetrate new ones;
  • To provide the infrastructure and necessary support for the growth of the primary and secondary sectors.

The functions carried out by the divisions in the ministry include, inter alia:

  • The planning and management of the various commodity sectors;
  • The maintenance of an information data base on primary commodities;
  • The deliberation of international commodity issues and problems;
  • The administration of the financial and development performance of the ministry and its departments and agencies;
  • The management of operational and current issues related to the various commodity sectors such as rubber, oil palm, forestry and timber, cocoa, pineapple, pepper and tobacco.

Departments, statutory bodies and a corporation

In ensuring that the programmes and approaches in the commodity sector are effectively implemented, in order to attain higher efficiency and productivity, the Ministry of Primary Industries is supported by various departments and statutory bodies under its purview as well as through cooperation with other ministries, departments and relevant private sector organizations, in line with the concept of Malaysia Incorporated. There are three departments, 11 statutory bodies and a corporation directly under the Ministry of Primary Industries.

The three departments include the Federal Forestry Department, the Department of Mines and the Geological Survey Department. The statutory bodies are:

  • The Malaysian Rubber Research and Development Board (MRRDB), together with the Rubber Research Institute of Malaysia (RRIM) and the Tun Abdul Razak Research Laboratory in the United Kingdom;
  • The Malaysian Rubber Exchange and Licensing Board;
  • The Palm Oil Research Institute of Malaysia (PORIM);
  • The Palm Oil Registration and Licensing Authority (PORLA);
  • The Forest Research Institute of Malaysia;
  • The Malaysian Timber Industry Board;
  • The Malaysian Pineapple Industry Board located in Johore Bahru;
  • The National Tobacco Board located in Kota Bahru;
  • The Tin Industry Research and Development Board;
  • The Commodities Trading Commission;
  • The Malaysian Cocoa Board (MCB).

The Malaysian Rubber Development Corporation (MARDEC) Berhad, which was set up to undertake the processing and marketing of smallholder rubber is also under the purview of the ministry.

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