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LAND DEVELOPMENT AS A STRATEGY FOR POVERTY ALLEVIATION BY HAJI ZULKIFLI MOHD NAZIM DIRECTOR OF STRATEGIC PLANNING, RISDA Slide 2 MALAYSIAN RUBBER INDUSTRY Export Earnings in 2000 : RM13.36 billion (US$3.52 billion) Involving 265,000 smallholders in Peninsula Malaysia. Employing 21,805 estate workers. Slide 3 PLANTED AREA UNDER RUBBER Smallholdings:1,115,800 hectares (88 %). Estates: 158,100 hectares (12 %). Slide 4 PRODUCTION OF RUBBER Smallholdings:464,000 mt. (80 %) Estates:116,000 mt. (20 %) Slide 5 ISSUES AND CHALLENGES Low Level of Income from rubber. Uneconomic - Sized Holdings 2 hectares (43 %) 2 4 hectares (40 %) 4 hectares (17 %) Low Level of Technology Adoption Labour Shortages. Slide 6 OVERVIEW OF NATIONAL DEVELOPMENT POLICIES National Development Policy (NDP) National Vision Policy (NVP) Eighth Malaysia Plan (EMP) Third National Agricultural Policy (NAP3) Slide 7 NATIONAL DEVELOPMENT POLICY (NDP) Supportive policies to facilitate growth of agriculture sector. Address the problems at the farm level : -Persistence dualism between estate and smallholder sector. -Prevalence of uneconomic size holdings. -Labour Shortages. -Inadequate food production. -Lack of emphasis on human development. -Fluctuating farm income. Slide 8 NATIONAL VISION POLICY (NVP) Overriding objectives of national unity. Eradicating poverty irrespective of race. Restructuring of society. Balanced development. To become a fully developed nation by 2020. Slide 9 THIRD NATIONAL AGRICULTURAL POLICY (NAP3) To enhance food security. To increase productivity and competitiveness of the sector. To deepen linkages with other sectors. Balanced development. To conserve and utilize national resources on a sustainable basis. Slide 10 EIGHTH MALAYSIA PLAN (EMP) Expanding food production. Promote private sector participation in medium and large scale production commercial food production. Intensifying aquaculture development. Integrating food production with plantation crops. Promoting cost and labour saving technologies. Intensifying R & D in yield improvement and development of more end-products. Consolidating and rationalizing production of oil palm. Slide 11 Reorienting rubber as a strategic crop supplying timber and latex for downstream industry. Utilizing natural resources on a sustainable and environment-friendly basis. Developing activities and crops with commercial potential. Strengthening human resource development. Strengthening support services, improving the delivery mechanism, increasing the accessibility of credits and establishing insurance coverage. Slide 12 REPLANTING ACHIEVEMENT 1952 2001 1,418,807 hectares replanted. -1,012,046 hectares with rubber (71 %) - 135,334 hectares with other crops (10 %) - 271,427 hectares with oil palm (19 %) 275,268 hectares developed on group basis. Presently only 20 % replanted with rubber. Presently 50 60 % developed on group basis. Slide 13 RUBBER INDUSTRY SMALLHOLDERS DEVELOPMENT AUTHORITY (RISDA) Rubber Industry (Replanting) Board (1952 1972) Rubber Industry Smallholders Development Authority (1973 Present) RISDA Act (Amendment 2002). Expanding scopes of responsibility. Organisational Restructuring. Slide 14 MAIN DUTIES OF RISDA To administer the Rubber Industry Replanting Fund. To manage and implement schemes under R.I.R.F Ordinance 1952. To plan and implement innovations for smallholder sector. Slide 15 FUNCTIONS OF RISDA To implement agricultural innovations. To cooperate with other agencies. To implement replanting and new planting of smallholder sector. To modernize the smallholder sector. To obtain and maintain all necessary statistics relating to the development of smallholder sector. To participate in any other activities as instructed by the Minister. Slide 16 DEFINATION OF SMALLHOLDERS A smallholder is defined as the owner or lawful occupier or lawful representative of the owner or lawful occupier of any land of an area less than 40.47 hectares (100 acres) Slide 17 PROFILES OF RUBBER SMALLHOLDERS Number of Smallholders is 265,000. Total area is 850,000 hectares. Average holding size is 3.0 hectares. 65.2 % are owner operators. Slide 18 SMALLHOLDERS DEVELOPMENT STRATEGIC PLAN (2001 - 2005) Slide 19 Statement of MISSION Towards developing a progressive and prosperous smallholders community through plantation and commercial activities. Slide 20 Statement of Objectives The smallholder earns a minimum monthly household income of RM2,000 towards the end of the Eighth Malaysia Plan. Slide 21 Motto RISDA..... leading the smallholders development. Slide 22 Target Group 345,000 rubber and oil palm smallholders. -active smallholders -passive smallholders -old and unproductive smallholders Slide 23 Development Strategies To focus development towards the active smallholders. To replant with the most profitable crop. To emphasize the group development approach. To assist the individual progressive smallholders. To implement market-driven economic projects. To utilize the services of RISDAs subsidiaries to carry out large-scale projects for the benefit of hard-core poor smallholders. To emphasize the human resource development. Slide 24 Strategic Business Development Model (5 FLAGSHIP) 1.Replanting and Estatization Programme. 2.Economic Advancement Programme. 3.Commercial Economic Programme. 4.Smallholders Institutional Development Programme. 5.Household Members Development Programme. Slide 25 DEVELOPMENT PROGRAMMES AND ACTIVITIES Replanting and Estatization Programme Replanting grants to smallholders Group and Commercial Replanting. Annual target of 40,000 hectares with a minimum of 20,000 hectares from rubber to rubber. Funding from Government and Cess Fund. Slide 26 Economic Advancement Programme On-farm and Off-farm activities Rubber ++ Fish (Tilapia) rearing. Boer Goat rearing. Chicken rearing. Landscaping acitvities. Slide 27 Commercial Economic Programme Boer Goat rearing. Fish (Tilapia) rearing. Chicken rearing. Cattle rearing. Ostrich rearing Slide 28 Smallholders Institutional Development Programme Smallholders Cooperatives. Smallholders Women Group Slide 29 Household Members Development Programme Training of smallholders 2nd generation. Kolej RISDA Sdn. Bhd. Slide 30 SOURCE OF FINANCE Cess Fund. Direct Government Grant to RISDA. Allocation from Ministry of Rural Development. Special Government Schemes. Smallholders Socio-Economic Development Fund. Agricultural Bank. Slide 31 FUTURE DIRECTION Rubber Zone Exit Schemes Slide 32 PERFORMANCE INDICATORS Replant 40,000 hectares per year, 20,000 hectares rubber to rubber. Planting of LTC/RRIM 900 and 2000 series. Immaturity period for rubber is less than 4 years and oil palm less than 2 years. Implementation of LITS for matured rubber. Production target for rubber is 1,500 kg./hec/year and oil palm at 20 mt./hec/year. The on-farm and off-farm economic activities should generate a return of RM500 per month. The medium and large scale economic activities should generate a monthly allowance of RM250 per month. Membership of Smallholder Cooperatives increase to 225,000 members, earning RM75,000 profit and giving 10 % annual dividend. Training of 500 smallholder children in 2002 and increasing to 3,000 with the next 3 years. Slide 33 Thank You R I S D A Rubber Industry Smallholders Development Authority RISDA Headquarters, P. O. Box 11067, 50990 Kuala Lumpur, MALAYSIA. Tel: 603 - 42564022 Fax: 603 - 42565533 Website: http://www.risda.gov.my