KUALA LUMPUR, Nov 3 — The Ministry of Primary Industries (MPI), which received a lower allocation in the 2019 Budget, says it will continue with efforts to boost the agri-commodity sector’s contribution to economic growth.

Minister Teresa Kok said MPI was allocated RM507 million, comprising RM125.6 million for operating expenditure and RM381.4 million for development expenditure, down 50.7 per cent from the amount for 2018.

She said the government, in the 2019 Budget Strategy 10: "Seizing Opportunities to Face Global Challenges”, is focusing on efforts to add value to the commodity sector via specialised programmes.

These include the Biodiesel B10 scheme (a blend of 10 per cent palm oil biodiesel) for the transportation sector, and the B7 scheme for the industrial sector, to be implemented from 2019 and aimed at making energy use sustainable, stabilising palm oil prices, and raising the incomes of smallholders.

RM30 million was allocated to help oil palm smallholders obtain Malaysian Sustainable Palm Oil (MSPO) certification, while RM100 million was allocated for the use of Cuplump Modified Bitumen (CMB) technology in road construction in ports and industrial areas in stages.

This is expected to improve demand for Cuplump and raise prices of the commodity, directly benefiting rubber smallholders and tappers nationwide.

Under the Rubber Production Incentive scheme, RM50 million has been allocated to help reduce the impact of falling rubber prices on smallholders.

Under this scheme, rubber smallholders will receive income support if the rubber price falls below RM2.20 a kilogramme.

Kok said 2019 is seen as a challenging year for the agri-commodity sector amid global economic growth of only 3.7 per cent

However, she added, the ministry will continue to focus on the plantation and commodity sectors, which contribute substantially to the nation’s economic growth and help boost rural residents’ incomes. — Bernama