Sime's Sarawak rice venture

CONGLOMERATE Sime Darby Bhd has identified 7,000ha of land in Sarawak to start its rice production venture, its chairman Tun Musa Hitam said yesterday."As we go on, we'll increase it (the hectarage)," he told reporters on the sidelines of the World Economic Forum on East Asia in Kuala Lumpur yesterday.Musa said that to help meet the country's food needs, Sime Darby will use advanced technology, including Chinese expertise, to produce higher yield compared to existing production methods."God willing, it will be more than the average produced now. The Sarawak state government is positive about this, and they will make available more land," he added.
According to previous reports, the new fields would be able to produce at least nine tonnes of rice per hectare.Malaysia produces about 1.6 million tonnes of rice a year, which accounts for about 70 per cent of annual demand.Amid rising global food prices, the government has identified Sarawak as Malaysia's new rice bowl to boost production. The government has allocated RM4 billion for the Food Security Policy, of which RM2.5 billion has been approved to increase food production. Farmers are also given incentives to boost the national stockpile.Under the Ninth Malaysia Plan, government-linked companies (GLCs), agriculture associations and cooperatives are encouraged to venture into large-scale food production.Musa said that unlike crude palm oil, which Sime Darby sells worldwide, the rice produced in Sarawak will be exclusively for local consumption.He added that details of the project, such as production and investment costs, will be announced later."We have already identified how we are going into it, but the target, the cost, and all that (will be determined later). "Of course, there will be due diligence to make sure that it is productive, economic and contributing."And there will be more of such projects, I should think. The government had announced its intention to intensify rice production."Asked if the latest project was Sime Darby's national service to the country, Musa said: "A little bit of that, but we must make sure that it is viable, going to be profitable, and of quality that can contribute to the food needs of the country."-www.btimes.com.my