Minister Lim Leaves Primary Industries Ministry With Major Success

Dato' Seri Dr. Lim Keng Yaik left the Primary Industries Ministry after 18 years forerunning the country's commodity sector that eventually grew from a RM 13 billion a year earner in 1986 to a sector that is now worth RM60 billion. Following the recent reshuffle of Malaysia's Federal Cabinet by Prime Minister, Date' Seri Abdullah Ahmad Badawi, Data' Seri Dr. Lim has been appointed as the Minister of Energy, Water and Communications. The Ministry of Primary Industries, on the other hand, has been renamed as Ministry of Plantation Industries and Commodities effective 27 March 2004.

One of the biggest achievements in his 18 years of being the Primary Industries Minister was transforming the primary industries sector from a "commodity-based" to a "resource-based" sector, and at the same time securing more attractive prices for Malaysia's commodities. At the handing-over ceremony to his successor, Datuk Peter Chin Fah Kui on 30 March, Dato' Seri Dr Lim said that the Ministry has been focusing on downstream activities and exploring new markets to improve and restructure the commodity sector. For example, we have added more value-added products such as oleochemicals from palm oil and made high quality furniture from Rubberwood," said the Minister, adding that the smallholders and farmers have also benefited from the high prices of rubber, cocoa and from the sale of timber products.

The Palm Oil Credit and Payment Arrangement (Pocpa) which was set up in 1992 was another successful effort during his tenure. Countries, especially those with shortages in foreign exchange, were normally granted a two-year credit line to buy the commodity from Malaysia through Pocpa. The payment arrangement promoted counter-trade involving the exchange of palm oil for a host of products ranging from jet fighters to railway infrastructure, while at the same time expanded the global market for the commodity.

Dato' Seri Dr. Lim highlighted that the country's commodity export reached RM595 billion in 2003, a 21% increase from the export in 2002. From the amount, palm oil and related products contributed RM27.7 billion, while timber, rubber, cocoa, minerals and tobacco contributed RM16.6 billion, RM8.6 billion. RM1.25 billion, RM4.2 billion and RM860 million, respectively. In addition, furniture export is expected to hit RM6 billion in 2004 compared with RM5.7 billion last year. "The Ministry has done its best and I am leaving with a happy heart. I am also confident that Datuk Peter Chin will be able to take the Ministry to greater heights.'' he said.

Under the new cabinet, two different ministries will now manage the timber industry. The Ministry of Plantation Industries and Commodities will deal with the downstream sector of the industry while the National Resources and Environment Ministry is in charge of controlling the upstream sector such as protecting and conserving the natural forests and resources. Among the ten authorities incorporated under the latter include the Forestry Department Peninsular Malaysia, Forest Research Institute Malaysia (FRIM). Department of Wildlife and National Parks (Perhilitan) and the Department of Environment. The administrative structure for the timber industry, however, will only be applicable in Peninsular Malaysia where the industry is under federal jurisdiction. Sabah and Sarawak will continue to be administered by their respective state ministries, since the two states have their own state Forestry Acts. Both states have autonomous control over natural resources on land.