August 14, 2008

Malaysia's Prime Minister Datuk Seri Abdullah Ahmad Badawi has expressed disappointment that some banks are still hesitant when it comes to granting loans for agro-based projects.

The Prime Minister said small and medium entrepreneurs venturing into agro-based industries can be helped by the SME Bank which had been created specifically to assist them.

Badawi was speaking at the launching of the Malaysian Agricultural, Horticultural and Agro-Tourism (MAHA) Exhibition 2008, Tuesday (August 12, 2008).

MAHA 2008 is the sixth trade fair based on agriculture that has been held since MAHA 1999 and represents the biggest agricultural exhibition in South-east Asia.

The exhibition is being held at the Malaysia Agro- Exposition Park, Serdang, until Aug 23.

Abdullah also hoped that the Ministry of Agriculture and Agro-based Industry would assist the small and medium entrepreneurs as it had been showing good progress.

Abdullah also said that the Economic Planning Unit had been asked to separate the figures contributed by the agro-based industries from the other commodities to enable the growth of the other sectors besides oil palm, rubber and cocoa to be observed more clearly.

He said the move was crucial as the combined figures made it difficult for the government to evaluate the progress of the agro-based industry which relied on traditional agriculture and the country's food production.

Abdullah also lamented about the lack of labour participation in this sector, particularly among the young.