Monday 23 July 2012

Rice industry official touts agriculture FDI in Malaysia


By Zaw Win Than 
A SENIOR rice industry official has called for greater encouragement of foreign investment in the agriculture sector in a bid to spur national development.
U Ye Min Aung, secretary general of Myanmar Rice Industry Association (MRIA), said agricultural development should be prioritised over industrial development as the sector employs about two-thirds of Myanmar’s workforce.
“Agriculture is very important [but] our rural infrastructure is very, very weak. Our previous government did not pay much attention to rural infrastructure but our present government has highlighted significance of rural infrastructure and of course the interests of farmers, who make up nearly 70 percent of our population,” he said at a roundtable program in Malaysia earlier this month.
“We should promote investment in the agricultural sector. For the time being most of the investment coming into Myanmar is resources based, mainly in oil and gas and hydropower. I think we have less than 1pc of foreign direct investment in the agricultural sector,” he said.
Agriculture contributes 35pc of gross domestic product, employs 66pc of the workforce and has strong potential to support poverty alleviation because 70pc of the country’s population live in rural areas, he said. Of Myanmar’s 43,239 registered private enterprises, food companies make up 35,827, predominantly rice mills, bean processing mills and oil mills, he said, adding that most of these were small family-run operations.
“Myanmar can be considered one of the main food sources for ASEAN … If we can exploit our potential in the agriculture sector, we can successfully set up agro-based industry,” said U Ye Min Aung, who is also a central executive committee member of the Union of Myanmar Federation of Chambers of Commerce and Industry.
“[There’s] no need to [prioritise industrialisation] in the short term because industrialisation requires a lot of investment, technology transfer and time to set up. So we have a lot of potential in agriculture and agro-based sectors and we need to utilise and optimise [this potential],” he said.
Other speakers at the one-day program included Dr Bridget Welsh, an associate professor of political science from Singapore Management University, U Ko Ko Lay, a deputy director in the Ministry of Commerce, Dr Tin Htut, rector of Yezin Agricultural University and U Than Htut, a director of Eden Group of Companies.
Titled “Understand the changes, realising the opportunities”, the July 9 event was held in Kuala Lumpur and organised by Institute of Strategic and International Studies Malaysia to highlight recent political, economic and business developments in Myanmar, touching on current trends and future directions as well as challenges and responses.
The event had a strong economic focus, with U Ko Ko Lay, deputy director of the Directorate of Trade’s International Trade Promotion Department, touting Myanmar as “a virgin land with abundant natural resources, highly literate population and huge workable labour force”.
“The [foreign] investment law will be amended and more reform measures will continuously take place in the future to build a democratic country. We also hope to receive all kinds of assistance, in all possible ways, such as financial assistance, technology transfer and technical assistance and capacity building activities to enable … the development of the country,” he said.
ISIS Malaysia chief executive Dr Mahani Zainal Abidin said recent developments in Myanmar had been “very much welcomed” by regional and international observers.
“The president has also announced the ‘second wave’ of reform and democratic processes further. The international communities have responded quickly,” she said, adding that the business community had “reacted equally fast”.
“Consequently, Myanmar is now on the radar screen of many governments and businesses,” she said.
U Ye Min Aung said that while Myanmar was “moving towards broader economic reforms and liberalisation” it needed more international support.
“We have no option but to develop our capacity and capability,” he said. “If we fail to do so we will become even more neglected and marginalised than we are at present.
“Myanmar has not yet entered the community of vibrant business environments in ASEAN, but there is much potential and opportunities for us to join the club of wealthy ASEAN nations before too long.”
 Original article here

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