Development of Agribusiness Enterprises - Asian Productivity ...

farms. These problems are further compounded by the seasonality of fruit production,
which leads to oversupply during the peak season and vice-versa during the off-season.
The problems are having a profound impact on the Malaysian fruit processing industry;
and
(b) pest and disease problems, which plague fruit production and result in significant
additional costs for implementing control measures.
In view of the above constraints, concerted efforts by both the government and the
private sector must be made to strengthen research and development activities in the area of
fruit production. Intensive market research and aggressive promotional activities should also
be undertaken to ensure that Malaysian fruit production remains competitive.
NEW PRODUCTS
Recent advances in technology have created new speciality natural products, derived
from herbs, medicinal plants, spices and aromatic plants. Global demand is increasing for
natural products such as food and health-related herbal products, cosmetics and toiletries,
aromatic and industrial products. Given the wide diversity of herbal and aromatic plant
species and natural resources available in Malaysia, the potential for discovering useful and
valuable products is good.
The main challenges faced by this industry are: (a) inadequate supplies of local raw
materials for the production of speciality natural products; and (b) a lack of know-how
regarding modern methods of production and processing.
To make Malaysia a major regional production center of new speciality products,
research and development activities should be strengthened and intensified, particularly in
areas such as the development of improved and cost-effective production technology for raw
materials and end-products. Attractive incentives to promote the development of this
industry by the private sector must be provided. In addition, aggressive marketing efforts
must be undertaken in order to penetrate export markets and position these products
favorably.
CONCLUSION
The Malaysian agriculture sector still has very good potential despite the shortage of
workers and trade liberalization under the World Trade Organization agreements and the
Common Effective Preferential Tariff scheme of the ASEAN Free Trade Area. However, to
maintain the viability and competitiveness of the sector, the public and private sectors need
to implement a number of changes. Policies and practices that promote growth and efficiency
must be promoted while those that hinder progress must be discarded. Research and
development activities and extension services must be strengthened in order to help the
country increase crop production. Farming costs need to be lowered, product quality needs
to be improved, and greater efforts made to ensure the sustainability of the environment.
BIBLIOGRAPHY
Arpan, S. S. “A Success in Business Negotiation for Agricultural Products with Special
Reference to the Farmers’ Organization Authority”, paper presented at an international
symposium, Thailand.
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