The plantations sector, which encompasses palm oil, rubber, timber, cocoa, pepper, kenaf and sago, has long been a key contributor to the national economy. In 2019, it accounted for RM86.1 billion of Malaysia’s GDP and RM128.5 billion of the country’s total export earnings. As the Secretary-General of the Ministry of Plantation Industries and Commodities (MPIC), Datuk Ravi Muthayah plays a pivotal role in executing the policies that are pivotal to ensuring the strength of this sector. And he sits down to tell more to International Business Review.
An economist by training, Datuk Ravi’s has spent 31 years in the Civil Service, starting at the Ministry of Finance in 1989, followed by a stint at the Ministry of Domestic Trade and Consumer Affairs 10 years later. Later, he was named the Deputy Director of the Agriculture Section at the Economic Planning Unit (EPU).
This experience was his first foray into the world of agricultural commodities, and it has served him well during his time at the MPIC, where he served as the Deputy Secretary-General (Commodities), before being promoted to his current role.
Presently, one of his main tasks is to lead the MPIC in driving initiatives that will strengthen Malaysia’s position as a market leader in plantation commodities. The key to this, he says, is through enhancing sustainability and industrial advancement, which in turn will boost the global competitiveness of Malaysia’s commodities.
Supporting the National Economy
The importance of plantation commodities to Malaysia cannot be underestimated. Led by palm oil and rubber, it not only (as aforementioned) contributes RM86.1 billion to the GDP and RM128.5 billion to export revenue, it has also enhanced the standards of living in rural Malaysia.
This is because it creates job opportunities and income to people living in those parts of Malaysia. For instance, in 2019, the sector provided employment to more than 1 million people including more than 490,000 smallholders.
Datuk Ravi said that “In the last decade, although the country has shifted from an agricultural and commodities-based economy, to one driven by services and manufacturing, the sector still serves as an important pillar of the national economy.” He adds “When COVID-19 pandemic brought disruption, particularly to the service and hospitality industry, agricultural commodities supported our economy, as well as contributing to the nation’s food security and healthcare industry.”
Growth through Collaboration
Datuk Ravi believes that in order for the sector to grow, partnerships between Ministry and its agencies with industries should be fostered. “Such a partnership,” he states, “will not only serve as a platform for the better communication and understanding of the industries plights and challenges, but will also involve the industry players in the formulation of better policies, strategies as well as incentives to ensure that they could expand and prosper.”
In this regard, the Ministry works with industry players on promotional campaigns, programmes and initiatives to create awareness on the importance and contribution made by our commodities in order to gain public support.
