Move is part of govt energy agenda, aims to connect national commodity strength with future of rural economy, says DPM
PUTRAJAYA: Palm-based B15 biodiesel production will begin through 19 plants from June 1 as part of efforts to link Malaysia’s commodity strength with the rural economy and help lower diesel prices, announced Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
Zahid, who is also Rural and Regional Development minister, said he has personally offered to chair a high-level committee on biodiesel production, which involves cooperation with 10 ministries, departments and agencies.
“The decision is meant to help lower diesel prices in the country,” he said at the Rural and Regional Development Ministry monthly assembly yesterday.
He said palm-based biodiesel should not be viewed merely as part of the government’s energy agenda, but also as a way to connect the country’s commodity strength with the future of the rural economy.
Agencies such as the Federal Land Consolidation and Rehabilitation Authority (Felcra), Central Terengganu Development Authority, South Kelantan Development Authority and Federal Land Development Authority (Felda) must view the potential seriously, he noted.
Zahid also said rural communities are exposed to global economic pressures, including rising input costs faced by smallholders and rural producers.
He said the majority of the 8.1 million people in rural areas would feel the impact of an uncertain global economy.
Citing the rubber sector, he said the cost of rubber seedlings has increased from RM2.74 to RM2.90, while fertiliser costs have risen by between 40% and 50%.
He noted that subsidies still have a place, but rural policy cannot stop at aid alone.
“We must move from merely helping to building systems, from subsidies to ecosystems, from programmes to markets.
“This group does not only need assistance. They also need a fair market, a shorter chain, more transparent prices and buyers who can give confidence.”
However, Zahid said ministries should not assume higher allocations next year, given the current economic conditions and geopolitical tensions in West Asia.
He said the ministry has received RM12.49 billion under this year’s budget, but every ringgit spent must produce clear outcomes for the people.
“Whatever budget is given, we must use it at the optimum level. That is why I want every ringgit spent to be translated into clear results.”
Separately, Zahid touched on political sentiment towards rural development agencies, stressing that the ministry could no longer be seen as just a “kampung ministry”.
He said agencies such as Majlis Amanah Rakyat, the Rubber Industry Smallholders Development Authority, Central Terengganu Development Authority, Felcra, Felda, Kedah Regional Development Authority and other regional development bodies have long contributed to rural development.
He said many of these agencies have historical roots in Umno’s long struggle and their role should not be dismissed because of political sentiment.
“Do not plant hatred just because we hate. Do not simply follow what people say, what people write or what goes viral. Virality is not reality. Look at reality.”
The event was officiated by Zahid at the ministry’s headquarters yesterday and attended by senior ministry officials, including newly appointed secretary-general Datuk Suriani Datuk Ahmad, who was previously Health Ministry secretary-general.
