Govt To Promote Kenaf In A Big Way

BACHOK, Aug 22 (Bernama) — The government will promote kenaf (Hibiscus Cannabinus)
in big way by streamlining investments, holding promotions and developing infrastructure for
the crop, said Prime Minister Datuk Seri Abdullah Ahmad Badawi.
He said the government had also identified a slew of incentives for kenaf farmers, among
them the provision of soft loans, assistance in seed supply and land fertilization.
“Tax incentives will also be given to boost the kenaf industry. Among others companies
implementing kenaf projects will enjoy tax exemption for 10 years from the date they start
making profits.
“Or tax investment allowance up to 100 per cent for eligible capital expenditure for five
years,” he said when opening the kenaf collection, processing, packaging and distribution
centre in Beris Lalang here Friday.
Abdullah also witnessed the exchange of agreement documents between Symphony Advance
Sdn Bhd and Samsung Cheil Industries Inc and exchange of Memorandum of Understanding
(MOU) documents between Majlis Amanah Rakyat (MARA) and Symphony Advance Sdn
Bhd pertaining to the project during the same function.
Abdullah said the companies would also enjoy tax exemption on dividend paid to
shareholders and stampy duty exemption for instruments of procurement or land leases.
He said under the Eastern Corridor Economic Region (ECER), the expansion of kenaf
planting was one of the policies of the government in line with its aim to strengthen
agriculture and agro-based industries.
He said emphasis would be given to big scale agriculture activites which had added value
besides the application of modern technology.
“To encourage the kenaf industry further, the government through the National Tobacco
Board and other agencies will continue to purse efforts to advance it,” he said.
He praised Symphony Advance Sdn Bhd for collaborating with Samsung Cheil Industries
Incorporated, a textile and chemical giant in Korea for developing and exporting kenaf
polymer composite from Kelantan.
“I understand Symphony Advance is exploring opportunities with the Samsung Group and other multinational companies to build a kenaf polymer composite factory in the plastic
industries belt in Kertih, Terengganu,” he said.
This showed, Abdullah said, that foreign investors continued to have confidence in the
Malaysian economy.
He added that the government would redouble efforts to promote the ECER to attract more
investors to it.
As for farmers, he said, they too would gain a lot as the kenaf plant matured within 100 days.
“It is estimated that the farmers can make an income of more than RM1,500 a month,” he
said.
On today’s function, Abdullah said Malaysia witnessed the sending of the first consignment
of kenaf powder to Korea totalling 1,000 tonnes and that the objective was to reach 2,000
tonnes monthly.
———————————-