Kenaf to get red carpet treatment

BACHOK: The government will promote kenaf (Hibiscus Cannabinus) in a 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 devised several incentives for kenaf farmers, such as
providing soft loans and assisting in seed supply and fertilisation.
“Tax incentives will also be given to boost the industry. 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 yesterday.
Abdullah also witnessed the exchange of agreement documents between Symphony
Advance Sdn Bhd and Samsung Cheil Industries Inc and the Memorandum of
Understanding between Majlis Amanah Rakyat and Symphony Advance Sdn Bhd. The prime minister said companies would also enjoy tax exemption on dividends
paid to shareholders and stamp duty exemption for instruments of procurement or
land leases.
He said the expansion of kenaf planting to strengthen agriculture and agro-based
industries was in line with the Eastern Corridor Economic Region (ECER).
He said emphasis would be given to large scale agriculture ventures which used
modern technology and had added value.
Abdullah praised Symphony Advance Sdn Bhd for collaborating with Samsung Cheil
Industries Inc, a textile and chemical giant in Korea for developing and exporting
kenaf polymer composites from Kelantan.
“I understand Symphony Advance is exploring opportunities with Samsung Group
and other multinational companies to build a kenaf polymer composite factory in the
plastic industries belt in Kertih, Terengganu.”
Abdullah said this showed foreign investors had confidence in the economy.
He said farmers would benefit as the kenaf plant matured within 100 days.
“It is estimated farmers can make more than RM1,500 a month.”
Abdullah said Malaysia would be sending a first consignment of 1,000 tonnes of
kenaf powder to Korea and the objective was to increase the amount to 2,000 tonnes
a month. — Bernama