By WU VUIDE
KOTA KINABALU: Agriculture, Fisheries and Food Industry Minister Datuk Jamawi Jaafar will bring the outcome of an engagement session on the implementation of the Budi diesel programme to the Sabah Cabinet.
He said the engagement session, held at his office, involved heads of departments and agencies under his ministry as well as heads of departments under the Federal Agriculture and Food Security Ministry in Sabah.
The discussion was also attended by the Treasury Secretary-General of the Finance Ministry, Tan Sri Johan Mahmood Merican; Sabah Domestic Trade and Cost of Living Ministry (KPDN) director Shahril Nizam; and officials from other ministries.
The meeting highlighted conditions on the ground, particularly in rural areas and villages, among food industry players and transport operators affected by the programme, he said after witnessing the signing of two memoranda of understanding (MoUs) at a hotel.
The first MoU is for a development project in Tuaran between the Sabah Rubber Industry Board (LIGS) and KTI Sdn Bhd.
The second MoU is for the proposed development of a large-scale commercial dairy farm in Sabah between LIGS, the Sabah Department of Veterinary Services (DVS Sabah) and Farm Fresh Sdn Bhd.
He said Sabah’s situation differs from that in Peninsular Malaysia because many rural areas lack adequate conventional school bus services, making local transport operators an essential part of the education system and community mobility.
Jamawi said he had obtained the approval of Chief Minister Datuk Seri Hajiji Noor to hold the engagement session.
“We hope there will be improvements to the governance and implementation of Budi diesel so that it better suits the circumstances and needs of Sabahans,” he said.
In a Facebook post, Jamawi said one of the main proposals raised during the engagement session was to align the implementation of Budi diesel with the procedures under the Budi RON95 programme.
He also proposed simplifying the approval and application process for vehicle owners using informal financing arrangements, commonly known as “sambung bayar” or loan transfer schemes.
He recommended increasing diesel quotas for farmers, livestock breeders, rubber tappers and food industry operators in both rural and urban areas, many of whom rely on four-wheel-drive vehicles, based on their monthly travel distances.
Other proposals included providing monthly cash assistance through the Budi Agri-Komoditi initiative to small-scale farmers, livestock breeders, rubber tappers and food industry operators.
On the two MoUs, he said the initiatives support the state’s target of increasing its gross domestic product (GDP) from the current RM85 billion to RM120 billion annually.
He said achieving the target would require a concerted effort involving the government, the private sector, statutory agencies and Sabahans, while accelerating economic diversification from traditional dependence on natural resources to high value-added industries.
The MoU signed between LIGS general manager Sabdil Tanjong and KTI chief executive officer Datuk Dr Gordon Loke aims to explore a proposed 500-acre mixed-use development in Tuaran comprising commercial shop-lots, terraced houses, apartments and industrial areas.
Jamawi said the proposal has significant potential given Tuaran’s strategic location as the main gateway to Sabah’s northern and east coast regions.
The MoU signed between LIGS, DVS Sabah director Dr Zul Bahar Abdul Rashid and Farm Fresh chairman Dato’ Dr Quaza Nizamuddin A. Hassan Nizam aims to explore the development of a large-scale commercial dairy farm through the Keningau Dairy Valley project.
Jamawi said the project would attract private investment and technical expertise to strengthen the local dairy industry, improve the state’s self-sufficiency in the production of fresh milk, meat and dairy products, and create more employment and training opportunities for livestock breeders and Sabahans.
“If successfully realised, these projects will not only stimulate economic growth in Tuaran and Keningau, but will also contribute significantly towards SMJ 2.0’s target of achieving a state GDP of RM120 billion annually,” he said.
Also present were Deputy Ministers Datuk Ruslan Muharam and Datuk Hendrus Anding, Permanent Secretary Datuk Jumain Jikah @ Abdul Ghani, and LIGS chairman Datuk Seri Jahid Jahim.
Jamawi (third right), witnessing the MoU signing ceremony between Dr Zul Bahar (second left), and Dato’ Dr Quaza Nizamuddin (second right).
