ADDITIONAL ALLOCATION FOR FOOD PARK DEVELOPMENT

LANCHANG (Malaysia), Jan 13 (Bernama) -- The Ministry of Agriculture and Agro-Based Industry has approved an additional allocation of RM70 million (US$19.6 million) for the development of Permanent Food Production Park (PFPP) projects throughout the country.

Its Minister, Mustapa Mohamed said the PFPP was started in 2000 and
there were now 45 such projects encompassing 7,047 hectares in the country.

The PFPP represents a high impact project implemented by his Ministry, he
said, when met after the national level launch of the PFPP and the Lanchang
Modern Agriculture Fruit Park by the Prime Minister Abdullah Ahmad Badawi here,
in east coast state of Pahang Tuesday.

He said the implementation of the PFPP was also in line with the strategy of
the Third National Agriculture Policy to encourage large scale commercial
farming involving high technology by agricultural entrepreneurs and private
companies.

On the additional allocation, Mustapa said that RM25 million from it would
be allocated for the development of infrastructure at the PFPP Lanchang.

"To date, the Ministry has spent RM14 million to develop basic facilities
such as roads, electricity and water at the PFPP Lanchang.With the addtional
RM25 million allocation, it will bring the total allocation for the PFPP
Lanchang to RM39 million," he said. (US$1=RM3.56)

He said the PFPP Lanchang was also the biggest such project in the country
involving an area of 3,600 hectares.

"The PFPP Lanchang has two components, the PFPP entrepreneur and the PFPP
private," he explained.