WORLD TRADE G/AG/N/MYS/7
10December 1997
ORGANIZATION(97-5410)
Original: English Committee onAgriculture
NOTIFICATION
Theattachednotificationconcerningdomesticsupportcommitments(TableDS:1andtherelevant
Supporting Tables) forthecalendar year1996 wasreceived from thedelegation ofMalaysia on
24November 1997.
_______________
Theonlyexisting domestic agricultural support measures applied byMalaysia arethose listed
intheattached Supporting Tables DS:1 andDS:2.G/AG/N/MYS/7
Page2Supporting Table DS:1 DOMESTIC SUPPORT: Malaysia
REPORTING PERIOD: calendar year 1996
Measures exempt from thereduction commitment -"Green Box"
Measure type Name anddescription ofmeasure withreference tocriteria inAnnex 2 Monetary value of
measure inyearin
question
RMmillionData sources
1 2 3 4
1) Drainage andirrigation facilities
Construction andprovision
ofdrainage andirrigation
facilities torural farmers.General Services which benefit rural andsmallholding farmers. 287.0 MOA
2) Research andDevelopment
(R&D)
R&D programmes General services provided tomost crops andagricultural programmes involving small scale farmers
toreduce unitcosts, enhancing efficiency andfinding newuses.30.0 MOA
3) Marketing
Marketing services General services provided totheagricultural sector. Marketing ofproduce ishowever limited to
smallholder produce.21.5 MOA
4) Extension services
Extension services General services which benefit rural andsmall holding farmers andinclude pesticide inspection
services andtransfer ofinformation andresults ofR&D toproducers.4.4 MOA
5) Price Subsidy andGuaranteed
Minimum Price
Income Support Bothforms ofincome support measures areprovided onlytopaddy farmers inthecontext ofpoverty
redressal andupliftment ofthesocio-economic wellbeing ofpaddy farmers. TheGMP isaimed to
prevent theprice ofpaddy from falling toolowbothseasonally oroveraperiod oftime. ThePPSis
toensure thefarmers receive areasonable income.
Boththese forms ofincome support policies havenoeffect ontrade andthere arenodeliberate
attempts tomaintain domestic prices higher thanfreeatfrontier/world prices ofrice.411.1 MOAG/AG/N/MYS/7
Page3Supporting Table DS:2 DOMESTIC SUPPORT: Malaysia
REPORTING PERIOD: calendar year 1996
Measures exempt from thereduction commitment -Special andDifferential Treatment -"Development Programmes"
Measure type Name anddescription ofmeasure withreference tocriteria inArticle 6:2 Monetary value of
measure inyearin
question
RMmillionData sources
1 2 3 4
1)Fertilizer subsidy
Fertilizer subsidy schemes Measure isaimed atincreasing productivity andincalculating Good Agricultural Practices
(GAP) amongst smallholder. Amounts granted arelimited. Paddy farmers receive 40kg
(2bags) ofureaand80kg(4bags) mixture (nitrogen, phosphate andpotassium) for
every acre. Only paddy farmers withpaddy landbelow 2.4hectares or6acres ofpaddy landare
eligible.90 MOA
2)Investment subsidies
Credit concession Measure isaimed atreducing production costs andencouraging farmers tobeless
reliant onout-right subsidies. Concessionary credit isalsoprovided topromote
innovations onagricultural practices, promote productivity improvements, hence
increasing production andincome. Credit concessions arelimited toindividual
farmers andsmallholder.*nil MOA
*Agricultural credit wasdiscontinued in1996