KUCHING (Feb 16): The Sago and Nipah Development Board Bill, 2022 was passed at the State Legislative Assembly (DUN) today, which provides for the establishment of a board to oversee the development of sago and nipah industries.

Modernisation of Agriculture and Regional Development Minister Dato Sri Dr Stephen Rundi in his winding up speech before the Bill was put to a vote, said the establishment of the board is long overdue.

He explained this was because the nipah and sago industries have been seeing declines in production and income due to competition from other crops such as oil palm, pepper and rubber.

He also said the lack of control and regulations within the industries, and industry players operating in unorganised and fragmented segments have also contributed to the current scenario.

“Though long-overdue, it is timely to set up a body to oversee all operations in the nipah and sago industries,” said Dr Rundi.

A total 13 assemblymen participated in the debate of the Bill after its second reading.

They comprised DUN members from Beting Maro, Balingian, Tanjung Batu, Tanjung Datu, Tellian, Daro, Serembu, Lingga, Jepak, Kota Sentosa, Ba’ Kelalan, Padungan and Bawang Assan.

Dr Rundi said he appreciated some concerns made by the DUN members in their speech, and he also took note of the good suggestions made by them.

He pointed out as Sarawak endeavours to achieve high income economy by 2030, the socio economic development linked to these industries should be looked into.

“We want commercialise way of doing things, be more profitable. Having said that, towards the direction, the role of public sector is very important to be the driving force,” he said, adding the participation of younger generation in these industries will also be encouraged.

When tabling the Bill earlier, Dr Rundi said that the Sago and Nipah Development Board (SDNB) will be established with the passing of the Bill, to assist the government in its planning to ensure the future viability and sustainability of the sago and nipah industries.

He revealed that the state’s sago industry is presently dominated by smallholders which accounted for 92 per cent of the total estimated planted area of ​​32,329 hectares.

Currently, there are eight sago processing factories in operation with an average production of 1 to 1.5 metric tonnes of sago starch per hour.

According to Rundi, Sarawak is the world largest exporter of sago flour and the state in the year 2020 exported 37,884 metric tonnes of sago starch valued at RM78.29 million, mainly to Peninsular Malaysia and Japan with 51.27 per cent and 35.47 per cent of the total export volume respectively.