11MP TO SPUR RURAL ECONOMIC ACTIVITIES

KUALA LUMPUR, Oct 18 (Bernama) -- Several initiatives to generate local economic activities in rural areas will be undertaken in the remaining period of the Eleventh Malaysia Plan (11MP).

The initiatives include encouraging more private investments, promoting rural economic activities, widening the implementation of initiatives under the prosperous village concept, embracing the digital economy and enhancing employability of people in rural areas.

The Mid-Term Review of the Eleventh Malaysia Plan, 2016-2020: New Priorities and Emphases report released by the Ministry of Economic Affairs said private sector participation in terms of investment and championing economic activities in rural areas remained relatively low.

The report was presented today by Prime Minister Tun Dr Mahathir Mohamad in Parliament today.

It said that poor capitalisation of information and communications technology (ICT) for business development and socioeconomic opportunities, as well as low education attainment and lack of skills, had positioned rural communities at a disadvantage.

“Going forward, competent anchor companies will be further encouraged to take the lead for the entire value chain, which includes providing skills training for rural entrepreneurs. 

“This will provide jobs and entrepreneurial opportunities for locals and will benefit the Bottom-40 households income group,” it added.

The review said sustainable rural economic activities such as agro-based industries and eco-tourism would be promoted to narrow the income gap, with other activities in the manufacturing and agriculture sectors intensified through the development of resource-based industries by leveraging on advantages due to location.

“Micro-entrepreneurs, and local small and medium enterprises will be supported to undertake businesses in the rural areas.

“The diversification of economic activities and provision of necessary support will stimulate the economy of the less-developed states and narrow the development disparities among regions,” it said.

Meanwhile, the digital economy would be capitalised on for the expansion and sustainability of businesses in rural areas and increase the competitiveness and capacity of rural entrepreneurs, as well as to narrow the urban-rural digital divide.

In this regard, ICT infusion would be increased by expanding digital adoption, utilising cloud services, enabling e-payment, accelerating trade through e-commerce and encouraging the use of fulfilment hubs.

-- BERNAMA