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INTEXTATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

DEVELOPMENT ECONOMICS DEPARTMENT

Public Disclosure Authorized URBA AND REGIONAL ECONOMICS DIVISION

URBAN ANW-REGIONAL REPORT NO. 72-1 ) R-72-01

DEVE)PMIET ISSJES IN THE STATES OF , TRENGGANU

Public Disclosure Authorized AND PA HANG, '

JOHN C. ENGLISH

SEPTEMBER 1972 Public Disclosure Authorized

These materials are for internal ulse on2;7 auid are circulated to stimulate discussion and critical coxmment. Views are those of the author and should not be interpreted as reflecting the views of the World Bank. References in publications to Reports should be cleared -iith the author to protect the

Public Disclosure Authorized tentative character of these papers. DEVELOPMENT ISSUES IN THE STATES OF KELANTAN, TRENGGANU AND , MALAYSIA

Table of Contents

Introduction

2. Economic and Social Conditions

2.1 Population

2.2 Employment Characteristics

2.3 Incomes

2.4 Housing

2.5 Health

2.6 Transportation

2.7 Private Services

3. Economic Activity

3.1 Agriculture

3.2 Fisheries

3.3 Forestry

3.4 Manufacturing

3.5 Trade

4. Development to 1975

4.1 Agriculture and Land Development

4.2 Forestry

4.3 Projection of Agricultural and Forestry Output

4.4 Manufacturing Page

5. Conclusions 87

5.1 Transportation Links 89

5.2 Industrial Policy 92

5.3 The Role of 96

5 .4 The Significance of Development in Pahang Tenggara 99 5.5 Racial-Balance 103

Tables and Figures 106

~. + A5Af2;DilXlt2¢:;uessor-c.iL?-v ylixi}Ck:. -. h.bit1!*9fwI-- 1. Introduction

The following report is based on the findings of a mission to

Malaysia from July 3 to 25, 1972- by Mr. English. -The principal objective

of this study is to investigate the problem of regional balance in West

Malaysia with particular reference to the east coast states of Kelantan,

Trengganu and Pahang. it should be pointed out at the outset that did

not deal at all with the states of East Malaysia i.e. and .

Generally speaking, national figures refer to West Malaysia only, except

where explicitly stated.

The study aims to:

(1) assess the current situation, comparing the economic and social

conditions in the three east coast states with those in the rest of West

Malaysia;

(2) assess the development potential. of the east coast states,

utilizing available data on current production, resources and linkages

with the rest of the economy;

(3) assess the impact of current public and private development in

the area relative to that in other states, taking into account proposals

in the Trengganu, Pahang Tenggara and Tenggara studies;

(4) indicate possible policy measures which might be undertaken or

problems which might be subjected to more detailed study. -2-

Chapter 2 of the report sumnrarizes the data obtained on, economic and social conditions with particular reference to the east coast states. Chapter 3 indiacates the present scope of economic activity of the states and the linkages with the rest of the Malaysian economy. This is $ollowed in Chapter 4 by a review of information, obtained on the plans of major agencies for the Second Malaysia Plan (SMP) period, particularly for Kelantan and Trengganu. In Chapter 5 an attempt is made to project outputs in major sectors for the 3 states to 1980 and to assess the impact of the major Pahang Tenggara project. The concluding chapters discuss a number of problems raised by the earlier analysis.

2. Economic and Social Conditions

2.1 Population

The most recent census was carried out in Malaysia in 1970. The previous count was taken in 1957. Full tabulations from the 1970 cen.zus for age and racial distribution are not yet to hand. A post-enumeration

sample survey (PESS) was carried out after the 1970 census which investigated income, employment and educational attainments. Results of this survey are

also not yet available, but it is hoped that they will be obtained in the near future. The Malaysian Statistics Department is hopeful of finishing

these tabulations by the end of 1972.

The populations for the states of West Malaysia in 1957 and 1970

are shown in Table 2.1. Total population grew from 6.279 million to 8.8

million an increase of approximately 40 percent (2.7 percent per annum). -3-

Only 3 states had population increases of above this proportion,

(which includes the federal capital of ), Pahang and Trengganu. The slowest rate of growth, 28 percent (2 percent per annum) was recorded in the west coast state of . The population of the remaining states all grew by between 30 and 40 percent over the 13 year intercensal period.

Detailed population figures by district are given in Appendix

Table II.1. For purposes of exposition t-hese have been mapped in Figure 1.

This shows a very interesting picture. Those districts which grew in population by more than 50 percent in the 1957-70 period, fall into two distinct groups. The first are larger urban areas experiencing significant industrial growth, namely Johore Bahru, Kuala Lumpur/Klang and Penanig Central (including the port and industrial area at Prai). The others are "frontier" but where development areas at present largely undevelopedkis now taking place. These are con-

centrated in Pahang, Ulu Kelantan and Tanah Merah districts in Kelantan,

Dungun in Trengganu, Padang Terap, Sik and Baling districts in , and

Kota Tinggi district in Johore. The lowest increases, less than 25 percent

took place mainly in districts heavily dependent on smallholder agriculture

e.g. , Tumpat and Bachok in Kelantan, Kuala Pilah and Rembau in

Negri Sembilan, Pontian in Johore, and Lower Perak in Perak and Bandar Bahru and Yen in Kedah or in districts dominated by rubber

plantations or mining with few alternatives e.g. Kulnim in Kedah and in Perak. Particularly in the first group i.e. those dependent on small- holder agriculture there appears to have been a slower growth of population in districts nearer major urban areas compared to other similar districts e.g. Haar and Batu Pahat in Johore ihich are further away. Thus in

Kelantan the figures suggest that there have been two movements first from rural areas to , particularly from the adjacent districts and to the frontier areas of the state i.e. Tanah Merah and Ulu Kelantan Districts.

Table 2.1: WEST MALAYSIA - POPULATION, 1957 and 1970, POPULATION . GROWTH AND MALE-FEMALE RATIO BY STATE

Percentage Male/Female Population Growth Ratio State 1957 1970 1957-1970 1970

Johore 927,565 1,273,990 37.3 1.008 Kedah 701,6h3 955,374 36.2 1.012 Kelantan 505,585 680,626 34.6 .979 291,,246 403,722 38.6 .957 Negri Sembilan 36h,331 479,312 31.6 1.009 Pahang 312,944 503.131 60.8 1.076 & P.W. 572,132 776,770 35.8 .998 Perak 1,221,390 1,562,571 27.9 1.002 90,866 121,062 33.2 1.000 Selangor 1,012,891 1,629,386 60.9 1.o52 Trengganu 278,165 hO5,751 45.9 1.012

Total 6.278,758 8,801.399 40.2 1,o14

I4qle-Female ratios have been computed and are shown in Tables 2.1,

Appendix Table II.1 and in Figure 2. These give a broadly similar picture

suggesting migration to the three main urban-industrial areas and the frontier

areas. The slow growth of the mining-industrial area of is apparent in

these figures. -5

An estimate of the level of urbanization has been made, basing this upon population in incorporated places of over 5.000 inhabitants. The figures by state are given in Table 2.2 for both 1957 and 1970. Nationally the proportion of population in urban areas rose from just under 32 percent to 34 percent., The proportion fell .in only 2 states, Penang and Pahang.

The former is probably a reflection of suburban type development, but the latter a result of major population increase following land development in previously unsettled areas, plus the existence of one or two slow growing mining towns. The other two east coast states are both below average in urban population, but that in Trengganu increased rapidly, mainly based on growth of Kuala Trengganu (this may partly reflect bourdary changes).

Table 2.2: WEST MALAYSIA - URBAN POPULATION BY STATE, 1957 and 1970

Urban Population Percentage of Total State 1957 1970 1957 1970

Johore 263,899 398,955 28.5 31.3 Kedah 98,654 137,544 14.1 14. Kelantan 82,935 124,800 16.4 18.3 Malacca 69,851 106,791 24.0 26.5 Negri Sembilan 74,869 131,399 20.6 27.4 Pahang 84 ,883 111,084 27.1 22.1 Penang 336,026 433,935 58.7 55.9 Perak 407,552 582,157 33A1 37.3 Perlis 60o65 8,757 6.7 7.2 Selangor 505,019 837,748 49.9 51.4 Trengganu 52,834 117,021 19.0 28.8

Total 1,982,587 2,990,191 31.6 34.0 -6-

Detailed data on racial distribution from the 1970 census are

not yet to hand as noted earlier. Table 2.3 shows t.he estimates derived

by the Socio-Economic Sample Survey of Households (MSSH) carried out in

1967. These figures are presented by region rather than by state-/ and

because the sample was relatively small (about 2.4 percent) and small of error. proportions3 e.g. of "other rates" are subject to high probabilities

This table shows clearly the major differences in racial composition of the

east coast states and the rest of the country.. Tihis region is the only one

in which are clearly predominant, the Northern region having 54 percent

Malays and the others less than half. Within the east region the Chinese

and Indian component is concentrated in Pahang. In 1957 the Chinese

proportion of the population was 5.7 percent in Kelantan, 6.5 in Trengganu

but 34.6 in Pahang. For Indians the corresponding percentages were 1.1,

1.0 and 7.0 respectively. Thus Kelantan and Trengganu are overwhelmingly

Malay in character, while Pahang has a racial composition much closer to

the national average.

Table 2.3: WEST MALAYSIA - BREAKDOWN OF POPULATION BY RACE AND RBGION, 1967

Race South Central Southwest North East

Malay h9.1 38.5 33.9 54.0 82.5 Chinese 39.2 46.3 42.9 3h.7 13.2 Indian 10.5 14.3 22.1 8.9 3.0 Other 1.2 0.9 1.1 2.4 1.3

Total 100.0 100.0 100.0 100.0 100.0

1/ The regions used in the MSSH are based on groups of States and are as follows: South - Johore and Malacca Southwest - Negri Sembilan and Selangor Central - Perak North - Penang, Kedah and Perlis E

2.2 Eployment Characteristics based The employment information presented here is primarily date information will upon the 1967 MSSH. As indicated earlier more up to shows the be available in the next few months. Table II.2 in the Annex is employed, proportion of tihe population in the 15-614 age group which that the proportion unemployed or outside the labor force. This' indicates is markedly of the population which is in the labor force and employed country. This is higher in the eastern zone than in the remainder of the of the 15-64k age in sharp contrast to the North 7one, where 142 percent data by group is outside the labor force. Table II.3 breaks down the as a whole. sex for the eastern and northern zones and for West Malaysia is low This indicates that while the proportion outside the labor force among for both sexes in the East zone, this is particularly the case the labor females where only 1414 percent are recorded. as being outside the North force, in contrast to 57 percent nationally and 68 percent in data zone. Why this should be the case is not clear from the other result from computed from the ?4SSH report. Part of the difference may etc. may have problems with the sampling frame since men in logging camps femaale been missed. On the other hand this does not explain the high are participation rate reported for the east zone. Further investigations being made to illuminate this problem. Among those persons who are outside the labor force there appear I.4 and II.5. to be no major differences among regions see Annex Tables of non-wqorkers because Among males there appeared to be a greater proportion F;List>@K.Cl.1..W ...... of seasonal factors in the North than in the east or other zones, and a greater degree of disablement in the east than elsewhere. Given the high female participation rate in the east, one might have expected a lower proportion of "housewives" among those females outside the labor force in

that zone. .However, this does not appear to be the case.

Among those who are employed the breakdoarn by broad induistry

group is given in Table II.6. Agricultural activities are divided into

two categories. Those requiring substantial processing i.e. rubber, oil palms, coconuts and tea are separated out from general agriculture, forestry, hunting and fi.shing. The latter includes padi growers and semi-subsistence producers and generally represents (except for forestry) the lower productivity. end of the agricultura.l spectrum. in West Malaysia as a whole almost 52 per- cent were in agricultural occupations in 1967, with 30 percent in processed. crops. The highest proportions in agriculture were in the south and east, but in the south 50 percent of total employment was in crops for processing as against only 10 percent in itother agriculture.' In the east the correspond- ing figures were 24 and 37 percent i.e. agricultural activity is much more oriented towards the lower productivity and traditional lines of production.

The east zone appears to have approximately 9 percent of its labor force in manufacturing, close to the national average. However in general the pro- portions employed in construction and services are below average, suggesting a generally lower level of economic activity. Thus 75 percent of the labor force is in goods producing activities and 25 percent in services, compared to 67 and 33 percent respectively in the country as a whole. This picture is reinforced wien those employed are subdivided

by socio-economic g>oup as in Annex Table II.7. In the east zone those

in smallholding agriculture account for 30 percent of the total, compared

to 22.5 percent nationally. The vast majority are either owner operators

or tenants.- only 2,5 parcernt of the labor force are wage earners on small

farms, compared to 7 percent nationally. In addition, only 6 percent are

estate workers)against 13 percent nationally. Conversely,in the east

almost 2 percent of those employed indicated that they were family workers

without pay as against 15 percent nationally.

When those employed are subdivided by employment status a similar

picture emerges (see Table II.8). When those recorded as unpaid helpers

are divided by sex it is clear that the major source of the difference

between the east zone and the rest of the country is among females. Almost

48 perceint of those "employed" in the east classified themselves as unpaid,

compared to 31 percent in the country as a whole. This difference may

account in part for the high female participation rate noted earlier, i.e.

a differing interpretation of the questions may have resulted in some

inclusion of women as umpaid helpers in the east zor.e who would have been

classified as ouitside the labor force (perhaps holisewives) elsewhere.

This table also emphasizes the self-employed nature of the economy

in the east zone, only 31 percent of those employed being wage or salary

earners as compared to 57 percent nationally. This difference is likely to

be particularly marked in Kelantan and Trengganu, as there is some concen-

traTion of the es'.ute and mining sec'tors in Pahang. L.u-JJ. - 10 -

2.3 Incomes

Data on incomes on a regional basis in Malaysia is somewhat

scanty at present. It is anticipated that additional information will be provided by the post-enumeration survey referred to earlier.

Two attempts have been made to estimate gross domestic product

in MXlaysia by State, the first for 1965 by Marabelli,- the second covering

the years 1965-1968 was by Lim. Details of the Marabelli 1965 ekstimate and

Lim's estimates for 1965 and 1968 are given in Annex Tables II.8, II.9 and

II.10. Table 2.4 compares the two 1965 estimates. Both these estimates were

derived from estimates of production by sector and,as would be expected,

give broadly similar estimates. The major differences lie in estimates of

value added in the service sector. From the brief expositions given it

appears that for government expenditure, Marabelli made a more complete

breakdown of expenditure by state than did Lim who apportioned a large

proportion in direct relation to population. Both distributed other services

generally in proportion to value added in other sectors. Because of the data

base on which these estimates have been constructed, they should be treated

with caution, but they do give an indication of the variation between states.

Kelantan and Trengganu stand out as having levels of per capita GDP well below

the national average, and being heavily dependent upon primazy production

1/ "A tentative breakdown of West Malaysian's Gross Domestic Product by States for the Year 1965" Unpublished Mimeo, Economic Planning Unit, Feb. 1968.

2/ Lim Lin Lean, "Income Differentials in Malaysia" University of Malaya, Kuala Lumpur. 1971. (Limited Distribution.) Table 2.4: WEST MALAYSIA - GROSS DOM]iTIC PRODUCT PER CAPITA BY STAT%:, 1965. COMPARISON OF MARABELLI ANTD LIM4 ESTIMATES

Marabelli Estimate Lim Estimate GDP per Percent of GDP per Percent of Capita National Capita National State (M$) Average (M$) Average

Johore 784 . 92 782 92 Kedah 500 58 550 65 Kelantan 347 41. 417 49 Malacca 593 69 650 77 Negri Sembilan 918 107 917 108 Pahang 987 115 984 116 Penang 809 95 817 96 Perak 853 100 863 102 Perlis 1492 57 588 69 Selangor 1558 182 1410 166 Trengganu 555 65 5214 62

Total 856 100 848 100

Table 2.5: WEST MALAYSIA - GROSS DOMESTIC PRODUCT PER CAPITA BY STATE, 1968

Lim Estimate Adjusted Estimate Dollars Percent Dollars Estimate per of per Percent of State Capita Average Canita Average

Johore 766 88 8141 91 Kedah 656 75 686 74 Kelantan 420 48 1451 49 Malacca 580 66 639 69 Negri Sembilan 9314 107 1069 116 Pahang 1091 125 1025 111 Penang 777 89 806 87 Perak 8314 95 934 101 Perlis 555 64 584 63 Selangor 1537 176 11480 161 Trengganu 580 66 594 64

Total 8714 100 922 100 - 12 -

(around 50 percent of the total)and largely in low productivity activities

(see Tables II.8 and II.9). Per capita GDP in Pahang was however above the national average, mainly as a result of having its primary activity in

higher productivity areas, i.e. mining, forestry and rubber, compared to

rice,.coconuts, fishing and miscellaneous activities in the other states.

Some discrepancies may occur in per capita estimates of value

added etc., because of errors in population estimates. Based on the 1970

census figures, we have prepared new estimates of state populations and

these have been used in Table 2.5 to adjust Lim's estimates of per capita

gross domestic product. As expected this results in a reduction of the

figures for the most raoidly expanding states (in terms of population) e.g.

Pahang and Selangor and an increase for slower growing states e.g. Perak

and Negri Sembilan. The.re is thus some reduction in the spread among states.

Some information on individual sectors can 'be extracted from other

sources. The 1968 Census of Manufacturing reports value added by state in

manufacturing and numbers employed whether full or part-time, paid or unpaid.

Table 2.6: WEST MALAYSIA - VALUE ADDED AND WAGES AND SALARIES PAID PER WORKER BY STATE, 1968

Percent of Value Wages & Adjusted vaueu National State Added Salaries Labor Force Added Average

Johore 5082 1852 23257 4;670 74 Kedah )4061 1752 6219 3105 49 Kelantan 4093 1313 3822 3339 53 Malacca 5935 1845 3964 4h72 71 Negri Sembilan 14262 2776 5466 12271(5222)* 194(82) Pahang 5834 270L4 L250 4899 77 Penang 5594 1899 17033 4724 75 Perak 5472 1783 20539 L4638 73 Perlis 3917 1748 390 2913 46 Selangor 9536 2673 51150 8730 138 Trengganu 3010 1939 1776 2337 37

Total 7233 2210 137869 6338 * Omitting oil refineries -13-

Table 2.6 has been prepared by adjusting the labor force figure assuming

two part-time workers equivalent to one full-timeY./(Column 1.) The value

added per adjusted worker has then been computed. The states then fall

clearly into three groups, Selangor with a capital intensive high productivity

manufacturing sector, the four.predominantly Malay states of Kedah, Perlis,

Kelantan and Trengganu, with a large number of small businesses and low

value added per worker, and the remaining west coast states with value added

figures of about $4500 - $5000 per worker. The composition of manufacturing

will be discussed further at a later stage.

A census of distribution was carried out in 1966 which reports

turnover by establishments in catering, retailing and wholesaling activities,

by region. Per capita levels of turnover have been estimated. Details are

given in Annex Table II. Regional values as a perc.ent of the national

average are given in Table 2.7. Colunn 1 of this table gives comparable

percentages of national GDP per capita for these regions from Lim's estimates

for 1966. For catering and retailing,there is a fairly close similarity

between the proportions and that for the GDP estimate. as might be expected,

providing support to the broad estimate of regional income levels. The

wholesaling figures are markedly different-however,and reflect the concentration

of wholesaling activities in Kuala Lumpur and Penang, and to a lesser extent

Malacca. The low level of w.holesaling activity in the east is strikingJy.

apparent, indicating the peripheral, hinterl.and nature of the area's economy.

1/ The Census of Manufacturing records a total of 116,00O people engaged on a full-time or part-time basis in manufacturing in 1968. This compares with 210,000 estimated by MSSH in 1967-68. The source of this discrepancy is probably partly a problem of sampling (under enumeration by the census and over-enumeration by MSSH)and a problem of definition. That is,some people surveyed by MSSH might describe themselves in such a way that they are classified as manufacturing i.e. tailors, furniture makers, but such operations are not likely to be including in the manufacturing census if they combine small-scale manufactuaring and retailing. - 14 -

Table 2.7: WEST MALAYSIA - PER CAPITA GROSS DOMESTIC PRODUCT AND TURNOVER IN DISTRIBUTION AS PERCENFTAGE OF flATIONIAL AVERAGE BY REGION, 1966

Gross Catering Retailing Wholesale Damestic Trmnover Turnover Turnover Region Product % -- ,

South 90.6 90.6 113.9 81.2 Central 153.9 161.2 134.8 169.2 North-Central 1o6.5 112.h. 103.4 93.1 North 70.8 61.14 76.0 105.3 East 69.14 62.8 614.8 30.8

Total 100.0 100.0 100.0 100.0

Note:

Southern Region Johore and Malacca Central Region = Negri Sembilan and Selangor North-Central Region Perak Northern Region - Penang, Kedah, Perlis Eastern Region Kelantan, Trengganu and Pahang

In 1967 the Ministry of Agriculture carried out a survey of padi

farmers in the Kemuba scheme area of Kelantan. This reported a total net

income of about $65C per farm, including the value of rice produced and

consumed on the farm but excluding other home produced food products, i.e,

vegetables and poulti7f, estimated to amount to $250 to $300 per year. This

was compared with results from a similar survey in Province Wellesley, in

an area practicising double cropping of padi (see Table 2.8). - 15 -

Table 2.8: COMPARISON OF AVERAGE NET ANNUAL INCOMES OF PADI FA1E ITN THREE PADI GROWING AREAS

Total Average Off-Farm Net Income Farm income income

Area Year $ % $ % $ 10

KKemubu (Kelantan) 1967 647 100 361 56 286 LL Province Wellesley 1967 1314 1CO 1011 77 303 23 Besut (Trengganu) 1971 1030 100 513 50 517 50

This shows incomes in the west coast state being double those

in Kemubu, the difference being almost entirely because of differences in

farm income. However there was a particularly poor rice crop in Kelantan

in 1S67 because of flooding and a better comparison may be that for the

Besut area of,Trengganu, where in 1971 average net farm incomes of just over

$1000 were reported. However income from the farm was only reported as $500

or half the total. Farm size was 3 acres in Kelantan (2.2 padi), 6.8 acres

in Trengganu (3.2 padi) and 3.3 acres of padi in Province Wellesley. Pro-

duction of tobacco has also increased steadily in Kelantan, from about

2,750 acres in 1968 to 9,500 acres in 1972. Each farmer usually plants 1 or

2 plots of 1,000 plants which each can provide an income of rnarly $150. As

a result,average income of Kemubu area farmers may now be closer to $1,000.

The study of the Besut area also reports that about one-third of farmers had

plots of rubber averaging 4.4 acres, about 60 percent of which was immature..

No allowance was made for the value of the time devoted to establishment and

care of this immature rubber, but it might roughly be assessed at $120 per

acre per year or about $100 per farmer. Figures were not given in the

Kemubu study on this,bt the Kelantan State Government reports that consider-

able areas (L4-5000 acres per year) are being opened up by smallholders, - 16 - mary of whom presumably are also padi producers. Thus there is possibly some understatement of real incomes.

Some comparison with incomes of other smallholders is provided by a study of rubber growers in Johore. Farm and off-farm income reported is indicated in Table 2.9 with the sample divided by race. Incomes are clearly higher than in Kelantan and Trengganu although Malays have considerably lower incomes than Chinese, mainly resulting from differences in holding size -- the Malay average being 8.2 acres, compared to 17.4 for the Chinese and 9.9 overall. NJear-ly 25 percent of the rubber acreage was izature and no income has been imputed to this.

Thus it is clear that productivity and incomes in Kelantan and

Trenigganu are substantially below those in the rest of the country appearing to be about 60 percent of the national avrerage or less.

Table 2.9: NET ANNUAL INCOME OF RUBBER FARM HOUSEHOLDS IN WET JOP,ORE BY RACE, 1971

Total Annual Off-Farm Income Farm Income Income Race $ % $ % $ %

Malay 1550 100 905 58 6h5 42

Chinese 2796 100 1689 60 1107 4O

Total 1771 100 1044 59 727 41 - 17 -

2.4 Housing census of housing. included a full 1970 Malaysian Census The and including Kelantan states are now complete, Tabulations for most For are not yet to hand.) futures for Pahang (Unfortunately, a Trengganu. been converted to data obtained have purposes the numerical comparative of the characteristics II.12 - give details basis. Annex tables percentage and the whole of Malacca, Selangor for Kelantan, Trengganu, of housing units

West Malaysia. quarters units are in privatce majority of housing The overwhelming refer to remaining tabulations Table II.12. The farn.ly units, see i.e. over 90 percent of These comprise just living quarters. occupied private selected, Among the four states see T-able 2.10. living quarters, al:l private for this apparently the same. The reason if approximately this occupancy rate at present. level is not known low detailed in the Annex of the occupied quarters, The characteristics family the country multiple in Table 2.10. Throughout tables, are summarized (i.e. detached) In fact single family minority of units. form only a small units 88 percent in Trengganu of the total in Kelantan, comprise 86 percent dwellings terraced types are semi-detached and Mialacca. In Selangor and 69 percent in This 47 percent of the total. dwellings are only more cormmon and detached as not however be taken dwellings should of single family high proportion apparent. - as will become indication of quality to be in an appears in general the east coast states housing stock in o The the fact that about as a whole despite than in the country a less sound condition to the national years old, compared are less than 10 half of the units - 18 -

proportion of 44 percent. This is almost certainly a reflection of

construction materials. Only just over three percent of dwellings in

Kelantan and Trengganu have walls of brick or concrete, compared to 20

percent in Malacca and almost one-third in Selangor. Conversely the

proportions with walls of attap, bamboo, corrugated iron or other temporary

materials are 32 percent 'inKelantan, 15 percent in Trengganu, 1 percent in Malacca and 2+s percent in Selangor.

It is in amenities that the sharpest distinction between standards

in the east coast states and the rest of the country is most apparent. Only states about 10 percent of dwellings in the east coast/have exclusive piped water

supply, compared to 42 percent in Malacca and 54 percent in Selangor.

An additional 3 percent having access to a shared supply, compared to 8

and 16 percent respectively in the other two states. Similarly separate bathing facilities within the house are available in only about 14 percent of Kelantan and Trengganu dwellings compared to 57 percent in Malacca and

73 percent in Selangor, while over 60 percent of dwellings in Kelantan and

Trengganu have no toilet facilities, compared to only 20 percent in the country as a whole. Lighting facilities reported illustrate the generally lower living standards in the east. Less than 20 percent of dwellings have electric light compared to the national average of almost 44 percent, but also of the remainder,only about 7 percent have pressure lamps compared to just over 20 percent nationally, the remainder using oil lamps. A sin41iar picture emerges in motor vehicle ownership. Crowding (in terms of persons per room) appears to be only slightly higher in the east coast states than elsewhere despite the lower number of rooms per dwelling. This is in part a reflection frequently of the high proportion of Malays who live more/in nuclear family units compared to Chinese who often have larger household groups. -19-

Malacca was chosen for comparative purposes because it is a relatively low income (75 percent of national average) and non-urban

(75 percent) state. However it is clear that its overall housing standards are considerably higher than in Kelantan and Trengganu and approaching those in Selangor, even though the latter state has a considerably higher level of income. -20- Table 2.10: WEST MALAYSIA (SELECTED STATES) PROPORTION OF OCCUPIED PRIVATE LIVING QUARTERS HAVING SELECrED CHARACTERISTICS

Characteristics Total Kelantan Trengganu Malacca Selangor W. Malaysia 1. Total private living 91.9 89.4 90.6 90.5 quarters occupied 90.4 2. Type house/bungalow 92.8 93.3 85.6 73.5 n.a. flat/room 4.5 4.5 7.3 other 14.6 n.a. 2.7 2.2 7.1 11.9 n.a. 3. Condition - Sound . . .62.9 62.7 75*7 80.2 73.3 4. Age - less than 10 years 49.2 53.0 37.3 45.6 43.7 5. Construction of walls: Brick/concrete 3.4 3.3 19.7 Plank 32.4 16.7 64.8 82.0 79.5 Attap 55.2 74.6 and other 31.8 14.7 0.8 2.4 6. Cooking facilities 8.7 Separate . 95.6 91.6 93.9 91.6 7. Water supply 92.4 (a) exclusive 43.3 39.0 62.0 71.7 of which - piped 60.0 10.5 8.2 41,6 53.8 35.4 - well or pump 32.6 30.2 20.1 (b) shared 15.1 22.6 56.7 61.0 38.0 28.3 of which - piped 40.0 2.9 3.4 8.0 16.4 - well or pump 12.4 46.3 48.0 2Q.0 7.8 20.5 8. Bathing facilities 14.5 13.7 57.3 separate 73.5 52.0 9. Toilet facilities - exclusive 20.0 20.3 61.0 - 70.5 53.6 shared 19.2 13.5 23.6 - none 24.3 26.4 60.8 66.2 15.4 5.2 20.0 10. Lighting electric 18,.5 19.9 52.6 - 61.2 43.7 oressure lamp 4.4 5.5 14.6 - oil lamp 12.9 9.6 76.6 74.0 32.6 25.7 46.5 11. Average no. of rooms 1.79 1.59 2.48 2.64 2.28 12. Average persons per room 2.76 3.16 2.63 2.490 2.65 13. Transport - motor cycles 3.5 6.9 12.7 18.2 Other motor vehicles 13.7 3.5 3.6 9.9 17.5 9.3 - 21 -

2.5 Health

Health service standards in Malaysia are generally considered to be high and facilities extensive. Overall there are a total of 33,178 hospital beds in West Malaysia, or 368 per 1,000 population (See Annex

Table II27). Of these some 10,000 beds are in special institutions, principally for leprosy or mental patients, giving an average of general beds of 255 per thousand. There is a considerable variation in number of beds per capita as between states (as shown in Table II.27) from 518 per in Negri Sembilan to 131 ner 100,000 100,000/in Kelantan. The two states of Kelantan and Trengganu rank well below the rest of the country in this regard with only 131 and 1hh beds per

100,000 respectively. This is partly because of the virtual absence of any beds outside of government hospitals. Nationally 24 percent of beds are in estate or mine hospitals and private nursing ceniters. Details on the dis- tribution of government hospital beds are given in Tables II.28 and II.29.

This indicates that in Kelantan there are below average numbers of beds for general medical treatment and for treatment of diseases and conditions, e.g. , diseases of chest, infectious diseases etc. In Trengganu the level of provision is at about the national average. In terms of beds for more specialized-purposes however both states have a low level of orovision. Thus for there are 22 beds per 100,000 in Kelantan, and 11.5 in Trengganu compared to the national average of 43.3, and for and the comparative figures are 13.5, 17.3 and 29.9 respectively. Given the relative isolation of these states it is obviously difficult and expensive to move patients for these specialized services to other centers. It should - 22 - be noted that the third east coast state, Pahang, is at or above the national average in terms of provision of beds of all types.

In addition to the hospitals discussed above West Malaysia has an extensive network of health centers, midwife clinics and dispensaries.

Details of the distribution of these are given in Tables II.30 and I1.31.

There are again fairly wide differences among states in provision of these facilities, in part reflecting local conditions. Pahang is above average throughout in coverage relative to population, while levels of provision in

Kelantan and Trengganu are generally close to national average, or above. - 23 -

2.6 Transportation

The major transportation network in West Malaysia developed along the vest coast together with the development of the tin mines and plantation agriculture. The initial development was around the trading ports of Penang and Malacca followed by the tin mining centers of Taiping,

Ipoh and Kuala Lumpur. Plantation development followed mainly because of the relative accessibility of the area. Early rail lines were built in the individual lines 1880's and 1890's to link tin mines to ports. These were gradually linked up and by 1911 the main railway line had been completed between Prai (adjacent to Penang) and Johore Bahru (adjacent to Island). In the next decade a start was made in the east with some construction in Kelantan, and the construction of a branch from the main line at in North Johore, north through West Pahang to , and this was completed to Kota

Bharu by 1930. No additional lines have been built since then and Kota

Bharu remains the only port on the east coast with rail service. Also, as local people are quick to point out, Trengganu is the only state with no rail access. N

Road development was similarly slow on the east coast. The first road linking the east coast at Kuantan to the west was completed by 1920 but further development was slow. An all weather road between Kota Bahru and

Kuala Trengganu was completed in 1932, but the Kuala Trengganu-Kuantan link was not finally completed until after liorld War II, to provide a road link between Kelantan and Trengganu and the rest of the country. The road density in the country in 1950 is shown in Figure II.1, which indicates for each point the number of miles of road in the surrounding 210 square mile hexagon.1' Thus at that time the densest network on the east coast was immediately around Kota Bharu, which comprised about one mile of road per

316 square miles. Such a density occured widely on the west coast including almost the entire states of Penang, Selangor, Malacca and South Kedah, and West

Negri Sembilan and the area around Ipoh in Perak. The rest of the east coast states had a very scanty road network with south-east Pahang and the interior areas of Kelantan, Trengganu and North Pahang with no roads at all. Figures

II.2 and II.3 show the subsequent development of the road network in 1958 and 1968. While the west coast had a relatively dense network by 1968 throughout the length of the country, except in some unutilized mainly swamlyareas, the network in the east coast states remains rudimentary, with isolated areas of higher density around centers of development at

Kota Bharu, Kuala Trengganu, Keinmaman, Kuantan, and Raub. The diffusion of the road network is shown in Figure II.4 which indicates the period at which an area was first recorded as having a road. As is clear, for most of the east coast states such access has only been a product of the last two decades. In fact if 1 mile of road per 10 square miles is taken as a measure of a reasonable but rudimentary ne,,work (approximately equally to the 1120?! countour line on the map) it is clear from Figure II.3 that this out is non-existent through/most of the east coast states while it is available virtually throughout the area west of the mountain range.

1/ Source: Leinbach, T.R. "Transportation and Modernization in Malaya", Unpublished Ph.D. Thesis Pennsylvania State University, September 1971. As a result of the lack of road and rail facilities, access to national market for producers in the east coast states has been restricted.

An attempt has been made to measure the relative disadvantage of the east coast states, by computing the cost of serving the national market from 38 alternative locations throughout the country. Using Lim's estimate of GDP per state in 1968 as an estimate of the size of the market in each state the weighted cost of serving each state market from each of the 38 points has been calculated. Summing the costs of serving the different state markets from a given point, gives a weighted cost figure for that point

representing the cost of serving the national market. These weighted costs

are presented in Table 2.32 where five separate estimates are shown:

A. For a market area comprising the States-of West Malaysia with the

current highway system.

B. For a market area as above plus Singapore.

C. For a market area as in B, assuming completion of the East-West

Highway. D. For a market area as in D plus Singapore. E. For a market area as in D assuming that in addition production in

S.E. Pahang is at a level equivalent to that which is planned for the area

in 1980.

For estimate A, the current Malaysian market and transport situation,

the least cost location, as might be expected is Kuala Lumpur, since it is

centrally located and constitutes itself the largest single component of the

national market. For ease of exposition, the estimates in Table II.32 have

been converted into an index, with a minimum value of 100. This is given in i- 26 -

Table II.33. The indexes for estimate A have been mapped in Figure II.5.

The effect of the relative isolation of the east coast is clearly apparent.

It would cost approximately three times as much to serve the national market from Kota Bharu as from Kuala Lumpur, or two times as much from

Kuala Trengganu as from Ipoh.

These estimates are somewhat unrealistic in that they do not take

external effects into account. Thus where raw materials have to be imported,

the major port areas will have an additional advantage. Since also, in many

respects Malaysia and Singapore may be viewed as one market, the exercise

was repeated including Singapore. The resulting index 'B' is mapped in

Figure II.6. The addition of this major market at the southern end of the

peninsula moves the least cost point from Kuala Lumpur, south to Malacca,

improving the relative position of that state and Johore, compared to more

northerly states. The relative disadvantage of the east coast states is

also reduced marginally -- Alor Star is as distant from Singapore as Kota

Bharu.

The major current highway project, which will have a clear impact

on the east coast states is that linking Grik in Upper Perak to Jeli in

Kelantan. Estimate C assumes this link is in existence. As can be seen in

Figure II.7 this has a marked effect in reducing the relative isolation of

Kelantan in particular from the national market. Table II.34 shows, for

each place taken, the ratio between estimates C and A, i.e. the estimated

proportionate cost after the highway is complete compared to the prior

situation. Thus it is estimated that the highway wi]]. reduce the cost of

serving the national market by 30 percent for Kota Bharu, 17 percent for

Kuala Trengganu, from 8-9 percent in Kedah and Penang and Northern Perak - 27 - and marginally in South Perak and Selangor. Even with this highway it will still be more than twice as costly to serve the 'West Malaysian market

(without Singapore) from Kota Bharu as from Kuala Lumpur.

Given the lower level of incomes, the recent and low density nature of the road network and the relative isolation of the area it might be expected that ownership of motor vehicles would be markedly lower than in the rest of the country. Details of registrations of vehicles by State are given in Table II.35, and expressed in per capita terms in Table II.36.

Nationally there were 6,200 buses registered or 0.69 per 1,000 persons. Generally numbers in the west-coast states were at this level or higher while in Pahang the level was about the national average, but markedly lower in Kelantan and Trengganu, 0.29 and 0.35 per 1,000 respectively. The picture with respect to taxis is somewhat diffarent, but the east coast states are all well below the national average.

The numbers of lorries and vans may be expected to reflect the level and type of economic activity. The national average of 6.45 vehicles per 1,000 persons was exceeded in Johore, Negri Sembilan, Selangor and Penang.

(It should be noted that the Selangor figure may be inflated since most

goverrnent vehicles - 9,000 in all - are regisi&ered there.) In Pahang the number of commercial vehicles is relatively high, 5 per 1 ,000 persons, probably containing a significant proportion of timber trucks. In Kelantan

and Trengganu, however numbers are very low, less than 40 percent of the

national average.

As noted earlier, numbers of other motor vehicles are also very

low in the east coast states, being about one third of the national per - 28 - capita average for cars in Kelantan and Trengganu, and two-thirds in

Pahang, and 50 percent and 80 percent respectively of the average for motor cycles and scooters.

Thus the surface transportation system in the east coast states comnares unfavorably with that of the rest of the country. In the west coast states, as well as the north-south railway, there is a relatively dense network of roads with an extensive fleet of buses and taxis providing public passenger service on them. Ninety percent of the country's commercial and other vehicles are located in this area. This mobility has enabled an integrated economy to develop. -However on the east coast roads are sparse and vehicles relatively few. Thus the mobility of people and the ease of movement of goods is reduced. This, allied to the re'ative isolation of much of the area has contributed.significantly to the peripheral nature of the region's economy.

This relative isolation has in part been reduced by the development of air services. Kota Bharui, Kuala

Trengganu and Kuantan are linked to Kuala Lumpur by daily services, and there are also services from Kota Bharu to Penang. The effect to this air accessi- bil.ity on travel times from Kuala Lumpur is shown in Figure II.9. This, however does not reduce the cost.and time factors in transporting goods from the north east coast to major markets, or also the high cost of passenger travel to and from the area. It should be noted also that in 1970 passenger travel was heavily concentrated in the main Penang-Kuala Lumpur - Singapore corridor. - 29 -

Existing port facilities on the east coast' are small and subject

to repeated silting because of the north-east monsoons. Tanjong Gelang,

about 10 mi-les north of Kuantan, has been identified as the most promising potential port site,,and a feasibility study is currently being carried out.

It is hoped that a port can be made operational at the site by 1975-76. - 30 -

2.7 Private Services

Banking Facilities

Malaysia had, at the end of 1971, 343 banking offices equivalent approximately to one per 33,000 people (See Table II.37). As would be expected the highest concentration of these is in the major cormmercial states of Selangor and Penang which had 90 and 38 offices respectively. in Coverage is much more sparse in the east coast states with 9 offices

Kelantan (1 per 84i,000 persons) and 8 in Trengganu, (1 per 53,000 persons).

In Pahang, however, reflecting the greater level of commercial activity, there are 19 offices (1 per 25,000 persons).

The distribution of bank deposits by state is shown in Tables II38 in and II.39. As might be expected these deposits are heavily concentrated the major commercial centers. Per capita deposits range. from $78 in Kelantan and $84 in Trengganu to $450 in Penang and $1,014 in Selangor. However over the four years (1968-71) for which figures are given in Table II.34, the

greatest increase in per capita deposits (50 percent) has been in Trengganu,

compared to the national average of 34 percent. The increase in Kelantan

(38.5 percent) was also abo-ve average. However total deposits in these two

states still represent only 2.7 percent of the national total. The spread the of banking offices is shown in Figures 11.10 and II.11. These indicate the continuing heavy preponderance of activity in the west coast states, and

sparse nature of the banking system on the east coast.

A number of other financial agencies exist in the country, including the end a number classified as borrowing comoanies. These had 168 offices at

of 1971, 6 of which were in Pahang, but none in Kelantan or Trengganu (See

Table II.40). -31-

in West. Malaysia in the Post At thie end of 1971 total deposits just over $21 $280 million an increase of Office Savings Bank totalled broken figures on deposits are not from the previous year. Unfortunately and withdrawals however available on deposits down by State.. Figures-'are deposits in Table II.41 for 1971. Gross by State, and these are detailed per capita GDP. in line with variations in per capita by state are roughly expected, Pahax.g have levels higher than Trengganu and >to a lesser extent, use of this rate of development and the perhaps reflecting their current construction. workers e.g. in forestry and means of saving by temporary which generally in per capita net deposits This is emphasized by variations e.g. Pahang, Selangor rates of population growth are high in states with high and Perak. in Kedah, Kelantan, Penang and Trengganu and vice versa - 32 -

3. Economic Acti'vity 3.1 Agricul:tu Section 2.2 indicated the preponderance of agricultural activities as sources of employmnt in the east coast states. Sixty one percent of those surveyed in ISSH indicated that agriculture, forestry or fishing was their main occupation, and of these,24 percent were in agricultural products re- quiring substantial processing, principally rubber. The remainder were principal21 in rice production.

Table 3.1: EAST COAST STATES. AGRICULTURE' S CONTRIBUTION TO GDP BY STATE AND YEAR

STATE ESTjMATE Marabeli - Lim 1965((a) 1965(a) 1965(b) 1968(b)

Kelantan 50.6 42.l 4O.6 35.2 Trengganu 4o.3 3L4.2 31.5 34.6 Pahang 40.7 36.4 28.1 24.1 Region h3.3 37.7 32.8 29.7

(a) Including forestry (b) Excluding forestry

Table 3.1 contains estimates of the contribution of agriculture to

GDP in the three states. The difference in the Marabelli and Lim estimates for 1965 appears to arise from the different estimation procedure discussed in Section 2.3. These estimates suggest that agriculture and forestry together contributed about [0 percent of GDP in 1965. WJhen forestry is omitted this is reduced to about one-third. Lim's estimates suggest that this proportion - 33 -

be fell by about 3 percentage points between 1965 and 1968. As will factors. discussed, this may have been largely the result of temporary

Rubber

In the three states the total area reported under rubber was Of this .890,O0O acres (approximately 20.6 percent of the national total). holdings (i.e. 173,000 acres were in estates and the remaining area in small from annual units of less than 100 acres). Figures for estates are derived for small- returns made by the operators and are therefore reliable. Those correction from holdings are estimates by local field workers with some

aerial photographs and are thus subject to some error.

Kelantan

Details of acreage and production are given in Tables 3.2 and

Annex Table III.l.

Table 3.2: KELANTAN RUBBER ACREAGE BY TYPE, SMMECTED YEARS

Year Estates Smallholdings Total

1963 45,300 102,300 147,600 1966 44,50o 118,900 163,h00

1970 4o,6o6 199,500 240,106

Over the seven year period from 1963 to 1970 the acreage under replantirng estates has declined by 10 percent, presumably mainly because of has with oil palm. At the same time, the acreage under smallholdings average annual increased by 95 percenti to almost 200,000 acres, implying an increment of about 1i,000 acres. Over the same period of time approximately

30,000 acres of smallholder rubber have been replanted under the'Fund B' schemes (see Table 1I1.1), a rate of about 4,000 acres per year.- Assuming the accurracy of these figures, all of these approximately 150,000 acres(or

75 percent of all.smallholder rubber) are still immature or just co mancing tapping at present.

About 25 percent of the mature estate acreage is over 25 years old and therefore reaching the end of its productive life. Of the remainder,

18,500 acres (or about 75 percent)are below 15 years of age (i.e. at or approaching peak production). An additional 7000 acres are still imnature.

As a result of this new acreage coming into production, estate output expanded by just over 40 percent from 1966-1970, but given the reduced acreages now maturing may be expected to level off at not much above its present level, e.g. about 17.5 thousand tons per year.

Smallholding production rose from 23.5 thousand tons in 1966 to

32.8 thousand tons in 1970. The acreage figures above imply a mature area in 1970 of about 50,000 acres and this output would imply a yield of about

1400 lbs per acre. Since the average smallholder yield nationally is estimated at about 700 lb per acre, an average yield of 1400lb appears highly 2/ unlikely.- Since smallholder output is based on recorded returns of purchases

1/ In addition smallholders may have replanted considerable areas outside official schemes. Experience elsewhere suggests that this may be as large as that under Fund B schemes.

2/ Especially since the heavier monsoon experienced in the east coas-t states results in fewer available tapping days than elsewhere either because of interference by rain or effects of flooding. by licensed rubber dealers these figures may be assumed to be reasonably reliable. Thus it is probable that either the acreage of rubber existing in earlier years has been understated, thus underestimating current mature acreage, or that rubber is being brought into Kelantan from Thailand and sold through Malaysian channels. This is an issue which should be pursued in any study of the State economy since in Lim's estimates, rubber accounts for about 12 percent of GDP and an error of this magnitude could mean an overestimate of about 5 percent in State GDP. On the basis of the above acreage figures the mature acreage may be expected to expand to about 130,000 acres in 1975 and to 200,000 acres in 1980, with resulting outputs of about 4O,000 and 70,000 tons, depending of course on price levels. Trengganu Table 3.3:. TENGGANIJ RUBBIR ACREAGE BY TYPEE SELECTIED YEARIS

Year Zstates Smallholdings Total FLDA Other

1963 17,300 ,1o00 70,700 92,100 1966 13,300 6,606 83,394 103,300 1970 15,470 9,730 123,300 148,45o

The estate sector is relatively insignificant in the state. 8300

acres of the 13,700 mature acres are over 25 years old (see Table III.2) and must be expected to be phased out in the near future, probably to make way for oil palms. Current reported production is about 3.h million pounds and given ihe low level of replanting in recent years must be expected to decline slowly from this level. -36-

Total smallholder acreage il 1970 was 133,000 with almost 10,000 acres under FLDA schemes. Reported figmres suggest smallholder plantings to have amounted to about 52,000 acres over the past 7 years, plus about

15,000 acres replanted under Fund B schemes. Additional acres may have been replanted independently, as in Kelantan. A recent survey of padi farmers in

the showed that on average they had 1.6 acres of rubber per farm (36% of farmers had rubber with an average of 4h4 acres per individual).

About two-thirds of this acreage was immature, with some cleared but not planted, and about half was carried out independently of any government schemes.

The mature acreage in 1970 may thus have been about 55,000 acres. 1970 production was reported as 15,000 tons, implying a yield of about 600 lbs per acre which appears reasonable. Given the above rate of planting the mature acreage may rise to 8$,000 acres in 1975 and 120,000 acres by 1980 with 'oossible outputs of 25,000 tons in 1975 and 40,000 tons in 1980.

Pahang

Table 3.4: PAHANG RUBB3 ACREAGE BY TYPE,SELECTED YEARS

Year Estates Smallholdings Total FIDA OthMrs

1963 117,800 8,200 208,300 334,300

1966 120,600 19,4W7 230,053 370,100

1970 117,131 34,486 340,754 502,371

The estate rubber acreage in Pahang has been fairly extensive

for some years, but has remained at about 117,000 acres, mainaly con-

centrated in the western districts of , Raub, and Lipis. About - 37 -

45 percent of the mature acreage in 1970 was over 25 years of age (see

Table III.3). During the latter half of the 1 60's plantings averaged

about 3,000 acres per year. It may be reasonable to expect some decline

in total estate acreage over the next decade, with a modest inecease in

total production since nearly half the mature acreage is less than 15 years old.

Smallholder acreages have increased dramatically,especially since

1966. At the end of 1970 FLDA had 34,500 acres in the state and in addition

there were about 340,000 acres in individual holdings, a net increase of

110,000 acres in the latter category since 1966 or 27,000 acres per year.

This latter figure appears extraordinarily high, compared with the implied

rate of 10,000 acres per year between 1963 and 1966. During the 1961-70

decade some 45,000 acres were also replanted under 'Fund B' Schemes. Assuming

some additional replanting efforts the mature smallholder acreage may have been about 160,000 acres in 1970, which is reasonably in line with the pro- duction estimate of 50,000 tons. It is interesting to note that the States reported output rose from 48,000 tons in 1969 at this time of falling prices - contrary to the national trend, implying a rapid increase in tappable acreage.

This may be expected to increase to perhaps 220,000 acres by 1975 and 300,000 acres plus by 1980 with possible outputs of 70,000 and 100,000 tons respectively.

Oil Palm

The,oil palm industry has expanded rapidly in Malaysia since 1960.

Tnitial development was concentrated in existing estate areas of the west coast. Subsequently considerable new areas have been opened up principally in Pahang, Trengganu and Johore. This section will review the existing situation, future plans of major agencies will be reviewed in Chapter IV. - 38 -

Kelantan

Current information is summarized in Table III.4. At the present

time the crop is a relatively minor activity in the state, the bulk of the

10,600 acres being in the Gua Musang area in the south of tbe state. Intended

1971 plantings .were only 1,250 and no major expansion.by existing estates appears imminent.

Trengganu

Extensive development of the crop has taken place in the period since 1965, and 47,500 acres had been planted to the crop by 1970, only 17,700 of which were mature at that time. The State Economic Development

Corporation has a 20,000 acre scheme at oungei Tong, between Kuala Trengganu and Besut. Other major developments have been a 12,000 acre FLDA scheme at

Jerangau, and a 30,000 acre joint venture scheme being developed in D)ngun district. The Statistics Department estimate of production in 1970 was 3,411 tons of fresh fruit bunches from 1,675 mature acres, but given the figures for mature acreage quoted in Table III.5 and the fact that the FLDA scheme has been in operation for some years, this figure seems unrealistically low. Given the age of the crop about 2-3 tons f.f.b/acre or 45,000 tons might be more appropriate, yielding about 9,000 tonls of oil. Pahang

Major plantings have been made in the state (see Table III.6), the largest being in FLDA's Jengka Triangle schemes. As of 1970, there were some

136,000 acres in the State of which only 18,500 acres were reported as mature.

FLDA operated 86,600 acres in that year. Intended plantings in 1971 were almost 21,000 acres for private estates and FLDA alone, i.e. excluding State

Government schemes. Palm oil production in the State in 1970 was reported as - 39 -

9,7(X tns, bmt vIth the large acreage now ccuin into prodmction, trifs is increasing ranidly.

Ccoconuts

This is entirely a smallhoider crop an the east coast states. A

total or 833,00 acres vere reported in the tree' states in 1970 or 17.5 percent

of the national total - excluding 1C0,00C acres 3n estates in the iest coast

states. 1x3aiLSi of acreage in recent years has been negrliile (see Table

flI7). A sur7ey carried out 3n the major coconat sIlholdirg areas of the

ccrmtry in 1965 indicated that yields in lnan e cer than elseVher

(see Table IlI.). 'This as due to a combinatiion of factors - low density ov yielding pa2s, late maturity of pains, low nmber of nuts per pal2. The national coconut rehabilitation and replanting schem has been operated in

Kelantan. To the end. of 1971, 3,3,89 acres had been rehabilitated and 3,5h1

replanted. Targets for the State in the SIP period are 2,000 acres and 6,00O

acres respectively. Consideration is being given to exterding the sceb to

Trengganu. Given the crop's long maturity period no significant increase in

production is likely in the three states in the next ten years.

Table 3.5: SHALLHOLDER COCONUT ACRU}BY STWE, 1970

State Acres

Kelantan 43,200

Trengganu 22,800

Pahang 17,0

Other States 388,700

Total 471 ,700 l 9 .- ho -

Rice

Some 32 percent of the total main crop padi acreage in West

Malaysia is located in the three east coast states. (See Table III.9.)

However the lack of irrigatii-z. facilities in the area has resulted in a

relatively low off-season crop acreage (12.5 percent of the national total).

Conversely 80 percent of the dry padi acreage is located here.

Kelantan

As indicated in Table III.9 total rice prQduction in the State

almost tripled between 1966-67 and 1969-70. However this mainly represents

a recovery from disastrously low main-season crops in 1966-67 and 1967-68

resulting from heavy monsocn flooding in those years. The total main-crop

acreage has remained around 170,000 acres. A survey in the Kemubu area of

the state indicated an average padi acreage per farm of 2.2 acres, and thus

there are probably about 75,000 families engaged in part in its production,

or almost two-thirds of all households in the State.

The acreage of the off-season crop has expanded from 10,000-26,000

acres between 1966 and 1970, with the introduction of schemes mainly bordering

the between Kota Bharu and Pasir Mas. The Kemubu irrigation

scheme, partly financed by the Bank, is currently being brought into service.

It is planned to crop 24,000 acres in the off-season in 1973 and a further

23,000 acres will be brought into the scheme in the following tuo years. This

will increase the total off-season crop acreage to approximately 70,000 by

1975 increasing this portion of the total crop to about 30 million gantar.gs

(75,000 tons) and the total crop to around 95 million gantangs (240,000 tons)

an increase of about 30 percent above the 1970 level. I------1 -

Trengganu

Some increase in main crop padi acreage has taken place in the State in recent years, from about 55,000 acres in 1966 to 70,000 acres in 1970. At the same time off-season padi acreage has increased from 3,400 to 9,400 acres as 'irrigation facilities mainly in the Kuala Trengganu area came into use.

A 12,000 acre scheme is planned in the Besut area, and with additional smaller schemes elsewhere in the State should bring up the double-cropped acreage to about 30,000 by 1975. This could mean an increase in total output from

70,000 tons in 1970 to 95,000 tons in 1975.

Pahang

Padi-is a relatively less important crop in Pahang than in the other two states with some 54,000 acres of main-crop reported in 1970. Only about 10 percent (5,000 acres) of this area was cropped in the off-season.

No major irrigation schemes were reported as being planned in the State and

therefore only a modest further increase in acreage might be anticipated by 1975.

The agricultural officers contacted in the east coast states in-

dicated that yields in the area were generally lower than on the west coast

for two major reasons. The soils were said to be less suitable partly because

of a proportion of permeable types with a low moisture holding capacity, and

partly because the clay fraction of many soils has a higher proportion of

kaolinite type clays than those on the west coast. These have a lower cation

exchange capacity i.e. lower ability to hold nutrients, when flooded. Thus

the response to given applications of fertilizer is often lower than elsewhere.

This, coupled with the high cost of fertilizer, especially in Kelantan where it

has to bear a `501 per ton transport cost frcm Kuala Dumpur, means that quantities

applied are generally lower than in the major west coast padi areas. :N

- Lh2 -

Other Crops A wide variety of other crops is also grown, mainly on a relatively small scale, the principal of these are shown in Table III.10. Most of these are fairly minor in terms of present or expected future

production, but, some warrant specific mention.

Tobacco Over the past ten years, Kelantan has become the major center of

the Malaysian tobacco growing industry. This development has mainly been

under the stimulus of the Malayan Tobacco Company which established a series

of green leaf buying and curing centers in the State. A number of other

independent producers have also entered the industry. Acreage and production

estimates for the past five years are given in Table 3.6.

The buying stations register green leaf growers who plant the tobacco,

grow it and sell the resulting crop back to the stations. These stations then cure the tobacco, grade it and sell to the manufacturing companies. Each

Table 3.6: TOBACCO ACREAGE AND PRODUCTION IN KELANTAN 1968-1972

Year Acreage Production M.T.C.I/ I.P's.N Total (Thousand lbs Unredried)

1968 n.a. n.a. 2,765 2,963 1969 3,009 l,1Lo l4,149 3,762 1970 3,268 1,518 4,786 3,700 1971 4,534 5,127 9,661 7,900 19°72 4,4L50 5,127 9,577 11,900 3/

1/ Acreage contracted through Malayan Tobacco Company green leaf buying stations. 2/ Acreage contracted by independent producers. 3/ Estimated.

Source: Malayan Tobacco Company -43- grower is normally registered to grow 1 ,000 plants or about 1/7 of an acre.

Sane of the growers register with more than one company and thus grow 2 or more plots. The tobacco company estimate that an average crop might be

9,000 lbs.of green leaf per acre or about 1,300 lbs per plot and at an estimated green leaf price of O.135 cents per pound a gross sales value of

M$ 175 per crop per plot. At the reported current acreage this implies that output is now at around $11 million per year. The Malayan Tobacco Company was somewhat reluctant to talk about future prospects. They feel that total output is at about the level' that the local market can sustain and are a bit concerned that the growing season at present March-August) may be extended by double cropping etc. because of the attractiveness of the crop to the producers, increasing the risk of' disease spread. They are also interested in diver- sifying away to some other part of the country where the crop could be grown in a different period to extend the overall harvesting season. The producers are expressing some dissatisfaction wiA.h variation in leaf prices ( which are basically a function of leaf quality)and there has been some discussion of the need for a statutory board for the industry. There is also a potential conflict, particularly in the Kemubu area between double cropping rice and growing tobacco - the latter being produced in the rice off-season. Some attempt has been made to identify small higher acres, difficult to irri.gate which might be utilized for tobacco - about 5,000 acresbave been suggested.

However there may be problems with the high water table. Therefore it seems likely that,in the near futuwe at least ,the industry in Kelantan will not expand beyond its present level. -L4-

Maize

About 4,000 acres of the 7,600 acres reported in 1970 were grown on the east coast and the Agriculture Department has made some efforts to expand output (without a great deal of success to date )with a view to

supplying the rapidly growing local market for animal feed. In Trengganu

the crop is grown in the January-April period without supplemental irrigation

and the yield is normally about half a ton per acre, with a market value close

to $100. At this yield it is not a particularly attractive proposition. The

Agriculture Department is considering the possibility of providing supplemental

irrigation to river terraces adjacent to the Sungei Trengganu in the Kuala

Brang area to attempt to stimulate production of the crop. Given other and problems, e.g. harvesting /stem borer attack, it is difficult to see any major increase in output. The same applies to sorghum which are to some

degree a substitute crop.

Groundnuts

The main centre of groundnut production has been in Perak, but since

the crop has a fairly high value and is relatively labor intensive efforts

have been made to stimulate production particularly in Kelantan and Trengganu.

Agriculture Department officials report potential yields of 4,000 lbs per

acre with a sale price of about 18 cents per pound)giving a gross return of

$700 per acre. This appears somewhat optimistic. Tapioca

A number of schemes for production of tapioca (cassava) have been proposed in recent years in Malaysia in Johore and elsewhere. Traditionally the industry has been based on smallholder production in Perak. The major east coast efforts have been made in Pahang where. the Agriculture Department has promoted smallholder schemes and MARA has established a starch factory at Kuantan. Considerable difficulties have been faced by the factory. Small- holder outout has 'fluctuated considerably as has root quality. The intention was to base the root price on starch content but it has proved next to impossible to put this across to the smallholders and considerable dissatis- faction has resulted. The Agriculture Dbepartment has also frequently sub- sidized haulage to the factory because of the long hauls involved. Because of these problems MARA has decided to establish its own field production and has obtained 1,200 acres near Kuantan for this purpose. It hopes to meet about 60 percent of the requirements of the factory from this source and

wiill rely on smallholders for the balance. It is planning on the basis of a 12 ton annual yield and a production cost of $1,.50 per pcikul. Consideration

is also being given to moving into chip production.

The Kelantan SEDC is also considering 2 tapioca schemes, one of

3,000 acres for starch production and one of 30,000 aimed at chips or pellets.

These would be joint ventures and some discussions have been held, but as yet

nothing has been agreed.

Cashews

The bulk of Malaysian cashew production(3,700 out of 14,200 acres)is

concentrated on the eastern coastal sands. The Trengganu SEDC plans to plant

1-2,000 acres per year to the crop on the coastal bris soils over the

remainder of the SMP period. Because of the maturit,y period of 6-8 years

_a._*_ _- .. _ __.__._..__._ _ -_-__-_- - 46 -

production from this project will be negligible before 1980.

Livestock

Estimated numbers of livestock in the east coast states in 1966

and 1970 are shown in Table III.10. The region is relatively most important

in the production of buffaloes and cattle. Over 40 percent of both national herds are located there. Table III.11 shows tks

recorded slaughters of cattle and buffaloes in the three states and estimates

the numbers which would have been slaughtered had the share of the states in

slaughterings been the same as in numbers of live a-nimals. As indicated

there was a considerable excess (about 22,000) of potential animals

available for slaughter over those actually slaughtered. Animals are sent for the east coast to markets, in particular in Kuaala Lumpur and Singapore,

and these excess numbers would appear to be a reasonable estimate of the trade for which no official statistics are available. Since the Veterinary Department estimates that there is about a 20 percent underestimate of actual buffalo

and cattle slaughters actual figures could be proportionately higher.

At the estimated levels, the value of cattle at slaughter vould be approximately $5 million, $3 million or so of which is exported, that of, buffaloes $6 million, just over half of which would be exported to the rest of the country. The numbers of cattle in Kelantan declined between 1966 and

1970 by 10,000 and there was also a slight fall in buffalo numbers. The extension of double cropping is expected to result in increased mechanical cultivation and, coupled with the reduction in feed supply, this is likely to mean a continued fall in numbers. The Veterinary Department at its Tanah Merah

Station is experimenting with a series of grasses and is trying to encourage forage - 47 - production by farmers. It is also conducting a small cross-breeding program to improve the local "Kelantan" cattle which are small and slow growing.

However these programs are unlikely to slow the decline in numbers in the short run.

One of the. threpe cattle multiplication. centers. being developed under the SMP is at Kuala Brang, Trengganu. Cattle are being placed from this scheme with small farmers under the "Pawah" scheme.

3.2 Fisheries

While fishing has traditionally been a major economic activity on the east coast, the number of fishermen in the three states declined fairly steadily over the decade to 1970, (see Table III.12) in contrast to an increase in numbers in the country aa a whole. Landings of fish in the three states remained generally in the 35,000 to 40,000 ton' range throughout the

1960-70 decade while national output doubled from about 150,000 tons to

300,000 tons per axmum. Because of the decline in numbers of fishermen, the output per man on the east coast rose somewhat to about 2 tons per annum, but for the whole country the 1970 average was 4.3 tons per man.

The reason for this difference appear to be two-fold. The north- east monsoon season, from November through FebrLary greatly restricts fishing activity during these months. As a result the seasonal variation in output is much greater in these states than on the west coast (see Table III.12).

However numbers of fishermen (accurate data are not available ) migrate to during this the west coast period and thus differences in incomes may be less than. these apparent output differences imply. The Department of National Unity is engaged in a study of these fishermen. - 8 -

The second major reason is the type of equipment used. Table III.13

shows the national reported catch for different types of equipment and tb.f

proportion of the total national numbers of this equipment which is operated

on the east coast (see also Table III.12). 27 percent of all fishermen

operate on the east coast. They utilize 47 percent of all traps and pots and

43 percent of lines, but these are types of equipment yielding relatively low

catches. On the other hand they operate only 10 percent of seine nets and

20 percent of trawls, and none of the bag nets, all of which have a higher

recorded output per unit.

Current efforts to increase output and incomes of east coast fisher- men are primarily being aimed at increasing productivity. Three federal

organizations are involved. The Fisheries DeDartment in the Ministry of

Agriculture is responsible for research and training, operating principally

from its center at Penang. There are currently 80-100 students undertaking

training there, of whom about 60 percent are from the east coast. The

Department has also organized a number of Fishermen's Associations, along the

same lines as Farmer's Associations, through which efforts will be made to

channel funds for improved equipment.

Production activities are now the responsibility of the Fish

Development Board, established in 1971. Its overall program has not yet policy been established, but its current / is to attempt to consolidate fishing

activity at a smaller number of centers, particularly on the east coast where there are a large number of small fishing villages. They are thinking

of concentrating their effort in three or four centers, such as Kota Bharu, - h9 -

Kuala Trengganu, Dungun, and Kuantan. In the next year they will

initiaLte a pilot project in Kuala Trengganu to loan funds to fishenmien

for purchase of trawling equipment. It is anticipated that the fishermen

will make a downpayment of 10 percent and borrow the balance. However

since a 38 ton boat plus equipment costs about M$ 60,000 there could still be problems for many in raising this type of money. The Development Board

is also considering going directly into the cpration of fishing boats with possibly up to 450 boats. However the extent of their effort in this area will depend upon the success of other programs.

The Fish Marketing Board was established by FAMA in November 1971 and like the Development Board is still in the stage of defining its role and organizing its program. It is planning one major scheme on the east coast at

Kuala Trengganu. This marketing complex will comprise an auction hall,-cold rooms including a freezer, office space and also will engage in the provision of boat supplies. It is considered that existing ice manufacturers can adequately meet demands for that product. Additional complexes of this type are planned in Kuantan, Lumut and Kuala Kedah, which will be constructed by the Fisheries Department but subsequently managed by the Marketing Board.

At the present time the Marketing Board is not considering engaging directly in marketing activities itself. Consideration is being given to the establishment of a joint venture enterprise with the various groups at present in the industry to engage in marketing. Current thinking as to the ownership of this enterprise is:

20 percent Fish Marketing Board 10 Fish Development Board 30 " Fishermen 20 " Boat Owners 20 t Dealers Discussions are being held -with these groups but no decisions have yet been made.

The Marketing Board is also establishing a small fish cannery in

Kuala Trengganu as a joint venture with the Trengganu SEDC. At present a small experimental plant is being operated by the Food Technology Institute concentrating on canning local tuna and the new factory, to begin operation next year, will concentrate on the same product -which is available offshore in the , but which has in the past been ignored by local fishermen since there is no local demand for it.

The Kelantan SEDC is planning to operate 10 trawlers and may extend its operations further. It may also consider operating a cannery similar to that in Trengganu. - 51 -

3.3 Forestry

The three east coast states contain the major portion of the forest resources of West Malaysia. As of 1969, 12.8 million of the 21 million acres of forest in West Malaysia (or 60 percent) were in the three states. (See Table III.15.) This figure however understates the current importance of the three states in the forestry industry. In 1970, production of logs in the area was estimated at 3.25 million tons7or 70 percent of the national output of 4.6 million tons. This proportion had risen from

31 percent in 1960. Thus while national output had increased from 1.6 million to 4.6 million tons over the decade, or an annual rate of about 11 percent log output in the east coast states rose from 500 thousand tons to 3.25 million tons ,or at an amazing annual rate of almost 21 percent. The major proportion

of this increased production occured in Pahang, which alone accounted for more than one half of national output in 1970.

Changes in the region reflected those in the industry as a whole.

Over the decade of the 1960's there was a rapid increase both in log production

and of consumption by the local processing industry. The former, however

outstripped the latter, particularly in the first half of the decade (see

Table III.16), when local consumption fell from 77 to 64 percent of production.

This fall however seems to have been arrested in the latter half of the decade.

At the same time, as noted above, there was a major shift of logging activity

to the east coast and particularly Pahang (see Table III.17). In fact between

1960 and 1970 the share of total log production fell for every state except

Pahang, Trengganu and Kelantan. At the same time expansion of processing capacity took place both in existing centers and in log producing states.

Thus by 1970 the bulk of the processing capacity was located in the west

coast states, with logs being transported for considerable distances from

the east coast. However there is evidence that processing capacity is being

shifted in line with log supplies. Table 3.7 shows tha-b in 1970 the

regional location of sawmi)ling capacity was roughly in line with log

production in 1960. However when planned expansions or approvals, recorded

by the Forest Industries Development Project are taken into account, there

is a clear shift away from the traditional producing areas. A similar shift

is taking place in plywood capacity (see Table III.18).

Table II.19 compiled by the Forest Industries Development Project

shows the pattern of the sawnilling industry in 1967. This shows that in

general the larger mills were located in Johore, 3 elangor and Pihang, while

the industries in Penang, Perak and Kelantan -were dominated by small mills.

A major integrated timber complex, i.e. combining sawmilling and

plywood production has been established in the Jengka Triangle area of Pahang.

A number of similar complexes are in various stages of planning elsewhere in

the east coast states, e.g. at Lesong and , in Pahang, Dungun in

Trengganu and in Kelantan. These projects and the general growth and concen-

tration of the industry which will certainly take place will accelerate the

trend towards location of processing in log producing areas. Potential future forestry production will be discussed in Chapter IV. Table 3.7: PERCENT DISTRIBUTION OF 1960 LoG PRODUCTION AND 1970 SAIMILL CAPACITY

1970 Sawnill Capacity 1960 Log Region Production Actual Including Approvals

Johore 24i 17 15

Malacca/N .S./ Selangor 24 30 27

Perak 14 12 10

Penang/Kedah/ Perlis 7 10 8

Pahang 23 21 28

Kelantan/ Trengganu 8 9 11 3.4 Manufacturing Manufacturing activity in the east coast states is a comparatively Table 3.8 the minor element in the national picture. As indicated in just o-ver four value added in manufacturing in the three states in 1968 was establishments percent of the national total, although over 11 percent of all in the states recorded in the 1968 census were there. The types of activities e.g. sawnilling, fall into two main types, basic processing of primary products secondly a range rubber smoking and remilling and rice and coconut mills, and of activities catering mainly to local markets. most The first of these - processing activities - is by far the In importa-nt in money terms, as shown in Table IIIo22. fact,approximately states is derived 57 percent of total manufacturing Value added in the three from samilling alone. previous Forestry and timber processing have been discussed in the output and value section. Table III.23, derived from Table III.22 shows the for the three added in sawmilling reported in the Census of Manufacturing for the country as states and compares the figures for the region with those consists of a whole. As indicated in Section 3.3 the industry in Pahang whole output per relatively large units. As a result in the region as a despite low establishment and per worker are close to the national average, wages per full-time figures in Kelantan and Trengganu. Similarly salaries and in Trengganu and employee were about $1700 per employee in Kelantan, $2000 the industry as $3000 in Pahang, the latter again being above average for a whole. -55-

Table 3.8: EAST COAST STATES - OUTPUT, VALUE AIDED AND .EMPLOYMENT IN MANUFACTURING, 1968

(a) Gross Figures

* Employees No. of Gross Estabish- Value Materials Value Full Part Wages Paid State ments of Sales Purchased Added Time Time ($ '000) ($ '000) 613 4,o96 Kelantan 357 50,647 38,815 12,773 3,120 181 9, 6 4t5 Pahang 403 56,682 36,697 20,812 3,567 2,674 Trengganu 288 11,209 7,606 4,151 1,379 114 266,957 W. Malaysia 9,013 3,078,523 2,25011,297 873,851 120,807 9,h50 908 16,h15 E. Coast 1,048 118,538 83,118 37,736 8,o66

(b) % of National Total 1.53 Kelantan 3.06 1.65 1.69 4.h6 2.58 6.49 1.91 3.61 Pahang 4.147 1.84 1.60 2.38 2.95 1.114 1.21 1.00 Trengganu 3.20 0.36 0.33 0.148 9.61 6.15 East Coast 11.63 3.85 3.62 14.32 6.68

Source: 1968 Census of Manufacturing

An indication of the range of general manufacturing industry in the activities three states ca.n be obtained from Table I77.24. They mainly comprise these ent-erprises in the food and drink and household goods industries. Many of is are just one or t-wo man operations and the value added per establishment per considerably below that for the country as a whole. The value added establishment is comparatively lowest in those activities in which part of the industry in the rest of the country comprises one or two large enterprises, e.g. coconut oil milling, textiles,. soft drinks and printing and publishing.

Those where the difference is smallest are typically those where the average size of the enterprise elsewhere is also small e.g. tyre retreading, hardware tools and cutlery and tinsmithing. Differences in value added per employee are generally smaller than those per establishment but vary in the same way i.e. low in the east coast in textiles, soft drinks etc. and average in tin- smithing etc. Generally the value added per person appears to be about two- thirds that for the country as a whole.

The figures presented here may understate the importance of manu- facturing in the three states. As was noted in Chapter 2, the 1o67 Socio-

Economic Survey reported a higher proportion of the labor force engaged in manufacturing in the east region than is indicated in the Census of Manu- facturing. There may have been some under-recording of establishments by the census, but since most of these would almost certaiily be one-man enterprises the effect on the overall figures would be small.

Kelantan and Trengganu are the center of the traditional Malay in textile industry dealing/the production of batek prints for sarongs and of songket or brocade weaving. These account for the large number of enterprises reported in Tables III.22 and III.24. This industry is carried out in a large number of small establishments and data are scanty. In Kelantan there are said to be about 200 establishments producing bateks, roughly 150 of which produce block printing (stamp or roll) batek. About 1,000 workers are engaged in the state and output, Twhich fluctuates considerably, is said to average about 57 -

700,000 yards per month. In Trengganu there-are reported to be about h4 establishments employing 200-300 persons, with an output of 100,000 yards per month. Many workers are on a part time basis, but male block printers are said to earn $4 to $5 per day and women $2 to $3.

The industry is currently facing a number of' difficulties. Most batek production is on white cotton cloth and this has been supplied recently

'oy MARA from its factory at Kajang, Selangor. In the past few months this cloth has become, subject to a 5 percent sales tax. This plus other cost increases are said to have increased production costs to a level which makes

it difficult for the industry to compete against other types of cloth. Perhaps more serious is the overall problem of production and marketing organization.

MARA and Malaysia Batek and Handicraft Berhad both have responsibility to

assist in this field. Unsuccessful attempts were made during the mission to

contact Malaysia Batek, so no direct information was obtained on their

activities. MARA has been attempting to sell batek in export market mainly sales through agents in importing countries. However/are currently not up to

expectations. The basic problem appears to be that it has not really been

decided whether the aim is to attempt to place the product in the mass textile market or the handicraft/curio market and to adopt appropriate marketing

strategies. Major difficulties in entering mass markets are that given the

production techniques currently used, i.e. a high proportion of hand labor,

quality control is extremely difficult. Dye colors and patterns vary between

batches and this makes it impossible for clothing manufacturers to utilize it

in fairly automated Droduction processes. Also it i s proving difficult to use cloths containing synthetic fabrics both with regard to the types of dye traditionally used and use of the wax technique. MARA has a research u'nit at Petaling Jaya which is investigating these problems. Attempting to expand the handicraft market also has problems in widening consuwmer knowledge of batek and ways in which it may be used. Many people may admire the cloth, but not knowing what they can do with it will not buy.

MARA is in the process of approaching UNCTAD for advice on international marketing. In the meantime pressure from producers, particularly on the sales tax question, has resulted in the establishment of a task force by the Ministry of Trade and Industry to study the industry's problems.

A team of experts from UNIDO spent 3-4 months at the beginning of 1972 with FIDA carrying out an investigation of the industrial potential

of Kelantan and Trengganu. Their report was in three parts on agro-based

timber based and other industry. The timber study is not yet available.

The recommendations of the other two parts will be discussed in the r.:<

chapter. 3.S Trade

Brief reference was made in Chapter II to the low level of the retail and wholesale activity in the e-ast coast states, particularly five regions latter. Table III.25 indicates the recorded 1966 turnover in retailing of the country in three sub-categories of activities, catering, "holesaling of goods to and wholesalingAMas defined as "'the resale without processing or business units.." It thus covered the sale of goods to manufacturers recorded turn- exporters, e.g. rice and ruobber dealers. As a result the to which whole- over in wholesaling exceeded that in retailing. The extent or region provides saling turnover exceeds that in retailing in any one place wholesale trade a relative measure of the i3mportance of that place as a ratios were as shown center. For the five regions used in the census, the

in Table 3.9.

Table 3.9: W. MALAYSIA. RATIO OF WHOLESALE TO RETAII TURNOVER BY REGION. 1966.

Region Wholesale/Retail South 150

Central 2. 64

North-Central 1.89 Tiorth 2.91 East 1.00 Niational Average 2.10 - 60 -

activity are Marked inter-regional differences in wholesaling ratios are not surprisingly indicated. The two regions with above average and the North region including Penan the Central region which includes Kuala Lumpur ratios, the East particularly The other three regions all have below average the selected towns for which data so. Table III.26 shows the ratios for that the major wholesalIng were presented in the census. This indicates terms were Kuala Lumpur, George- centers in the country in proportionate is a reflection of the traditional town/Butterworth and Malacca. The latter center. importance of Malacca as a trading centers with ratios Among towns in the eastern region, the only a small town near Kota Bharu. in excess of 2 were Kota Bham and Peringkal, 1.34 were both low,indicating Values for Kuantan, 1.60 and KualaTrengganu wholesaling activity in the east the generally low level of development of that the recorded value of whole- coast states. It should be pointed out on the type 8 of activities in a saling in this survey would depend partly probably sell much of their region. Estate agricultural producers would buyers and thus this would not be output directly to exporters or overseas of any wholesaler. Smallholder produc- recorded as passing through the hands This type of bias would tion would however almost certainly be recorded.

, are dominated by small scale tend to favor regions such as the east, w;L'-

activities. obtain a better picture Some data are available which enable us to origin and destination surveys of the trade links implied above p'rom freight the relative isolation of carried out on rail and road traffic. In fact easier to obtain, since at the present the east coast makes these data somewhat

...... time Kelantan and Trenganu have only one road link with the rest of

W. Malaysia. Data are available for the six months from October 1971 -

March 1972 on rail traffic to and from Kelantan. These are presented in

Tables III.27 and 28. In addition, the Highway Planning Unit of the Public

Works Department carried out an origin and destination survey at a point

6 miles north of Kuantan on l1th to 14th June 1971. Because of the shortness of this period it may not be considered a source of accurate estimates of annual flows of individual goods categories. However, it does provide a useful picture of trade flows by road to and from Kelantan and Trengganu

These figures are presented in Tables III.29 and 30. Data on traffic through Kelantan and Trengganmports, which is understood to be small, is awaited from the Ministry of Transport.

The total tonnages of goods by rail to and from Kelantan have been summarized in Table3.100 The major goods shipped to the state are petroleum products, cement, fertilizer, sugar, milk products and Itothern goods. Its exports by rail were logs, rubber, palm oil, rice and "tother" goods, with logs forming 85 percent of the tonnage. The road traffic breakdown was somewhat different and is summarized in Table 3.11,but the basic picture is the same. Petroleum products, processed foods, textiles, household goods, manufactured goods, fertilizers all were shipped into the regions in larger Quantities than were shipped out. Exports were primarily raw or semi- processed materials, logs, sawn tir')er, processed rubber, unprocessed food, rice.

Goods other than logs shipped out by rail, principally went either directly to export (Port H:lang) or to Kuala Lumpur (Selangor). Logs - 62 -

went to Pahang, Johore or principally Singapore for processing. The road

transport flows were somewhat different. The major reported destinations

for goods from Kelantan and Trenggam were Selangor and K1uantan. A similar

survey conducted west of Kuantan.on Route 2 indicated that the major desti-

nation for goods other than local traffic from Kuantan was Selangor. (See Table III.31).

A similar picture is shown for goods shipped into the two states.

Except for specialized goods, e.g. petroleum products from Port Dickson,

sugar from Prai, the major source of goods was Selangor with Kuantan acting

as a wholesaling/transhipment point for a fair amount of road traffic..

Table III.32 shows the origin and volume of goods traffic to Kuantan from the rest of Malaysia.

To summarize therefore the picture of economic activity in

the east coast states is primarily of small-scale enterprise, operating principally in theproduction of primary products for export or consumer goods for immediately local(i.e.not national) consunption. Goods shipped to the rest of Malaysia are mainly unprocessed and, if the final product is consumed within the country, of a type with a low income elasticity of demand, e.g. rice and unprocessed foods. Wholesale type activity is weak in the region and dominated by Kuala Lumpur. - 63 -

Tnb1e 3.10: TOTAiL RAIL GOODS T-RFFIC TO A!TD FROtMI KEIA7,TAI STATIOYTS

4th QUA.TfER 1971 ; UD 1st LITA1T;..1972 B-* C TEGOY.

Category Tonna-aes To Kelantan Frova Kelanta.n

Diesel and .2uel Oil 13,07 4 Ce m-nt E 7 831

Logs 30h 100,573

2erti1izer anTd i.anure 7, 11 781

,ubber 9,909

:ice aLnd Grains '2 1,12

Iron and Steel +1

Su-ar 6I,"2 70

.eer muid Stout

Gas in Bulk a.nd Cylinder 41L,

Petrol 4)407

Kerosen-e and Paraffin 2,7'5 3

IMilk and 1iLlk Powder 1,777 4

'hnir't.1 2eed 603

*.sphlalt .- nCidTturii , 710

l,Tl.n Oil - 3 099

Others 1 1,£ t73

TO' .L 60, 0;O 118, 205 -64 -

; 3.11: 1iLV;?AGS D 'hIIl-.l1i 'L? : rSPOiZT OT ('10GDS TO KZLA- 'T2,. rI,D Ti~0OA U.I JU1I.E 1971 3-TA,TŽ rO2 r.

{Thtev/o [- .verr- *e Daily Tonronare

CTo Ye3.'r;n Fro-Tni Ielantarn A~ T-aign and Tx'enggai-m

VJrocessed Foods 7. . 16.0

Text;iles and -'nper 2roduclts 10.9 L.

Iousehold &urnirhliigs 10:. 7 2.7 lM,iscel13r;eous IU,,nu.actured r'onsull.er Goods 6

1 etroosu.r'iirole odut.s p.L. 13.9

cint;'C'l'.r 10.6 7.2

Ihei-nicals anrd IL -tilizers 20. o.h

Coiistruc!-ion 1.nteri4 ' Is 60.1 3.4

L;;,i . iviber nn^Sd PlLAwood 29.1 91.7

;iis;cellm-i-eouis I1fLdiL.^'.a1x GJoods 2.9> 0.0

. Io-as 03.i 0..

P.ocosus aiLd D)Iblr, r Oi lin. 35i ,'ernels 1).6

VTiproce-2,d !Pood '.'.,.

Li~~ 32.5

, .3 n. n 3 Ciers 403

'0(jnTh C~J03 4 .6 65

4. Development to 1975 This chapter will outline plans and proposals of major agencies has been involved in development who were visited, or about which information obtained, but which have not been discussed in the previous chapter.

4.1 Agriculture and Land Development

Land Suitable for Development the Economic Between 1967 and 1969 the Regional Planning Division of for all Planning Unit carried out a Land Capability Classification exercise exercises states in West Malaysia except Trengganu. The results of these separately were nresented in a series of reports. Trengganu was surveyed in the by a Dutch Technical Aid Mission in a study which resulted studies were based Regional Economic Development Plan, 1970. The E.P.U. to provide an indication upon existing maps and information and were intended of each of the extent.of the forest, soil and potential mineral resources for more detailed state, for the major purpose of identifying areas suitable

study.

Kelantan Table IV.1 indicates the 1966 breakdown of land alienation, reser- the State's vation etc. by category. At that date just over 20 percent of The largest 3.7 million acres had been alienated for agriculturel purposes. Some of this single component (almost 50 percent) was in Malay reservations. was in forest may be used for agricultural purposes. An additional 15 percent reserves. The breakdown of land areas in these major categories by district The suitability and by soil suitability class is shown in Table IP.2. soil -66- classification used was as follows:

Class 1: No limitation for agricultural development.

Class 2: Few minor limitations to agricultulral development.

Class 3: At least one major limitation to agricultural development.

Class 4:- More than one serious limitation.

Class 5: At least one very serious limitation.

Soils of classes 1 and 2 are suited generally for a wide range of

crops. Class 3 soils are usually suited for perennial crops especially rubber

since the most common limitation is that of slope. Most soils in these

categories have average slopes of over 12 degrees. Soils in class h and 5

are generally not suitable for agricultural purposes.

As can be seen from Table IV.2, most of the land suitable for

agriculture in.the districts adjacent to Kota Bharu - Tunpat Pasir Mas, Bachok,.

Machang Tanah Merah and Pasir Suteh (see map) has already been alienated for

agriculture. The major areas remaining which are suited for agriculture are

in the Ulu Kelantan district. Some 550,000 acres in the district are so

classified. However, less than 70,000 of these acres have only minor limitations.

The majority comprises areas with relatively steep slopes suitable principally

for rubber. A good deal of this land lies in the sov,thern part of the district

and is accessible only by track from or from Gua Musang (itself

only accessible by rail).

Pahang

In 1966 less than 10 percent of Pahang s total land area of almost

9 million acres had been alienated for agriculture (see Table IV.3). This

alienated land was concentrated in the western districts of Raub, Bentong, - 67 -

Temerloh and Lipis. Fifty-two percent of all land in the State was held

as stateland and a further 22 percent in forest reserves. The breakdown

of the land in these two categories by its suitability for agriculture is shown in Table IV.h. Statewide some 3 million acres in these two categories

are considered to have agricultural potential, approximately 1.3 million

acres with few minor limitations on the range of crops. About 750,000 acres of this firs,t and second class land axeconcentrated in Temerloh and Pekan

districts and have been included in the areas covered by the Jengka Triangle

and Pahang Tenggara projects.

Trengganu

The soil survey carried out by the Dutch Technical Aid mission indicated that 40 percent of the state (or 1.25 -million acres) is suitable

for agricultural development. At the time of the survey almost 300,000

acres were being cropped. Thus some 950,000 acres remain available for develop-

ment., The breakdown of total area under potential use categories is shown in

Table IV.5. Much of the total area is contained in small or isolated tracts, was suitable and it was considered that a future total of 600,000 acres Xor agricultural

use. The largest areas of suitable land are located along the foothills of

the main mountain chain, with a particular concentration in the couthern districts of Dungun and Kemaman. In order to coordinate and facilitate c- development programs in this area,the Trengganu Tengah Task Force was created in March 1972. This is a joint Federal-State Coommittee chaired by an officer of the Economic Planning Unit. This task force has identified about 450,000 O acres in the area as suitable for allocation to agencies, etc. - 68 -

Prog:qms of M4ajor Agencies

(a) The Federal Land Development Authority (Ft;DA)

FELDA has been and remains the principal public land development

agency now responsible for developing over 50,000 acres per year. In order

to meet this large target,efforts have been concentrated principally in

Pahanig and Johore. In Pahang the major current development is in the Jengka

Triangle. Present plans in Pahang are as shown in Table 14.1

Table .1: PAHANG PROJECTED FOLDA LAND Ds:VMLOFNSNT 1972-75

Years Area Crop 1972 1973 1 97h 1975 Total Jengka Oil Palm 7,600 9,700 4,500 Rubber 9,000. 4,300 1 2,900 Tekaxr Forest Oil Palm - 8,0oo 8,000 16,000 W. Pahang Oil Palm ,o000 L4,000 3,000 11,000 Bt. Amas Rubber 5,000 5,000 10,000 Pahang Tenggara Oil Palm 21,240 18,600 33,620 18,910 92,370 Rubber 6,000 6,000

30,2140 53,500 60,320' 390,310

Over the period, 1"276-80 the Pahang Tenggara plan proposes a total of

92,650 acres, 35,100 acres to be in oil palms and 57,550 in rubber.

In Trengganu FELDA is planning a total of 20,600 acres, all oil palm, in the remainder of tne S.M.P. period, with a further 10,000 acres scheduled. :.n 1976 and 1G77. These areas are all in the Trengganu Tengah area iA Dungun and Kemn--nan districts. - 69 -

'Table 4.2: TRENGGANU FELDA LAND DEVELOPMENT, 1972-77

1972 19073 1974 1975 1976 1977 Total-

Jabor Valley 6,600 6,600 Jerangai Barat 1,60o 1,200 1,200 4,000

Rasau- 5,000 5,000 5,000 5,000 20,000

In Kelantan FELDA has no current plans for any schemes. Some pre- liminary discussions have been held about the possibility of doing so in the future. Fi,LDA is understood to be aiming to expand its operations to be able to develop 100,000 acres per year by the end of the S.M.P. period. These figures for Pahang imply a very rapid rate of increase' over the next two years. Given the general demand for management staff for such projects there is likely to be considerable difficulty in meeting these targets. In Pahang and Trengganu no major problems are currently being faced in obtaining con- tracting services for clearing, planting, etc., but apparently fruit transport has been difficult in Trengganu because of a shortage of local haulage contractors.

In future schemes in Pahang, FELDA is clanning on holdings of 12 acres for rubber and 1l acres for oil pplm. These acreages vary from state to state depending on the wishes of the state government, and are usually lower than this. In Pahang,.initially a quota of 50 percent of settlers were to be from

.ithin the state, but in fact it has not been posssible to meet this and only about 30 percent are state residents. Currently about 20 percent of the intake is from Kelantan and the remaining 50 nercent from the west coast states. -70-

-(b) Federal Land Consolidation and Rehabilitation Authority (FELCRA) FELCRA's role as a land development agency is being greatly expanded in the S.M.P. period. It's overall target for development to 1975 is 116,000 acres. Of this, 60,000 acres are to be in youth schemes and the remainder divided between settlement schemes and estate type operations. The operation of the youth schemes is to be as before, with the youths living in communal quarters and agreeing to remain single for the initial five years of the scheme. The majority of youths in these schemes will be recruited from within the same state, but 20 percent or so will be from elsewlere. FELCRA's devalopment progran in Trengganu has not yet been finalized- and there is some difference in current estimates. FELCRA indicated a probable 36,000 acres, but the Trengganu Tengah Task Force suggests a total of 68,000 acres but does say that FELCRA might not be able to develop this area in the S.M.P. period. At present they are developing a youth s6heme at Kuala Brang at a rate of 2,000 acres per year with a probable total of 10,000 acres. They will start a rubber scheme at Besut next year with an initial program of 1,000 acres per year. They have an additional 11,000 acres near Chukai to be developed in oil palm in 1974 and 1975. A reasonable expected total for their activity in Trengganu to 1075 might thus be 25,000 acres. In Pahang,FELCRA is planning a total of 14,000' acres in the S.M.P. period. The form of this development has not yet been decided. In Kelantan no firm committments have as yet been made. Some discussions have been held and the matter remains uncertain.

At the present time FELCRA is experiencing considerable problems in staffing. At the field assistant level it has staff under training with

6'@¢ tSP-WYti'hfiri;~,Ai;;5 ,l ;= SSvi w'=. iM?i #XXt-KtsXS.e=tttszg'SetuairVN?a.s--A~)hi.KCt'tauW:c -71-

FELDA, but given the latter!s needs there is undoubtedly an element of

"robbing Peter to pay Paul', here. At the management level staff is being engaged from the private sector as far as is feasible.

Other Agencies by State

(a) Kelantan

The State Land Development Board has been operating smallholder

land developm6nt schemes for some years, and claims to have opened up some

70,000 acres in the past decade. In the S.M.P. period it officially plans

to develop 85,000 acres or more, with 8,000 in oil palm, 60,000 in rubber and

17,000 in other crops. There is some doubt however whether this target will be reached. This is partly because the major areas available, in the Ulu

Kelantan are at a considerable distance from major population areas and

access is poor. Roads are liable to flooding during the monsoon season and

there are no imnnediate plans for improving them.

The State Economic Development Corporation has, as indicated earlier, plans for developments in oil palm and tapioca. Approval has been obtained from the Federal Government to go ahead with the Sungai Terah Oil Palm. scheme, near Gua Musang in Ulu Kelantan, which will extend to about 12,000 acres and will be developed over four years. The corporation is also negotiating with potential private partners for two tapioca projects, one of 3,000 acres for starch and flour and a 30,000 acre project for chip and pellet production.

Given these figures, it may be reasonable to expect land development of between 50 and 60,000 acres in the State in the S.M.P. period. About

20,000 of these are likely to be in SEDC projects and the remainder in -72-

smallholder development. As noted in Chapter III smallholder rubber acreages appear to have been growing at almost 1i),000 acres per year up to

1970, but with increasing difficulty of access this rate must be expected to decline.

(b) Trengganu

The SEDC is currently dev'eloping a 20,000 acre oil palm scheme of which 11,000 acres have been planted at Sungei Tong,north of Kuala Trengganu.

The remaining area is slated for planting in the next two years. The cor-

poration's major land development effort will be in the Trengganu Tengah area.

It has a 15,000 acre rubber scheme at Bt. Besi, of which 5,000 acres have

currently been planted. In addition it has a large joint venture scheme with.

the National Develonment Finance Company (NADEFINCO). 22,000 acres have been developed by the company near Kemaman, and an additional 21.000 is earmarked for this purpose. Consideration is also being given to a.cattle breeding station but no acreage has yet been set aside for this purpose. The Trengganu

Tengah Task Force indicates that the SEIC's nrogram in the area over the remainder of the S.M.P. period will amount to 3,000 acres per year. It is not clear whether this acreage excludes tha: being developed by NADEFINCO.

So Coc

This society, primarily utilizing funds derived from the Rubber

Fund Boards "Fund B" has been assigned a major role in land development in the S.M.P. period. Its total target is 150,000 of which 30,000 acres have been allocated in Trengganu. The capacity of the society to develop this is uncertain. Although 16,000 acres had been allocated to the society in - 73 -

Trengganu, of which 12,000 are suitable for development, these have not yet been planted up apparently because insufficient seedlings were said to be available. It is said that adequate supplies of seedlings will be available next year. The Trengganu Tengah Task Force reports their development program in the area as follows: Acres 1972 12,000 1973 3,100 197[v 10,000 1975 5q,o,

41-, 000

Given the slippage which has already occurred this program must be viewed as optimistic. A total of 20,000 acres in the period might be more appropriate. E-pected land develonment by agency in the State through the

S.M.P. period may then be as follows:

Trengganu Tengah:

FELDA 20,600 Oil palm FELCRA 12,800 Oil palm SEDC 12,000 Oil palm Smallholder's Coop. 20,000 Rubber

Elsewhere: FELCRA 13,000 Oil Palm and Rubber SEDC 1h,000 Oil Palm and Rubber Other smallholders 25,000 Rubber

116,400

Pahang

The major land develorpment effort in the state will be that related to the Pahang Tengg2ra project. Table IV.6 shows the projected agricultural development schedule Proposed by the consultants for this area. 250,000 acres have been proposed for development in the S.M.P. period, of which 191,000 have - 74 -

already been committed. These areas comprise 100,000 acres for FELDA, 72,240 acres for nucleus estates to be run partly as joint ventures with the

SEDC and 18,800 acres to the "Ladang Pegawai"l an estate to be developed by

the Government Officers Cooperative. A further 17,500 acres were identified by the consultants as follows:

(a) Resettlement along the Pahang River, 6,800 acres. (b) State Agricultural-Industrial Development Board scheme, 3,700 acres.

(c) Snallholder settlement of the fringe alienation type near Triang to

relieve pressure for land in that area, 7,000 acres.

No specific recommendations were made on the remaining 40, 000 acres

for development in the S.1.P. period or on the 320,000 acres earmarked for

develonment in the Third Plan period, except for the 92,750 acres for FELDA.

As noted in Chapter III, smallholder rubber development in the late 1960's may have averaged about 20,000 acres per year or more in the State. Given the lower prices now prevailing this may have fallen off now. Reasonable totals for land development in the State in the S.M.P. period may then be: Acres Pahang Tenggara 250,000 Jengka Triangle 52, 000 Smallholder Rubber 50,000 Other FIELDA 37,000 Other 25,000

4 14,0o0 - 75 -

Other Possible Developments

The TJNIDO/FIDA report on industrial development in Kelantan and Trengganu recommended a number of agricultural-industrial schemes for the two states, which are summarized below: (a) Rubber Processing: They recommend6d projects for production of types, rubber footwear, rubber dipped goods (e.g. gloves) and belting. (b) Padi:

(1) Rice Milling. Six units each of 4 tons per hour capacity should be established in the two states over 5 years. (2) Two rice bran oil extraction units should be established by 1975, each with a capacity of 30 tons of bran per day. One would be in each state.

(3) Padi straw board plants should be established. A 40 ton per day plant should be started now in Kelantan, and a 20 ton per day plant estab- lished in Trengganu later.

(c) An integrated coconut processing plant.

(d) Ground nuts should be developed on a large scale in Kelantan with un to h0,000 acres under the crop and processing plants should be estab- lished.

(e) Cashew production should be expanded, with 10,000 acres in each state. Processing should include extraction of nut shell liquid.

(f) Maize production in Trengganu should be considerably expanded.

(g) Sugar production should be established in Kelantan. (h) A meat oacking plant and tannery should be constructed to utilize local beef production. - 76 -

(i) Wheat flour mill.

(k) Small-scale canning plants for fruits, etc.

It is not clear that current technical knowledge is adequate to

sustain development on the scaJ,e suggested in some cases, e.g. groundnuts,

sugar and maize. Sugar schemes have been started in several other parts of

the country e.g. Perak, Perlis, Negri Sembilan and Johore, and these, if

successful are likely to meet local demands for the near future at least. 4.2 Forestry

An extensive survey of the extent of West Malaysia's forest resources

was carried out as part of the FAO/UNDP Forest Industries Development Project.

Table IV.7 indicates the estimated probable yearly outturn of timber on a

sustainable yield basis, for.the industry units shown in Figure IV.1. Table 4.3

shows the FIDP estimate of probable outturn for the first five-year period

compared to the actual 1970 log production for the three east coast states.

Table 4.3: EAST COAST STATES, 1970 LOG PRODUCTION AND PROBABLE YEARLY OUTTURN OF TIMER

1970 Production Probable Yearly Outturn 1st 5 years ('000 tons) ('000 tons) Kelantan 199 422 663

Trengganu 398 522 634

Pahang 2649 1327* 2015

* Includes part of Negri Sembilan -77-

Production in Pahang in 1970 was clearly above the long term sustainable yield in the state, principally because of output from areas being cleared for agricultural use and some creaming of good areas elsewhere. In Kelantan and Trengganu, production was below sustainable yields, parti- cularly in Kelantan, indicating considerable scope for expansion of activities. The probable outturn in the first five years is compared to 1968 timber pro- cessing capacity in Table IV.8. This indicates that all three states have significant scope for expansion of processing capacity, but that this would be achieved at the expense of older established centres, principally in Selangor and Negri Sembilan. As can be seen in Table III.19 this potential gap has rapidly been filled in Pahang, where in 1970 mills in operation and approved had an estixfated annual capacity of 1.05 million tons. Similarly in Trengganu there was in 1970 a potential annual capacity of 256,000 tins. In Kelantan little additional capacity was in the pipeline as of 1970. A number of timber projects are under discussion and will be summarized below. (a) Kelantan

The State Economic Development Corporation is considering the estab- lishment of a veneer and plywood plant, probably in the Tanah Merah area to utilize an area of 100,000 acres. Tn the longer term another similar plant of this size is also considered a possibility.

(b) Trengganu

The SEDC is involved in discussions with the Rumanian Goverrnent on a possible joint venture enterprise to process abouit 100,000 tons of timber Der annum, producing sawn products and veneers. The Tropical Veneer Co. plant has an additional capacity of 15,000 tons per annum and is likely to be expanded. 78 -

A further timber complex based on almost 500,000 acrs in Ilu Trengganu has

been tentatively proposed, but as far as is known is not under active con- sideration.

(c) Pahang

The Pahang Tenggara report proposes the development of two '"Integrated

Forest Complexes". One at Lesong would contain an integrated sawmill and ply-

wood plant. This would be based on timber from an area of 116,000 acres which

would yield abouti 125,000 tons of logs per annum. The second complex at Bukit

Iban would contain a sawmill and remanufacturing facilities in conjunction with

a plywood operation with potential for expansion into particle board and fully

finished component parts. This would be based on 120,000 acres with additional

timber from agricultural clearing operations, and came into operation in 1975.

The Mentiga Forest Products Company is also planning a plant based on 102,000

acres which has already been committed. The consultants also recommended the

consideration of a furniture component plant. They felt that given the above

major complexes, the capacity of the existing industry adjacent to the project

area would be adequate to utilize timber production from the project area.

An additiona'l project has also been recently announced for central

Pahang in which 150,000 acres are to be set aside for the production of

.tropical softwoods for paper production.

3 Projection of Agricaltural and Forestry Output

Based upon the estimates of future production made in earlier sections

an attempt has been made to projecu value added in agriculture and forestry for

the three eastern states. As a base year for reference purposes the 1968 Lim

estimates have been used. For 1970 actual f'gures for outputs or acreages - 79 -

have been used as a guide. These figures should be treated as estinates of

probable orders of magnitude, rather than detailed projections. (a) Kelantan

Table 4.L: KELAN;TAN ESTIMATED VALtU ADDED IN AGRICULTURE AND FORESTRY TO 1980 BY SECTOR ($ million)

($ million) Sector 1968 1/ 1970 1975 1980

Rice 15 30 39 45 Rubber 35.2 38 45 55

Tobacco n.a. 8 8

Coconuts 5.6 5.5 5.5 6

Oil Palms 2.2 4 9 16

Misc. crops 18.22/ 18 20 25

Livestock 21 .9 22 22 25

Sub-total 98.1 121.5 148.5 180

Forestry 6.8 8 10 15

Fishing 5.0 5 6 7

Total 109.9 134 .5 16)4.5 202

l/ Lim Estimate.

2/ Includes tUobacco. - 80 -

As indicated in e-arl.ier discussionis, the estinates of rubber output are particularly open to error because of the apparent discrepancy between recorded output in 1970 and implied mature acreage. The estimates by Lim of value added in livestock production in 1968 may be on the high side. As shown in Table III.11, Kelantan has a negligible proportion of the national pig heard and poultry numbers are also believed to be relatively low. These two items account for more than half of total value-added in livestock. There is no evidence of increasing livestock numbers or output in the state and the estimates reflect this.

Thus the tentative projections of agricultural output suggest a rise in value added from about $120 million in 1970 to $180 million in 1980 or a rate of about 4 percent per annum, a rise about in line with expected national average.

Considerable potential for increased forestry output exists but will await improved access. Any large timber processing complex will also not be operational before 1975. Thus any major increase in output will probably be delayed until later in tihe decade. Current fisher-Les efforts are expected to result in some, but not any dramatic rise in outrut. The industry's main center of expansion appears likely to be in Trengganu rather than Kelantan. (b) Trengganu

Agricultural output apnears likely to grow far more rapidly in Trengganu than in Kelantan, as a result primarily of the rapid increase in oil nalm production. Current information suggests that growth in oil palm output is running slightly behind that projected by the Dutch Technical Aid Mission which forecast a value added of $13.1 million in 1070 -81-

and $32.3 million in 197Th. However, there does appear to.be considerable scope for further output increases here. 1970 padi output was however above the TDUM

forecast of 52,500 tons. This however called for a rapid increase to 86,000

tons in 1975, which may be a bit optimistic as a result of delays in irrigation schemes.

The estima.te by Lim of output in miscellaneous crops seems extremely

high, especially since the State has no major high value crop such as tobacco

(see Table III.10). DTAM only attributed about $3.0 million to other crops,

or about $7 per perLn which appears low. Assuming that technical problems

related to maize and other short-term crops are ironed out in the next few

years, and cashew nut plans proceed, output in this sector could grow rapidly

in the second hailf of~ the decade. In total therefore a growth of agricultural

value-added approaching 10 rpercent per annum may reasonably be taken to be in prospect.

Forestry output expanded very rapidly in the late 196 0's. Integrated

timber complexes now being discussed are unlikely to be operating before 1975.

The land development program will however help maintain a high level of pro-

duction with considerable volumes of logs being shipped out of state. (c) Pahang

As a result of the major land development program in Pahang Tenggara,

agricultural output will expand rapidly over the next decade at a rate of about

10 percent per annum. with heavy concentration in ru.bber and oil palms. While

forestry output is exDected to remain at a high level as a result of the land

clearance program it is assumed that the major expansion period is now over

since production is already above es-tiated sustainable yield. Presumnably a

reduction in output will occur, but this seems likely to be delayed until the next decade.

r~~~~~ #grl .~" :0d- .ceeR1.S..1ri4 SbtnZ:4SLllr s.rmf.t$aa1$ ..A;#',hri+c/.qz.e: rvr - 82 -

Table 4. 5: TRENGGANU, ESTIMATED VALUE ADDED IN AGRICULTURE AND FORESTRY TO 1980 BY SECTOR

($million ) Sector 1968 1/ 1970 1975 1980 Rice 7.3 10.5 1i 18 Rubber 14.4 15 20 30 Coconuts 2.4 2 - 2 2 Oil Palm 3.9 7.5 25 50 Misc. Crops 26.3 12 1il 20 Livestock 7.5 7 8 10

Su-b-total 61.8 54 83 130 Forestry 6.8 12 17 20 Fisheries 1h.L 12 16 20

Total 83.0 78 116 170

I/ Lim Estimate.

2/ See text.

Table L4.6: PAHANG ESTIMATED VALUE ADDED IN AGRICULTURE AN)D FORESTRY TO 1980 BY SECTOR

($ million) Sector 1/68- 1970 1975 1980

Rice 7.7 6 6 7 Rubber 56.9 60 70 90 Oil Palm 2/ 5.1 23 80 160 Misc. Crops- 26.2 27 32 42 Livestock 8.9 9 12 18 Tea L.9 5 6 6

Sub-total 109.7 130 206 323

Forestry 67.7 90 90 90 Fisheries 5.4 5 6 7

Total 182 ,8 225 302 420

1/ Lim Estimate.

2/ Includes coconuts. -83-

4.4 Manufacturing

This section will discuss the recommendations of the UNIDO/FIDA study of industrial development in so far as they relate to specific projects. Broader aspects of industrial development strategy are discussed in Chapter V.'

The UIDO report attempted to estimate demand for a range of products in -Kelantan and Trengganu, estimating for which of these potential demand in the near future would expand to levels sufficient to justify a local plant. These estimates were, it is understood, based on a study of demaxds in Sarawak which has approximately the same population as Xelantan and Trengganu.

As a result of these estimates the study recommended the establishment of. the following operations:

(1) Asbestos cement pines, sheets and tiles. (2) Earthernware and ceramics based on Kaolin deposits at Kemaman ihich are being investigated.

(3) Welded steel pipes.

(4) Circular and warp knitting.

(5) Shirts and trousers.

(6) Rubber or part rubber shoes e.g. Twith canvas or leather uppers. (7) Architectural metal products.

(8) Domestic utensils.

(9) Hand tools and agricultural implemenbs.

(10) Iron mongery - l.ocks and bolts: hinges.

(11) Small engineering castings.

(12) Plastic containers. - 8L4 -

(1 3) Paint.

(14) Industrial gases.

(15) Glass bottles.

(16) Accumulators.

(17) Reclamation of lubrizating oil.

Given the size of plants recormmended it was estimated that these operations would employ about 1LOO persons. Those are basically small producer or household goods for local consumptioin, and as such are tied into the overall growth of the lo2al market which in turn is dependent principally on expansion of primary products.

The proposed Dro,ect with perhaps the greatest potential is that for warp-knitting. This proposal is reported to be under active consideration for SEDC participation. The initial plant might have a capacity of 3.6 - 7.2 million square yards per annum requiring a capital outlay of about $3 million. At present there is no - up-knitting plant in the country and a plant of the size suggested would have to capture a substantial share of the national market to be viable. A plant of this type could be expandied to produce knitted underwear. Total employment in the two operations might be in excess or 200.

The major problem facing industrial development in the area, as indicated earlier, is remoteness from the bulk of the national market. Reported transnort costs vary somewhat, but the following are typical: Road: Kota Bharu - Kuala Lumour $1P67/ton light goods $L5/ton heavy K. Trengganu - K. Lumpur goods $L45/ton light goods Rail: $35/ton heavy goods Including estimated transfer costs

Kota Bharu - uala Lumpur :0/ton light goods $4l4/ton heavy goods - 85-

The completion of the East-West highway will reduce costs of

reaching west coast ports considerably, especially from Kota Bharu as

illustrated 'in Chapter II. Costs per ton for goods from Kota Bharu to

Penang may then be around $36 per ton for light goods and $25 for heavy

goods. Rates to Kuala Luinpur will be reduced less, perhaps to $55 and $140 1976 or later respectively. Since the highway is not expected to be operational until/there

is a considerable disincentive to any industry starting operation before then.

It might be useful to consider some form of short-term transport cost subsidy

for the interim period to bring rates charged somewhat closer to what they will be when the highway opens.

While: electricity supplies appear to be adequate, there is some

criticism of the fact that the average tariff on the east coast is about

8.5 cents per unit, compared to average charges of 5 cents to large consumers

and 6-8 cents for smaller ones on the west coast. However it is difficult to

see this being a major factor determining location except in special cases.

The Electricity Board is extending its 132 kv. grid to Yuantan by 1974. Present

plans do not call for any further extension on the east coast, remaining towns

will continue to be served by diesel units. Consideration is being given to a

hydro-electric scheme at , Pahang, between Kuala Lipis and

Jerantut, with a potential capacity of 100 M.W. This would also have flood

control benefits. A pre-investment study has also been carried out on a potential scheme with similar generating capacity on Sungei Pergau in Kelantan.

Possible schemes in theSungei Pahang and Sungei Tekai in Pahang and Sungei Jeugeri in Kelantan.will also be investigated. - 86 -

Industrial development in the east coast states is hampered by a more intractable problem. Because of the low-level of industrialization many officials have little or no experience with dealing wfith industrialists problems. Thus areas may be designated as "industrial sites" which for one reason or another may be unsuited for this purpose e.g. extensive earthworks may be needed or the site may be subject to flood or access may be inadequate. This type of problem has held up the development of suitable sites. The Malaysian Industrial Development Fund (MIDF) and its subsidiary, Malaysian Industrial Estates Ltd., (MIIET) are attempting to assist in identification and preparation of suitable industrial sites. IRIEL is planning the develop- ment of standard factories for sites in Yuantan, Kuala Trengganu and Kota Bharu. Of these onlr Kuantan is definitely going ahead with 28.factories - of 1,000 to 3,000 sq. ft. on a 3 acre site. Development of the other sites awaits agreement with the State governments. - 87 -

5. Conclusions

The conclusions and recommendations to be drawn from this study may be grouped under two main heads -- those relating to the overall develomant strategy for the east coast region, and those related to specific questions of monitoring progress in development. As indicated, the east coast states at present play an essentially peripheral role in the Wgest Malaysian economy. They are relatively under- developed in the sense that they contain large areas of land suitable for agricultural development and have extensive forest and possible mineral resources. The present economic structure is principally oriented towards primary production of rubber and timber for export to the world market. "Exports" from the region to the rest of the economy comprise unprocessed products such as foodstuffs, or rubber, timber, etc. for processing and re- export. At the same time income levels are generally lower than in the rest of the country as /piiblic and private service levels.. The area, particularly Kelantan and Trengganu is also physically remote from the main economic centers along the west coast of the country. Regional policy is therefore aimed at reducing this income gap between the region, especially Kelantan and Trengganu and the rest of the country. Since these two states are heavily Malay thus has obvious implications with respect to interracial as well as interregional income differentials. Two, more or less opposite types of strategies might be adopted. The first might aim at utilizing the area's natural resources through agri- cultural development programs and, given the increased incomes that this - 88 -

would generate, aim to capture as much of the increased spending for locally produced goods, i.e. stimulating as far as possible small-scale industry catering for the local market. The relative isolation of the area from the rest of the economy would not be of great importance in this approach, as long as transport facilities to export markets were adequate. Construction of the east-coast port and perhaps the east-west highway would be valuable here. However there are a number of reasons why such an a.pproach might not be successful in this case.. Principally the region is not sufficiently isolated. Once the East-West highway is completed the bulk of Kelantan will be only just over 200 miles from Penang and Ipoh. Similarly all of Pahang and southern Trengganu is within the same distance of Kuala Lumpur. This means that the relative cost differential in favor of local producers will be small except in cases where transport costs are high e.g. building materials, or speed is important e.g. perishable foods or service trades.' Additionally the West Malaysian economy is a very open one and consumers are used to having a wide range of local and imported goods available. It is difficult to conceive of a successful policy being carried out of restricting the access of consumers in one part of the country to producers in another part in order to foster local production. The spread of nationwide radio and T.V. with commercial support tending to create a national market for consumer goods would also mitigate against this. Economic and physical isolation of this sort is likely to result in political divisions and strains on national unity. Such strains are likely to appear in Malaysia with respect to the relationship between Wiest and East Malaysia (i.e. Sabah and Sarawak) where physical separation is considerable and East.Malaysia - 89 -

tends to look to other countries in its trade relations (especially Hong Kong, Japan and Singapore). For these reasons therefore a policy designed to develop the east coast states in some degree of isolation from tuhe rest of -the country is considered to be likely to be unsuccessful in terms of its economic distributional goals and unacceptable politically. It will therefore be assumed that the principal aims of policy are reduction of economic disparities and economic integration. Within this framework there are a number of issues which may be raised in relation to the overall strategy for the development of the east coase region

.1 Transportation Links The relatively low level of surface trans- portation services in the region,-especially Kelantan and Trengganu, in terms of provision of highways and vehicles to rn o.n them, and the relatively late development of the links with the west coast have been discussed at some length in Chapter III. At the present timxe construction of the East-West highway from Grik in Perak to Jeli, Kelantan, a distance of some 65 miles is underway and it is anticipated that this highway will be completed by 1976. The potential impact of this highway on the east coast states has also been discussed in Chapter III. Prior to the decision to construct the highway a number of projects were considered, including a link from Sungei Siput, Perak to Gua Musang, Kelantan and on to Kuala Brang, Trengganu. It was felt that this road would be preferable from a land development point of view as it would open up the nlu Kelantan area directly and provide access to east or west coast ports. Consideration was also given to a link from Kuala Krai, Kelantan via Gua Musang to Kuala Lipis, Pahang, linking through to Kuala - 90 -

Lumpur via existing roads. Most of these possible links were evaluated briefly in the Malaysian General Transport Study. The estimated benefits from the Kuala Krai - Kuala Lipis highway were relatively small. It was also considered that such a link would result in the funneling of additional traffic and activity into the Klang Valley which was undesirable in itself. The Grik-Jeli road would link Kelantan with the North-West and provide some boost to that area as well as providing an easier access to export markets for Kelantan products. In addition it was useful from a strategic point of view in providing quick access along the border area. However even though the Grik-Jeli -road has been constructed, additional benefits might be obtained from a Kuala Krai - Kuala Lipis link. In the first place a road from the Kelar.tan plain to Ulu Kelantan will be necessary before any large 'scale land development may be expected to talce place. This highway would also further reduce the distance between Kelantan and Kuala Lumpur, the major market in the country. The relative distances between Kota Bharu and Kuala Lumpur are 404 miles on existing roads, 340 miles via the Grik-Jeli highway, and about 275 miles with a highway via Kuala Lipis. The effect on the estimated "cost of serving the national market", from various points in Kelantan and Trengganu is shown in Table 5.1 and mapped in Figure 5.1. It is clear that such highways have potentially a greater impact on the dis- advantaged area than the "metropolis". Thus a 20 percent reduction in cost to a local market which only comprises about 3 percent of the total is irsignificant;where the local market amounts to 25 percent of the total such a transport cost saving is of considerable importance. It is clear from the table that a Kuala Lipis - Kuala Krai road would have no direct impact on - 91 -

and Kuala Trengganu /the southern part of the state since no reduction in distances is achieved. Thus in terms of the east coast states as a whole the Jeli - Grik road at present being constructed is probably the better of the two. In fact with the additional road link Kuala Trengganu would become relatively the most remote town on the east coast. But1 even given this drawback the highway would have the i-mportant psychological value of providing Kelantan with a direct road link to the capital, thus helping to reduce the feeling of isolation from the remainder of the country.

Table 5.1: RELATIVE COST OF SERVING THE NATIOlNAL MARKET FROM SELEICTED POINTS WITH DIFFERENT HIGHWAY LINKS (W. MALAYSIA oNLy)

"CostU " ,i, _ _ Existing With Jeli- With Jeli-ri Place and Highways Grik Highway K. Krai -. Lipis Links Kota Bharu 492 355 311 Tanah Merah 481 333 288 Jeli 515 315 297 L58 344 310 Kuala Trengganu 391 326 326 Kuala Lumpur 163 160 159 KualLa Lipis 221 221 210 - 92 -

5.2 zhdustriil Policy

The FIDA/UNIDO study on industrial Development in Kelantan and Trengganu made a number of general recommendations on industrial development in the region besides the specifically recommended industries reported in Chapter IV. Their approach was aimed at using available local labor and materials, and serving the local market "In principle, only projects should be considered for which the region itself offers a sufficiently large market unless they are very highly labour intensive, lo c,al or are based on / raw materials." In general they considered that such industries would not be attracted without additional incentives. However they felt that the current incentives pertain- ing in the country as a wAhole could not be reasonably extended as it was felt that they are generous enough already. Instead it was recommended that a list of specific industries be drawn up in which the installation of new capacity or extension of existing capacity would be prohibited except on the east coast. "This list would include only industries which have a sufficiently large market within the east coast region to be economic.". The embargo would be for a limited period, five years was suggested.

It is suggested that the region to be designated for development should include the state of Pahang in addition to Kelantan and Trengganu. The reasons for this are first to avoid a proliferation of special areas and secondly because Pahang is a high wage area and its inclusion should not unduly interfere with the development of the other two states. 'rhirdly of course it increases the total regional market.

There will necessarily be some competition between the States in attracting new industry and this is not a bad thing since there should be some pressure on them to offer such facilities as lie within their power, 93

in particular the establishmeont of industrial estates at a reasonable price.

Apart from this Trengganu should hope to take advantage of its central position by establishing a somewhat lower level of wages than has obtained at the mine and to a lesser extent at the Mara boat building yard."

In practice there might be a number of particular difficulties in attempting to operate such a policy. Firstly for most goods the east coast region is a relatively small part of the total market. Thus creating a separate plant serve to that part of the market would not release much capacity. Thus in a situation where manufacturing output is growing at close to 10 percent per annum, a delay of 2 or 3 years in installing addi- tional capacity could cause considerable shortages, perhaps necessitating imports, as quantities demanded could rise by a quarter or one third -- considerably in excess of the total likely to be produced on the east coast. Second,while as stated the addition of Pahang would increase the size of the potential market, it is difficult to see how this could be converted into an actual single market. Much of Western Pahang is closer to Kuala Lumpur than Ituantan and would naturally be served from the former area. Short of physical controls or some specific subsidies this would continue to be the case. Thirdly, the region is not sufficiently homogeneous. As can be seen from Figures V.1 and 2, it contains areas which are within 50 miles of Kuala Lumpur with fairly ready access to the ccuntry's major markets, to the much more remote areas of Kelantan. Even with additional highway links, Kelantan and Trengganu will remain relatively remote. The effect of the type of policy suggested could well be a growth of industry in the relatively accessible - 94-

areas of Western Pahang rather than on the north-east coast itself, even though labor costs might be higher in the former location. This could be avoided in part by allowing only a restricted part of Pahang e.g. , for location of such industries. A slightly different policy approach might be preferable. Several of the industries suggested are of a relatively basic type e.g. various building materials. If the private sector does not move in to supply the growing local market, they might be suitable for investment by state economic development corporations, perhaps on a joint venture basis -- as is suggested by TJIDO. Since such ventures would not quality for "pioneer status" for tax purposes, and SEDC's do not an,y,pay, some special type of provision might be made, e.g. investment grants or low interest loans, where considered appropriate. However such development will do relatively little to change the fundamentally peripheral nature of the east coast economy, with little spin- off benefits from developments elsewhere. New industries and products will continue to be introduced and developed in the main economic core area of the country 6n the west coast. To some extent this shape of the economy has been permanently fixed. However some attempt might be made to point some new industries or those with growth potential to the east coast. Reference has been made earlier to the current difficulties of the batek industry. However speciality cloths of this type and items made from them must be viewed as having considerable export potential. The industry as a whole appears suitable for a fairly extensive study to enable the best markets to be targeted, marketing strategies determined,production needs and methods assessed. Since (a) the indus>N'y, particularly shirt-making etc. is relatively labor intensive, (b) the north-east coast is the traditional centre of Malaysian -95- batek, and (c) MARA has a significant role in the industry, it would also

seem appropriate to determine the extent to which the industry could be relocated in Kelantan and Trengganu. There appears to be no overwhelming reason for having a shirt factory in Kuala Lumpur in present circumstances.

The Pahang Tenggara study investigated the feasibility of estab- lishing a plant to produce parts for knock-down furniture etc. Such plants might be established with one or two other timber complexes in the other east coast states.

A further industrial policy which might be studied is that of' "Free

Trade, 7ones". A number of these have been or may be created on the w4est coast e.g. at Port KLang, Penang, Prai and possibly Malacca and Johore Bahru.. By their nature the type of operation attracted to such locations are those of a processing and re-exprort nature. The potential- for the development of backward linkages is inevitably small -- if it were not the attraction of the tax-free status would be correspondingly reduced. Such industries therefore do not add a great deal to an area such as Kuala Lu.mpur except Jobs. They might however be able to contribute more in a location such as those on the east coast e.g. at Kuantan, Kuala Trengganu or Kota Bharu. Where industrial infrastructure is currently limited such industries could do two things -- help create such infrastrcuture by creating a demand for it -- including such activities as office and repair services and secondly, since a number of relatively well known names are likely to be involved in such a develoDment, help improve the overall image of the location. This will subsequenuly help attract further enterprises who will probably create a greater demand for locally produced goods and services. The aim would thus be to use the free - 96 -

trade zone or equivalent as a catalyst. The potential peoblem in Malaysia is that there will be so many of them that such an impact will be impossible to achieve. One possible policy might be to place a given life on the current zones, i.e. no new industries wi.ll be allowed to establish there under tax-free conditions after a certain date. At that time new zones could be opened up ellewhere. Possible zones on the east coast would therefore have to be very restricted in number, perhaps two at most. Given that surveys have established that the only good port site on the east coast is just north of Kuantan (Tanjong Gelang) this will be the most su.itable site in the area. Establishing a free trade zone there, once the port is in operation could help significantly in promoting industrial expansion in the area.

5.3 The Role of Kuantan

The Pahang Tenggara report contains some discussion of the urban hierarchy in that project area and of the effects of different urban patterns.

possible strategy considered was to develop a major urban "growth center" in the project area, which, if considerable effort were focussed on it might expand to a population of about 250,000 by 1990. However this strategy is rejected principally as it would be likely to be focused on and further strengthen the dominance of the west coast urban axis and reduce the rate of development at Kuantan and its port and thus not help strengthen the links between Kelantan and Trengganu and the main urban axis. In order to achieve the latter goal it is considered necessary to try to develop Pahang Tenggara as part of what the consultants refer to as "The Kuantan Region". Within this context rapid growth of 'lYiantan is desirable in order that this center -97-

can att ain sufficient size and functions in order to operate as a focus

for development -in the area. However the consultants discussed only in

passing the extent off "The Kuantan Region".

Some light may be shed on this question from origin and destination

data collected in the 1971 survey used in Chapter II. Table 5.2 shows the

total quantity of goods being shipped by road from Kuantan to Kelantan and

Trengganu and the portion of this total going to the districts of Dungun

and Kemaman in southern Trengganu and vice versa. Of the basic producer and

consumer goods being shipped north from Kuantan, a, clear majority is going

to the two adjacent districts, 60 percent of processed foods, 80 percent of

textiles, 90 percent of fuels, etc. Similarly in the reverse direction the

bulk of the traffic carrying unprocessed materials originates in the two

districts. Figures are awaited on traffic to the west of 'Kuantan to enable

a better picture to be obtained of the extent of Kuantan's market area in that direction.

Table 5.2: AVERAGE DAILY TRANSPORT OF GOODS TO AND FROM KUANTAN TO NORTH BY DESTINATION AND CATEGORY , JUNE 1971 (tons per day)

Goods from Kuantan Goods to Kuantan To Dungun To rest of Kelan- rom Dungan From rest of Category & Kenaman tan & Trengganu & Kenaman K'tan. & Trenl

Processed Foods 16.1 9.L 4.1 7.7 Textiles 1.5 0.3 0.5 0.7 Pirniture 0.9 3.2 0.7 0.2 Misc. Consumer Goods 3.7 0.1 - 0.3 Petrol, etc. 29.8 3.l 1.4 10.9 Machinery I.L 2.2 3.h Chemicals &z Fertilizer 7.0 0.1 Construction Materials 19.E8 2.3 0.7 0.7 Sawm Timber 9.0 3.0 11.7 1.7 Misc. Industrial Goods - - - Log 73.8 2.3 Processed Ruibber -- 5-3 6O'.8 Coconut. &, Oil Pal-m Prods. 0.2 - 3.1 1.11 Unprocessed food 2.7 tn213.5 8-7 Rice and grains - O.. 21 |.0

. _ - 98 -

These figures indicate that the ma,.or area of Trengganu within

which land development will take place over the next decade, lies within the area served by Kuantan and also that at its present size and level of

development Kuantan will nct be able to act as the principal focus for

development in Pahang Tenggara. In order to strengthen the role of Kuantan it has been suggested that the Kuantan-Segamat highway be constructed from north. the However this may give rise to a number of problems since a major bridge over the Pahang River is required at that end and access will thus be delayed. Additionally much of the area proposed for early development is in

the center to southwest of the region. Stress is placed in the consultants

report on the need to place emphasis on developing the local centre (Bukit

Ridan). However given the inevitable lags which will occur in ser-vice levels it seems likely that much of the early development will be to the benefit of adjacent centers to the south and west such as Segamat regardless of how the highiway is built. The qi.3stion thus arises whether alternative steps might be taken to promote growth in Kuantan and offset this trend.

Given the proximity of the main land development areas in Trengganu and the fact that they are primarily served through Kuantan suggests that growth in Kuantan might be stimulated more by development there than in Pahang

Trenggara. This would have the added advantage of providing more imnediate opportunities, both spatially and in time, to those in Trengganu. This has particular relevance in view of the fact that the mast-TWest highway and other potential new links will tend to be of greater direct benefit to Kelantan than Trengg.anu. - 99 -

One or two other steps might be taken'to promote development in

Kuantan in addition to industrial possibilities discussed earlier. The fact that Kuantan is on the east coast and therefore closer to the major south and east Asian markets of Japan, China, etc. than the west coast centres is not of itself likely to be of great significance given the ease of passage through to the west coast. On the other hand the position does have some stra.tegic implications in that East Malaysia lies across the South

China Sea. Some consideration might then be given to the possibility of establishing some defence installations in the area. Similarly routing somie of Malaysian Airlines flights from Kuala Lumpur to East Malaysia via Kuantan rather than via Johore Bahru might help remind people in business etc. that

Kuantan is "on the way to somewhere" and not the end of the line. Also at present to go from Kuantan to SingaDore to East Malaysia by air one has to travel first to Kuala Lumpur.

5.4 The Significance of Development in Pahang Tenggara In order to assess the significance of the development program proposed for Pahang Tenggara, an attempt has been made to estimate the "value- added" in the region in 1980 assuming that the project is developed as planned.

Since this was not done by the consultants the attempt was made from the summary figures contained in their report. Value added in the manor agri- cultural activities was calculated by estimating the output of these commodities in 1980 given the development schedule. An estimate of "value-added" per ton of output e.g. of oil palm fresh fruit bunches, allowing for amortization but omitting interest charges. An estimate of value added in establishment of perennial crops was obtained by estimating arerage "value-added" in total costs dur½ng the immature period. Forestry value added was obtained directly from revernues estimated by the consultants. ~100-

In the other sectors an employment based approach was used. It was

assumed as seems reasonable, that the value-added per worker in Pahang

Tenggara in 15980 will be about equal to the national average. Employment by

sector was estimated from the consultant's estimates of total induced employ-

ment in the region in 1980, and of sectoral distribution in the towns. Using

estimates of value added per worker from the Klang Valley Study, total va-lue

added in the region by sector was obtained. The resulting figures are given in Tab,le 5.3.

Table 5.3: PAHANG TE'IGGARA: ESTIMATED VALUE ADDE3D AND INCOiIE BY SECTOR IN 1980

Income as Value-Added % of Value- Sector (14$ million) Added Income Agriculture:

Oil Palm 120.7 75 90.5 Rubber 14.8 75 11.1 Other 18.3 75 13.7 Forestry 58.4 20 11.7 Mining 10.3 17 1.7 Tourism 1.6 75 1.2 Governmental services 58.1 75 43.6 Conmwrce 63.2 45 28.14. Manufacturing 32.7 4o 13.1 Transport 12.6 46 5.8 Construction 13.1 52 6.8 Utili ties 12.3 13 1.6

416.1 229.2

The Klang Valley Stbudy estimates that, the gross domestic production

in W. Malaysia in 1980 will be $17,700 million. Thus, in terms of these estimates, the value added in the region will amount to about 2.5 percent of total GDP. IHowever these estimates of regional value-added must be assumed to be generous as they assume a ranid growth of local urban centers in the area and that there will be little or no lag between agricultural and other - - 101- development. Given experience elsewhere in the country it mast be considered likely that greater lags will in fact occu_r.

It is likely that the overall development program of the country will exert great strains on the capacity to construct basic infrastrucutral facilities especially given the shortage of engineers in the Public Works Department. This may mean that a choice will have to be made between alternative infrastructural projects. Major efforts will be required to.service growth in the principal urDan centers. Discussions were held with the Klang Valley consultants to attempt to derive some relationship between infrastructural development and growth in such an. urban area. However they considered that data were inadequate to determine the impact of, for example, a given cut back on highway expenditure in the Klang Valley region on total product in the region. Thus at this stage it does-not appear feasible to obtain any good estimate of the impacts of alternative reductions in expenditure on highways in urban or rural areas.

Colnun 3 of Table 5.3 estimates household incomes in Pahang Tenggara on the basis of coeff>icients derived from the Klang Valley study. Thus in 1980. income received by residents of the area may lie between $200 and $250 million.

Using the distribution of "expenditures" by the household sector indicated in

the 1965 inter-industry accounts, Table 5.4 indicates a possible breakdown of expenditure of that part of the $230 million which might be spent on domestically produced goods. - 102 -

Table 5.44: PAHL.N^IG TENGGARA. EST:IIATES COTSIM?VTION EXPENDITURE BY l!,Gt.'TEGORY 1980 ($ million)

Sector Expenditure

Unprocessed Food 28.1 Fish 4.8 Processed Food 21.4 Beverages 2.1 Tobacco products 9.0 Textiles o.8 Clothing and Footwear 0.3 Wbod and cork 0.9 Furniture and fixtures 1.2 Books, newspapers, etc. 1.4 Leather goods 0.2 Rubber products 2.3 Chemicals 4.14 Petroleum products 0.7 Metal products 2.1 Miscellaneous manufactures 2.8

82.5

These figures should be treated with some reservation as they refer

to deliveries of domestically produced goods only, i.e. imported textiles are

not included. Thus since domestic textile production has expanded rapidly this figure of 0.8 mulst represent a significant underestimate.

However as has been seen production in the east coast states is

concentrated in agricultural and forest based industries and is likely to

remain so in the near future. In these sectors imports are smaller and the

above estimates may not be unreasonable. However some of these items e.g.

unnrocessed foods will be produced by local residents for their own use and thus actual purchases cannot be accurately estimated. Table 5.5 shows the quantities of some of these goods shipped to Kuantan from Kelantan and Trengganu, locally within the district and from other origins, as recorded by the 1971 survey Table 5. 5: AVERAGE DAILY TRN-TSPORT OF GOODS TO KUAMTAN BY CATIGORY AND ORIGIN (tons)

Kelantan &, Within Other Category Trengganu District Origins

Unprocessed food 22.2 (21-5) 13.2 Rice -and grains 25.0 (17-0) 6.9 Processed food 11.7 (8.2) 70.5 Textiles and paper 0.9 ( 2.9) 13.0 Hiousehold goods & 0.9 ( 14..6) 20.7 furniture

The within district figures are ambiguous, in that it is not known whether the shipment is from Kuantan to other parts of the district or vice versa. Kelantan and Trengganu are the major source of supply only for un- processed food and rice. In the other categories other areas of the country

supply the overwhelming proportion of the market.

Thus if Kuantan does become the main wholesaling center for Pahang

Tenggara the north-east coast may be able to capture about two-thirds of the market for unprocessed foods under ex:isting conditions. -- possible sales

approaching 15 million by 1980, a relatively insignificant quantity in terms

of expected agricultural output at that time. If Kuantan were not the major wholesaling center, this amount is likely to be correspondingly reduced.

5.5 Racial Balance On the basis of their estimates of recent migration trends, and

information on the origin of FELA settlers, the Pahang Tenggara consultants made tentative estimates of the origin and racial composition of the future -i10-

population in the region. These figures for the period to 1980 are given

in Table V.3. At that date it is estimated that the breakdown of the

population will be 67 percent Malay, 23 percent Chinese and 10 percent

Indian. Aen tbe population is broken down by those in primary activities,

and in secondary and tertiary "induced" sectors, the picture as in Table 5.6 is seen.

Table 5.6: PAHANG TENGGARA. ESTIKATEDPROPORTIONATE BREAKDOWN OF POPULATION BY a4PLOYMENIT SECTOR AND RACE

Sector Malay Chinese Indian

Primary 86 7 7 Induced 40 45 15

Thus the likelihood appears to be that the primary sector of the

economy will be overwhelmingly Malay or, put another way, the Malays will be predominantly engaged in primary activity. While this activity will be at a higher level of output per man and income than their current employment there will be some danger that the existing structure in the east coast states will be reproduced. The consultants aim to promote rapid growth of urban centers in Pahang Tenggara is an attempt to offset this by generating a wide range of economic opportunities. However this problem does raise a wider issue in terms of the country's regional development.

At the present time approximately 25 percent of the country's national product originates in the Klang Valley Region. It has been estimated in the Klang Valley study that even with the most generous estimates as to growth in other centers, this proportion will rise to almost one-third by 1990. - 105 -

At present there is considerable migratiun into the area, which appears to be predominantly Malay and the Malay proportion of the population in the

Klang Valley region is rising. As of 1970 it was estimates at 28 percent.

It is inevitable that incomes in the Kuala Lumpur region will remain at levels above the national average, and as the country's political and business center, the major new activities developing in the economy will originate there. It will thus remain the center offering the widest range of economic opportunities to its inhabitants and those with the greatest potential for future growth. The expected increased concentration, accom- panied by migration has the advantage that it exposes an increasing proportion of the Malay population to these opportunities. Restriction of growth in this area will mean a diversion of Malay population movements to other areas and continued non-Malay dominance of the most dynamic center in the country.

'This effect could be offset somewhat if non-Malays could be attracted to opportunities elsewhere. As has been seen -the major opportunities for new agricultural development lie in the states of Trengganu, Pahang and Johore.

However the major land development programs in these states have been drawn up primarily to cater for Malays, principally since FELDA has not been, and

FELCRA probably will not be, attractive to non-Malays. As a result there is pressure on rural Chinese to go to urban areas to obtain employment. Given this problem it would appear worthwhile attempting to devise means to attract lower income Chinese and Indians into land development, principally by making land more e?sily available to them. The Ministry of National Unity is current- ly undertaking a study of the New Vill.ages and a policy of the above type would be a valuable outgrowth of this. 1o06-

Table II.1: MALAYSIA POPULATION BY STATE AND DISTKICT 1957 and 1970

m4ale/F~em-aie PFpulation p Districts Ratio 1957 1970? Change (1970) JOHORE

Baha Pahat 196 976 249,869 26.8 Johore .963 Bahru 158,34L3 271,4L8 71t4 1,053 Kluang 91,884 133,317 45.1 1,048 40,397 61,4o6 52.0 1.120 25,931 34,620 33.5 Muar 1.033 221,003 279,3261 26.4 .968 Fontian 99,087 117,622 18.7 Segamat .992 93,944 126,447 34.6 1.008

Total 927,565 1,273,990 37.3 1.008 KZDAHT

Baling 67,683 l14,307 54.1 1.036 Bandar Bahara 29,351 33,194 13.1 .997 Kota Setar 221,907 302,539 36.3 .997 Kuala luda 121.242 159),977 31.9 1.025 Kubang Pasu 89,221 118,587 32.9 Kulim 1.033 72,429 88,447 22.1 1.010 Pulan Langi ani 16 ,535 23,856 44.3 Padang 1.o05 Tarap 14.531 30,360 108.9Q 1.052 SIK 19,578 39",061 99.5 1.047 YAJI . 49,165 55,046 11.9 .950 Total 701,643 955,374 36.2 1.012 KELANTAN

Bachok 51,520 62,191 20.5 Kota Baharu .94/9 150,884 208,076 377.9 .983 39,440 51,637 30.9 .970 Pasir Mas 82,847 100,734 21.6 Pasir .962 Puteh 53,866 70,243 30.4 .939 Tanah Merah 32,099 57,444 79.1 1.016 Tumpat 60,365 73, 155 21.2 Ulu Kelantan .952 34,564 57,218 65.5 1.089 Total 5Q5 ,585 680,626 34.6 .979 MALACCA

Utara 80,534 114,6o3 42.3 .945 Selatan 60,539 84,858 40,2 Tengah .959 150,173 204,261 36.0 .962 Total 291 .2LO 403,722 38.6 .957

Continued..... LppU±LaU±11 Dy bmaze and District 107.

Male7Female Populaticn Ratio Districts 195-7 970 Change (1970) NEGRI SEMBILAN

Jelebu 23,325 32,905 41.1 .986 Kuala Pilah 96,255 114,798 19.3 .0971 Pbrt Dickson 53,484 76,187 42.4 1.149 Rembau 34,328 39,708 15.7 .913 129,206 167,913 30.0 .997 Tampin 27,733 L7,801 72.4 1.033

Total 364,331 L479,312 31.6 1.009 PAHA;G

Benton 37,235 56,098 50.7 1.o63 12,102 15,852 31.0 1.iOo Jerantut 36,856 1.111 Fuantan 52,117 96,854 85.8 1.126 Lipis 58,317 50,6914 50.1* 1.056 Pekai h42,688 69,355 62.5 1.061 Raub 37,613 57,394 52.6 1.024 Temerloh 72,872 120,028 64.7 1.073

Total 312,944 5•)3,131 60.8 1.076 PENANG and P. WELLESLEY

1'angah 75,330 117,759 56.3 .995 UItara 110,841 161,605 45.8 1.014 Selantan 47,063 63,646 35.2 .991 Timor Laut 291,891 373,086 27.8 .994 Barat Daya 47,007 60,674 29.1 .998

Total 572,132 776,770 35.8 .998 PERAK

Batang Padang 98,796 119,590 21.l4 1.019 Dindings 95,170 127,885 34.4 1.010 Kinta 367,139 4.82,567 31.4 1.008 Krian 117,530 153,631 30.7 .991 Kuala Kangsar 151,200 186,261 23.2 .968 Larut dan Matang 17l4,357 221,061 26.8 1.002 Hilir Perak 173,599 211,168 21.6 .996 Ulu Perak 13,599 6o,403 38.5 1.069

Toal 1. 21 ,390 1,562,571 27.9 1.002 .PERLIS

Perlis 90,.66 121,062 33.2 1.000

* The district of Jerantut was created from Lipis. Percent of change shows growth of combined population of Lipis and Jerantut (1970) compared to population of Jerantut (1957). Continued

- 4 vS D>trsi:r:lW,'mC-aff'wr f 7'->'7 SS@drTz7rZ4fii L ua,..woh;'>aX l''Xa r t'S;aer,'.tnLi-9iu4i YSs. 't 7.rl&iSarUs7rs@ :«r > 'zW t#::im}-4' Malaysia Population by Otate and District 108.

Male/Female Population % Ratio Districts 1977 1970 Change (1970) SELANGOR

Kelang 149,957 232,863 55.3 1.068 Kuala Langat 79,75)4 107,212 34.4 1.024 Kuala Lumpur 477,224 875,772 83.5 1.066 Kuala Selangor- 154,808' 135,388 37.8* 1.0o42 Sabak Bernam 77,956 1.000 Ulu Langat 68,214 96,338 1.2 1.02)4 Ulu Selangor 82,934 103,857 25.2 1.011

Total 1,012,891 1,629,386 60.9 TRENGGAIU

Besut 53,326 79,228 )48.6 .992 Dungun 30,69S4 54,352 77.1 1.008 Kemaman 32,580 44,916 37.9 1.037 Kuala Trengganu 12)4,333 173,907 39.9 .950 Marang 1h,SSo 19,684 35.3 .958 Ulu Trengganu 22,682 33,66)4 48.4 1.010

Total 278,16e5 405,751 45.9 1.012

* Represents growth of Kuala Selangor and Sabakc Bernam combined. - 109 -

Table II.2: W. MALAYSIA - PROPORTION OF POPULATION AGED 15-64 EMPLOYED, UNEMPLOYED AND OUTSIDE THE LABOR FORCE *BY REGION, 1967

Total Status South Central S. West North East W. M'sia. Emnployed 59.6 57.8 58.6 52.0 67.3 59.0 Unemployed 6.3 5.8 5.6 6.2 5.2 5.8 Outside the labor force 34h0 36.4 35.8 41.8 27.5 35.2

Participation Rate 30.8 31.hl 32.0 26.2 36.0 31.2

Table I-3: W. MALAYSIA - PROPORTION OF POPULATION AGED 15-64 EMPLOYED, UNEMPLOYED AND OUTSIDE THE LABOR FORCE BY REGION AND SEX, 1967

Males - Females N. E. W. N. E. W. Status Zone Zone M'sia. Zone Zone M'sia.

Ernployed 77.4 84.2 80.6 27.0 50.7 37.8 Unemployed 7.6 5.2 6.3 4.8 5.2 5.3 Outside the labor force 14 .9 lo.6 13.1 68.3 44.1 56.8 -110-

Table IIL4: W. XALAYSIA, PROPORTION OF PERSONS OUTSIDE LABOR FORCE BY OF REASON OF NOT WOKI&G FOR JOB BY REDION, 19, r-68

Total Reason for not V,est .looking South for job- Maaysia Suth Central West North East Student 18.7 19.1l 18.93 19.77 15.7h 17.18 Rentier o.65 0.54 1.02 0.23 0.64 1.02 Disabled .. 3.08 2.96 3.73 2.36 2.35 4.86 Housewife (Incl. 66.h3 66.53 House worker) 64.67 68.21 67.51 63.82 Think to hold/ 6.18 8.27 not necessary 5.92 6.31 5.18 5.30 to work

Retired 0.83 0.92 1.08 0.82 0.79 o0.7 Others 2.23 1.58 2.49 1.88 2.04 3.60 One not working 2.42 0.o6 due to off 2.16 0.42 5.74 3.74 season

. ./ Table II.5: PROPORTION OF THOSE AGED 15-64 OULSIDE LAOR BY REASON FORCE OF iNOT LOOKING FOR JOB, BY S3t AID SEECTED REGIONS, 1967-68

Total Reason for not West Malaysia East looking for-job Males Females North Males Females Males Females Student 58.65 9.05 57.64 7.65 50.54 8.21 Rentier 1.65 0.42 2000 0.79 1.53 O.45 Disabled 9.51 1.63 12.37 3.09 8.58 1.01 Housewife (Ihel. 1.05 81A.17 1.71 House worker) 78.45 o.61 81.98

Think to hold/ 11.29 5.03 6.27 not necessary 5.07 7.68 4.64. to work

Retired 3.93 0.i14 2.19 0.07 4.17 0.05 Others 6.85 1.19 9.01 2.33 7.47 0.87 One not working 7.o6 1.38 8.81 2.54 du-e to off season 19.42. 2.78 112.

Table 11.6: W. mkuYSIA. PROPORTION OF VeMfLYE:D BY INDUSTRY AND REGION 1967-68

South Industry Total South Central Iest North East

Agriculture, Forestry, Hunting and Fishing 21.2 10.1 22.2 9.2 29.4 37.3

Agricultural Products Requiring Substantial Processing 30.4 5G.2 26.8 29.8 21.1 2h.2

Mining and Quarrying 3.0 .8 7.4 h.1 .7 2.0 ?fanufacturing 9.1 7.6 8.6 10.9 9.0 8.9 Construction 3.3 2.4 3.6 4.9 2.9 2.4

Electricity, Gis, Tiater and Sanitary Services .9 .7 1.2 1.3 1.0 .5

Commerce 10.8 9.2 10.1 12.4.a 12.8 9.3

Transport, Storage, and Communication 3.6 2.6 2.6 5.1 5.0 2.6

Services 17.5 16.2 17.5 22.1 18.1 12.6 Industry not Specified .1 .1 - .3 .1 .2

Total 99.9 99.9 100.0 100.1 100.1 100.0

Table I1.7: WEST MALAYSIA. PROPORTION OF EMPLOYED BY SOCIO-ECONOMIC GROUP AND REGION 1967-68

Total Socio- Economic West South Group Malaysia .South Central West North East

Gov't Dept. or Statutory Group 13.1 11.4 13.3 16.9 12.9 10.1 Small Holding Agriculture 22.5 23.2 23.1 12.5 26.0 30.3 Cwner Operator 10.7 9.8 10.6 6.o 10.6 17.2 Operator h.5 1.5 2.9 1.4 6.7 10.6 Wage EArner 7.3 11.9 9.6 5.1 8.7 2.5

Family Wqorkers without Pay 14.9 11.9 15.7 7.1 17.6 23.7 Estate Worker 13.2 24.3 8.9 19.L 5.9 6.o Other Agricult,ure 2.8 2.6 3.0 1.2 3.8 140

Private Company, Partnership or sole Fropietorship other than Agriculture 30.4; 23.6 33.3 38.8 30.3 24.1

Domestic and Personal 2.8 2.6 2,5 3.8 3.3 1.7 Services Others 0.3 .3 .3 .3 .2 .2

Total 100.0 99.9 100.1 100.0 100.0 100.1 - 113 -

Table II.8: MALAYSIA AND EAST REGION-PROPORTION OF EMPLOYD BY SEX, AND EMPlYMENT STATUS 1967-68

West Malaysia East Region All Races All Races Eknployment Status Persons iMles Females Persons 1hles Females

1. Employers 2.4 3.4 .5 1.0 1.6 .3

(i) Owner Operators Hiring Labour 1.7 2.4 .4 .8 1.2 .3

(ii) Working Partners Hiring Iabour .7 1.0 .1 .2 .4 -

2. Own Account Workers 25.6 29.1 18.4 43.9 50. 4 33.2

(i) Owner Operators not Hiring labour 24.2 27.? 17.9 41.7 47.0 33.1

(ii) Working Partners not 1.4 1.9 .5 2.2 3.4 .1 Hiring Labour

3. Employees/Apa e and 57.0 60.2 50.2 31. 4 39.1 18.9 Salary Earners

4. Unpaid Helpers/Unpaid 15.0 7.3 30.9 23.7 8.9 47.7 Family W4orkers

Total 100.0 100.0 100.0 100.0 100.0 100.1 1 14.

CZS ON'.c53TIC FRccNcr (AT/fACTCR/ccT) CFVET t,LAYSIA - 1965 Ai04ATIVE 01T2RI2V1TQJ BYSTATES (Mttfc, of Coliars)

,r *.inini- t: :r,d *Mawfaclvrish r,>u)l £Etc.ricitj tir anu,prt S fiTIES *ncltsatsa, i.rt .^¢nc til: !r- tclt L q!;rryi7 . > T(Al ;..I;:1; F it'r' r c.ta I ilier and mCcAini-e),rCt 'rada and and Foli;. Servicts fiSshin i .- g (G) (b) (c) (d) (a) (f) (g h 1 Jcl!c-E 410 J)(k) (l) (. h 40 100 33 13 26 17 51 77 767 13.9 954 KUa3 21 2 8 27 14 3 13 4 27 43 351 6.4 437./ t..J. uLiiAlN 90 6 12 7 2 9 ~ 3 22 27 1i 3.2 ; - 41 F'.U CCA is 1 17 9 3 7 15 16 27 183 3.3 228 t 1 s2.I1SEIILAN 69 16U9 6 64 17. 6 14 10 33 36 355 6.4 "lI ;. 107 REb PG 129 72 25 19 3 11 i 2i 28 117 5.7 394 . 7 , 02; I.G- P.Y. 9e 115 1 69 30 13 32 129 32 61 465 8.4 PU.a. 57. ;3J / 5$ 376 276 84 59 32 35 33 74 1061 19.Z 13 I.-, PERL IS 22 j 1CI1 2 2 3 -2 9 0.8 55 57 SEU- R 296 146 Z96 117 55 55 312 194 139 1650 .a8 5O2 . / 182 '1' (hEh1A 40 6 .7 1 s 4 14 18 159 2.9 158 (5 TOTAL: 19., 598 702, 315 131 249 531 493 557 5,530 103.0 WEe * 100

B oa up prcrprti.naLly tc the Sub-tUtals.LlbJn W) * For discrc;zrcy bitvewn this tctal and Na cnal Acccwnts see Section 3 cf the Appendix. BBased bnpvfulaticn estinAtes at Afd-1965 (0iOart'mcit of 4tati.tics).

. , - ...... ------.--- - t

- 115 -

TABLE 1Wj I .

VALUE ADDED IN PRODUCTION SECTORS AND GROSS DOMESTIC PRODUCT FOR STATES OF WEST -AYSIA, 1965 (1vM1rmillion) Negri Industry Jo,hore Kedah Kelantan Malacua Sem4ilan Pahang Penang Perak Per/is Selangor- invu Total . I.Agriculture. Forestry and Fishing 407.3 234.1 112.3 87.5 177.9. 143.8 82.5 '363.4 2;8 254 6 ,.8 1.95S? a) Coconuts and copra 14.3 3.2 14.5. 1.3 0.6 1.5 4.6 18.0 0.3 12.7 0 63.0 b) Palmn oil estates 37.0 - - - 2.0 3.0 - 20.0 - 28.0 90.0 c) Tea estates . - - - - 4.6 - 0.3 - 2.1 7.0 d) Rice production 1.3 63.9 21.1 4.7 6.4 4.4 8.8 17.4 13.0 9.7 3 1570 e) Miscellaneous crops 52.0 12.6 22.8 - -- &.5 - 4.4 23.1 6.1 62.2 5.4 23.5 * 4 233 0 f) Livestock production 15.3 31.3 19.5 10.4 17.2 8.5 15.8 269. 5.1 11.2 . 3 170 0 g) Rubber planting 246.4 111.1 37.4 62.6 1.3.4 61.6 29.3 159.6 2.0 145 4 2 1.0 I 0 0L h)- Forestry and logging 21.0 5.0 4.0 - 8.0. 33.0 - 10.0 - 5.0 0 91.0 i) Fishing 20.0 7.0 3.0 2.0 0.9 4.1 17.9 49.0 3.0 17.0 1 135 0 2.Mining and Quarrying 31.7 7.2 7.1 1.2 6.0 64.0 - 291.2 3.0 1507 9 598 0 3.Manufacturing 99.5 26.6 11.9 16.8 63.8 25.2 68.7 84.2 2.1 296 t; 6 701 0 I. Construction 29.9 8.8 5.1 7.9 15.1 15.1 35.9 56.7 1.9 134 5 1 315 0 5.Electricity, Water andSanitary 13.5 1.6 2.0 5.1 5.8 2.2 11.4 17.8 0.2 70.6 8 131 0 6.Transport, Storage and , Communication 27.1 12.9 7.0 7.0 12.9 10.0 35.1 40.1 2.0 89 0. 2490 7.Wholesale and Retail

Trade 108.6 53.3 31.9 42.0 53.3 53.3 158.7 181.0 10.6 350 . .3 1.06.5..0 8. Banking, Insuraace and

Real Estate 8.0 3.1 2.1 4.1 5.1 3.1 16.3 -17.3 - 49. 00 9.Ownership of Dwellings 39.6 12.8 5.4 7.8 14.0 12.5 38.1 39.0 1.5 124 C 3 298 0 IO. Public Administration and DeFance 60.6 43.4 33.5 22.2 28.1 22 2 38.0 82.8 5.4 4 c. 8 493 0, 111.Education. 47.9 29.0 15.9 18.0- 22.9 14.9 32.9 57.6 4.0 509 VI.0 3050 12.Medical and Health 16.0 7.0 4.0 6.0- -7.0 5.0 17.0 20.0 0.9 32.1 2.0 117.0 13. Recreation and Entertain. * '' ment 2n 1.1 0.5 1.0 1.4 1.2 3.6 4.5 0.1 7.2, 0.4 23 0 14.Other services 65.2 41.6 28.0 24.2 30.4 22.2 47.3 85.0 5.3 118 3./ ,5 :u-:48302 . Gross Dornestic Product 956.9 482.5 266.7 251.4 443.7 394.7 585 5 1,340 6 65 8 1.8G9 7 .,5 6 :5 0 Total population in thousands 1,224 877 639 387 484 401 717 1.553 112 1.326 8.0 76 Gross Dornestic P7roduct p-.r capita S 782 550 417 650 917 984 817 8G3 5ti'; 1 l ( ' .2it* TABLE 0;4;

VALUE ADDED IN PRODUCTION SECTORS AND GROSS DOMESTIC PRODUCT FOR STATES OF WEST M.ALAYSIA, 1968 U.'S million)

Negri I,7dLI$ry Johore Kedah Kelantan Malbcc3 S-Y- tijl P.-3lang Penang Penrk Perlis Selingor rrenggrnu rotal 1. Agricufture, For".try and Fishng 39S.7 273.9 109.9 88.1 173.0 182.9 90.1 383.5 30.4 Z5,1 5 86.8 ZM, a) Ccccnuts and copra 17.3 3.7 5.6 1.5 0.7 2.1 4.3 9.3 0.4 12.1 2.4 59.4 b) Palm oil estates 43.6 1.2 2.2 . 1.2 3.8 5.1 1.3 17.5 - 31.1 3.9 110.9 cl Teaes-ates - - - - - 4.9 - 0.6 - 1.6 - 7.1 d) Rice production 1.6 82.1 15.0 5.3 5.9 7.7 11.6 26.2 19.7 .*4.6 7.3 197.0 e) M,iscellineouscrops 61.9 12.1 18.2 2.6 4.0 24.2 5.4 60.0 0.7 21 6 26.3 237.0 fl Livestcck prcduc:ion 20.3 26.5 21.9 9.1 26.3 . 8.9 22.2 28.4 3.2 19.1 7.5 193.4 9) Subber pla.-ting 216.7 109.3 35.2 66.8 123.7 E6.9 23.5 137.3 1.8 117A4 14.4 90c3 0 h) Farest-y and fogging 15.7 12.0 6.3 0.3 S.1 67.7 - 19.4 0.3 6.1 3.G 145 0 il Fishing 21.6 27.0 5.0 1.3 0.5 5.4 21.8 84.8 4.3 33.9 16.4 225.0 2. &I-ining and Quarrying 18.8 5.6 5.1 0.5 4.0 59.8 - 251.0 2.0 129 3 30.9 507 0 Jb 3. IV.anufzcturing .114.1 20.2 13.8 12.4 79.8 22.1 84.6 100.3 1.0 47!.1 4.6 92 ' 0 4. Cons-ruction 18.6 51.9 7.5 4.7 33.5 15.4 40.5 38.3 1.1 143 9 2.5 353.0 S. Electrici:y, Water and Si ni:ary 19.0 2.4 2.5 7.1 -3.0 2.7 13.9 22.4 0.4 101.5 1.1 181.0 6. Tran-port, Storage and Cornrnunic.:ion 33.6 11.3 6.4 8.3 13.7 10.7 35.9 33.0 1.9 103.4 4.8 26.r> 7. Whorl^zle an.d RctaitTrade 150.0 96.0 37.2 30.0 76,.8 73.8 118.8 211.2 9.6 7iOO 33.6 1,%0 8. Eanking, Insurance and Reda.Es:a.e 13.3 4.3 2.4 5.5 6.5 6.4 17.8 21.0 0.4 71.9 1.5 14;3 O 9. CwnLrs,iO of Dwcltin,s * 7.8 4.5 4.9 8.4 24.9 45.7 52.8 I14 1 0.7 324 0 10. -*J'. iArndministratianr and C* .1c 74.3 53.0 38.6 23.6 29,4 24.8 42.6 93.3 69 1C7 C 21.9 570i 0 117 EdcJntiC' 57.7 -8,3 25.3 19,7 238a 20.1 33 .G3.3 52 5'4 14.9 372.Q', 44.4 6.3 3 0 *63 7.3 4.5 10a 22.9 1.0 * 54.7 20 O ll0 13. RS..cre.ation irid Entertain- . -' mont 1.8 1. * .0.4 . *1.Q 1.2 1,1 3.7 , 4.2 0? t' 0.1 220 .' 14. Other s^:rvices 78.5 52.5 3"I 0 27.1 33 0 26 6 52.5 1C0 3 7.1 lb5 2 0 5 0 0 Gross Domesiic Product 1.023.0 624.6 292.6 245.2 489.5 478.8 598.5 1,403.0 67.2 2.2:1i. 1 2 2G.,; 7,(>J. ; Tota' population in thou!;ands 1,336 952 696 4 3 524- 439 770 1.632 121 1.455 390 8.78s Product 7 60ross 9or538stc per capita S; 766 655 4;!0 SS0 934 1,091 777 8 34 555 1.537 580 874 - 117 -

Table 11.11 (a): W. YIAYMSIA TURNOVER IN DISTRIBUTIVE TRADES B- CATORY ANID RDION, 1966

Turnover ($ million) Region Catering Retailing Wholesaling Total

Southern 50.2 470.4 705.22 1225.8 Central 107.7 670.9 1770.3 2548.9 North-Central 58.9 403.6 763.3 1226.1 Northern 37.7 347.0 lolo.6 1395.3 Eastern 32.2 2h7.1 247.1 526.4

Total 286.7 2138.9 4496.8 6922.4

Table II.11 (b): W. IIALAYSIA PER CAPITA TURNOVER IN DISTRIBUTIVE TRADES BY CATEGORY AND RDION, 1966

Turnover ($million) Region Catering Retailing Wholesaling Total

Southern 32.9 308.0 461.5 802.2 Central 58.5 364.6 962.1 1385.3 North-Central 140.8 279.7 529.1k 849.7 Northern 22.3 205.6 598.7 826.6 Eastern 22.8 175.2 175.2 373.3

Total 36.3 270.5 568.6 875.4 Table II.12: W. MALAYSIA (SELECTED STATIS) % DISTRIBUTION OF HOUSING UNITS BY TYPE, 1970

Total Kelan- Tren- Selan- W. tan gganu Malacca gor M'sia. Private: House/Bungalow Detached 844.6 86.7 66.4 145.3 614.7 Semi-Detached 4.6 3.3 7.3 lo.14 7.4 Terrace, Row 2.4 2.0 10.2 16.3 9.1 Total .91.6 92.0 83.9 72.0 81.2 Flat or Rioom In or Attached to House .14 .1 .14 1.6 .8 In Shophouse 3.7 3.1 5.1 6.o 5.0 In Housing Block .4 .5. 1.14 5.3 2.0 Other .1 .2 .2 1.5 .5 Total 14.6 L4.5 7.1 14.4 8.3

Labouir Lines 2.0 1.3 6.6 8.2 7.1 Mskeshift, Improvised Hut 1.1 1.1 1.0 3.7 1.9

Total Private Living Quarters 99.3 98.9 98.6 98.3 98.5 Non-Private:

Hotel, Lodging House, etc. .1 .2 .2 .4 .3 Hospital - - - - Educational Religious or Chariable Inst. .1 .1 .2 .1 .1 Temporary Labour Camp .1 .2 .1 .1 .2 Other - .1 .1 .3 .2

Total Non-Private Living Quar-ters .3 .6 .6 .9 .8 Not Intended for Living/Sleepirng: In A Permanent Building (e.g. Mosque, Office, Shop) .3 .4 .7 .6 .6 A Living Space .1 .1 .1 .1 .1 A Natural Shelter - - - .1 .0 Total Not Intended for Living/Sleeping .4 .5 .8 .8 .7

Grand Total 100.0 100.0 100.0 100.0 100.0

- ,,-. --...... - 119 -

Table II.13: W. MALAYSIA (SELECTED STATES) % DISTRIBUTION OF OCCUPIED PRIVATE LIVING QUARTERS BY TYPE, 1970

Total Tren- Wbst of Living Quarters Kelantan gganu Malacca. Selangor Malaysia

Private Living Quarters: House/Bungalow

Detached 86.3 88.4 69.0 47.o Not Available

Semi-Detached 4.4 3.2 6.9 10.6

Terrace Row 2.1 1.7 9.7 15

Total 92.8 93.3 85.6 73.5

Flat or Room

In or Attached to House .L .4 .4 1.6

In Shop House 3.7 3.4 5.3 6.2

In Housing Blockl .3 .5 1.3 5.3

Other .1 .2 .3 1.5 Total 4.5 4.5 7.3 14.6 Labour Lines 1.8 1.2 6.1 8.2

Makeshift, Improvised .9 1.0 1.0 3.7

TotaL Private Living Quarters 100.0 100.0 100.0 100.0

II -- ,, - 120 -

Table IT.14: W. MALAYSIA (SELECTED STATES) % DISTRIBUTION OF OCCUPIED PRIVATE LVi:NG QUARTERS BY CONDITION AND PERIOD OF CONSTRUCTION

Totai Tren- Selan- W. Kelanta- gganu Malacca gor M'sia. Condition of Occupied Private Living Quarters (%) Sound 62.9 62.7 75.7 80.2 73.3 Deteriorating 29.6 29.7 19.8 17.5 22.3 Dilapidated 7.5 7.6 4h5. 2.3 4.4 Total 100.0 100.0 100.0 100.0 100.0

Period of Construction of Private Living Quarters (,.

0 - 4 years 26.4 27.7 19.0 25.9 23.7 5- 9 years 22.8 25.3 18.3 19.7 20.0 10 - 23 years 37.9 31.9 37.0 37.6 37.7 30 - over 9.4 8.4 19.1 10.3 12.5 Not known 3.5 6.7 6.6 6.5 6.1 Total 100.0 100.0 100.0 100.0 100.0 -121-

Table II.15: W. MALAYSITA (SELECTrED STATES) % DISTRIBUTION OF OCCUPIED PRIVATE LIVING QUARTERS BY TYPE OF COOKING FAGCILITIES

Total Tren- West Cooking Facilities Kelantan gganu Malacca Selangor Malaysia

E~xclusive to the Living Quarters:

Separate Kitchen 65.9 49.2 73.2 75.7 69.4

Area Set Aside for Cooking 29.7 42.4 20.7 15.9 23.0'

Total 95.6 91.6 93.9 91.~6 92.4

Shared with Other Living Quarters:

Separate Kitchen .3 .3 .8' 1.6 .9 Area Set Aside for Cooking .5 .8 .4 .7 .6

Total .8 1.1 1.2 2.3 1.5

No Spe ial Cooking Fac-ilities 3.6 73h96.1 6.1

Grand Total 100.0 100.0 100.0 100.0 100.0 - 122 -

Table II.16: 'W. MALAYSIA (% DISTRIBUTION) OF OCCUPIED PRIVATE LIVING QUARTERS BY TYPE OF WATER SUPPLY

Total Tren- Water Supply W. Kelantan gganu Malacca Selangor Malaysia Exclusive to the Living Quarters:

Piped Water Inside Living Quarters 9.8 8.0 38.9 50.8 32.6 " Outside " .7 .2 2.7 3.0 2.8 Total Piped Water 10.5 8.2 41.6 53.8 35.4 Well or Pump 32.6 30.2 20.1 15.1 22.6 River .2 .4 .1 .3 .4 , Drain, Canal - - .1 .4 .3 Other - .2 .1 2.1 1.3 Total Exclusive to Living Quarters 43.3 39.0 62.0 71.7 60.0

Shared with other Living Quarters

cluding Coummunal Facilities):

Piped Water Inside Living Quarters .3 .2 1.1 1.5 1.1 " Outside " " 2.6 3.2 6.9 14.9 10.9 Total Piped Water 2.9 3.4 8.0 16.4 12.0 Well or Pump 46.3 48.4 29.0 7.8 20.5 River 7.0 8.6 .3 1.3 5.2 Parit, Drain, Canal .3 .3 .2 1.0 1.3 Other .2 .3 .5 1.8 1.0 Total Shared 56.7 61.0 38.0 28.3 40.0 Grand Total 100.0 100.0 100.0 100.0 100.0 - 123 -

Table II.17: W. MALAYSIA (SELECTED STATES) % DISTRIBUTION OF OCCUPIED PRIVATE LIVING QUARTERS BY TYPE OF BATHING FACILITIES

Bathing Facilities of Occupied Total Private Tren- Selan- Livring Quarters W. (%) Kelantan gganu- Malacca gor Malaysia Sep. Bathroom or Enclosed Sace:

Built in Tank and/or Enclosed Well 5.6 3.2 25.3 7.1 Longbath 3.5 .14 .7 4.2 30.7 Shower 23.3 1.3 1.0 3.2 14.6 2.14 Hand Basin .6 .8 1.9 Moveable 3.3 1.9 Jar, Container 3.2 4.6 17.3 20.14 Pipe Only 15.7 3.4 3.14 5.14 7.4 5.2 Total 114.5 13.7 57.3 73.5 52.0 No Separate Bathroom:

Pipe Inside Living Quarters 1.1 .9 2.3 2.3 1.8 " Outside 2.6 - 2.5 3.3 Well 6.2 14.6 or Pump 73.4 72.4 36.1 River 13.2 31.9 8.1 10.1 .5 Parit, 2.3 7.0 Drain, Canal .2 .2 .2 Other 1.5 2.0 .1 .2 .3 1.0 .7 Total 85.5 86.3 42.7 26.5 148.0 Grand Total 100.0 100.0 100.0 100.0 100.0 Bathin Facilities (Whether or Not Shared) %

Bathing Facilities Exclusive to Living Quartc-s 143.0 40.0 68.6 79.14 614.8 Bathing Facilities Shared 57.0 60.0 31.L4 20.6 35.2 Total 100.0 100.0 100.0 100.0 100.0 Table II.18: W. MALAYSIA (SELECTED STATES) % DISTRIBUTION OCCUPIED PRIVATE LIVING QUARTERS BY TYPE OF TOILET FACILITIES

Toilet Facilities of Total Occupied Private Tren- L Q W. Kelantan gganu Malacca Selangor Malaysia Exclusive to Living Quarters %: Flush 4.2 5.0 15.2 33.0 16.1 Bucket .4 2.6 12.9 10.2 11.1 Pit 1L.7 11.9 30.9 25.7 24.5 Over-River/Sea .7 .8 2.0 1.6 1.9

Total 20.0 20.3 61.0 70.5 53.6

Shared with other Living Quarters (IncludinCg Coumnal Facilities( Flush .6 .8 1.3 3.4 2.5 Bucket .5 1.9 2.7 8.7 6.2 Pit 8.9 5.0 13.0 8.4 9.5 Over-River/Sea 9.2 5.8 6.6 3.8 8.2

Total 19.2 13.5 23.6 24.3 26.4 No- Toilet Facilities 60.8 66.2 15.4 5.2 20.0 Total 100.0 100.0 100.0 100.r0 100.0 - 125 -

Table II. 19: W. MALAYSIA (SELECTED STATES) % DISTrIBUTION OF OCCUPIED PRIVATE LIVING QUARTERS BY TYPE OF LIGHTING

Total Lighting of Occupied Tren- W. Private Living Quarters % Kelantan gganu Malacca Selangor Malaysia Electricity

Public Supply 17.6 18.1 49.5 56.9 40.2 Private Generating Plant .9 1.8 3.1 4.3 3.5

Total Electricity 18.5 19.9 52.6 61.2 43.7 Pressure/Gas Lamp 4.h 5.5 14.6 12.9 Oil Lamp 9.6 76.6 74.0 32.6 25.7 Other 46.5 .5 .6 .2 .2 .2

Total 100.0 100.0 100.0 100.0 100.0

Table II.20: W. MALAYSIA (SELECTED STATES) % DISTRIBUTION OF OCC(TPIED PRIVATE LIVING QUARTERS BY NIMBER OF ROOMS

Total No. of Rooms of Occupied Tren- W. Private L.iving Quarters % Kelantan gganu Malacca Selangor Malaysia Rooms

1 42.4 60.9 30.3 2 26.2 36.7 42.2 25.6 30.1 29.2 3 29.9 11.1 9.5 19.2 20.0 4 16.5 3.0 2.5 11.1 13.6 9.3 5 .8 .8 5.3 6.0 6 4.2 .3 .3 2.2 2.9 1.9 7 .1 .1 .8 8 1.0 .7 - .1 . .5 . 9 - - .2 10 and over .2 .1 .1 .1 .h .4 .3

Total 100.0 100.0 100.0 100.0 100.0

I :+.rrr.::.vrSgvSi.A...:iwaS s ~IKNx:S>...... vi~ueSdLJSAvr>Et...... s:b<.- - 126 -

TabJle II. 21: W. IMALAY."SIA (STL',GTZ` ... A.33) ) )ITCT'IBTJTTO .jOF 0CWCUPLTT:lD PRiL-ItTE JIVIINAI,- QUARTE13S 13Y CONtSTRLICTIOI1 OF WALLS

Total I,ate-ial- of Oiiter W1lls of Tren- W. Occuui.id Priv;.te Livin. 7tuamrt-ers Ke.lantan gganu l1,T1cca Selancor N1alaysi. Brick 1.2 1.0 13.5 Concrete 18.5 9.9 2.2 2.3 6.2 13.9 6.8 ' Brick and Plzank . . 1.0 5.6 10.7 PlaWwlt only.. . ' . . .. 63.1 81.0 73.9 5l4.5 66.8 Attap, Woven Bamiboo, etc. 18.) 6.2 .5 1.8 5.Q Zinc, Corrugated Iron 3.6 .3 Other ,1 .3 8 9.8 8.2 .2 2.9 Total 1(00.)0 100.0 100.0 100.0 1CO.O

Tabl.e I1.22: W, MPkLAYSIA (SELELCTE.4D STATE-S,) . J)I 3!IfBUTIO)`S 0?F OCCUPIED LITI1i'G QtJA2tL:t BY CONSTf;,.iT2-20?T OF ROO)F

Total 1I11aterTill oL Roof of Tr^n- OCi:ied . W. lrrvat,lPr5 T,f-v,,w ('.rtor KeU*i.n.ri .:--Lacca .8olrmnor IaThysia Tiles ).t9 43.5 16.2 22.7 19.6 Att7,,, llcven lTh:,:h-oc Etc. 35.1 3J55 37.9 Zinc, Cor.rugated 12.1 27.5 ircn 13.0 10.8 34.1 48.9 Asbestos Sheets Itl .4 5.6 7.4 10.0 9.0 8.5 Concrete .6 1.1 1.7 Other 7.2 2,5 .8 1.6 .1 .1 .5 Total 100.0 100.0 100.0 100.0 100.0

...... -127-

Table II.23: W. YSALAYSIA. (SELECTED STATES) AVERAGE NJIBMR OF ROOMS PER OCCUPIED PRIVATE LIVING QUARTME BY TYPE

Total Av. No. Rooms per Occupied Tren- W. Private Living Quarters Kelantan gganu Malacca Selangor Malaysia

House/Bungalow

Detached 1.76 1.53 2.34 2.64 2.13

Semi-Detached 1.92 2.19 2.98 2.56 2.66

Terrace, Row 2.22 2.34 3.17 .2.98 2.98

Total 1.78 1.56 2.h8 2.70 2.27

Flat or Room

In/Attached to house 2.22 1.99 2.92 2.39 2.33

In Shophouse 2.22 2.12 2.95 3.24 2.98

In Housing Block 2.24 1.92 2.54 2.57 2.h7

Other 2.21 2.26 3.4o 2.82 2.97

Total 2.22 2.09 2.89 2.86 2.81

Labor Lines 1.68 1.73 2.02 1.88 1.86

Makeshift, Improvised 1.224 1.29 1.58 2.26 1.86

Total Private Living Quarters 1.79 1.59 2.48 2.64 2.28 - 128 -

Table II.24: W. MALAYSIA (SELECTED STATES) AVERAGE NO. PERSONS PER ROOM BY TYPE OF OCCUPIED PRIVATE LIVING QUARTERS

Total Av. No. Persons per Room of Tren- W. pied Living-Quarters IKelantan gganu Malacor Malasia HoseBaglow

Detached. -: ; v 2'. 81 3 .29 2.78 2.57 2.78

Semi-Detached 2.46 2.30 2.10 2.42 2.28

Terrace/Row 2.31 2.07 2.09 2.10 2.18

Total 2.78 3.21 2.60 2.44 2.65

Flat or Room

In/Attached to House 2.50 3.07 2.81 2.48 2.66

In Shophouse 2.42 2.57 2.73 2.50 2.55

In Housing Block 2.64 2.75 2.19 2.37 2.h2

Other 2.33 2.31 2.31 2.33 2.29

Total 2.44 2.62 2.64 2.44 2.52

Labor Lines 2.54 2.63 2.63 3.11 2.97

Makeshift, TInprovised 2.73 3.14 2.98 2.78 2.89

Total Private Living Quarters 2.76 3.16 2.63 2.49 2.65 - 129 - Table II. 25: W. MALAYSIA (SELECTED STATES) %IDISTRIBUTION OF OCCUPIED PRIVATE LIVING QUARTERS BY NO. OF MOTOR VEHICLES AND CYCLES

Total No. Motor Vehicles Per Occupied Tren- W. Private Living Q rs Kelantan gganu Malacca Selangor Malaysia LiLarters with M4otor Vehicle s Numbering .

* 96.5 96.4 90.1 82.5 90.7 1 3.1 3.2 8.8 14.3 8.0 2 .3 .3 .8 2.5 1.0 3 .1 .1 .2 .5 .2 4+ - - .1 .2 .1 Total 100.0 100.0 100.0 100.0 100.0

No. Living Quarters/No. Vehicles 25.6 24.7 9.0 4.6 9.0

No. Motorcycles/Scooters per Occupied Private Living Quarters

Living Quarters with Motorcycles/. Scooters tNmbering ()

0 96.5 93.1 87.3 81) 86.3 1 3.1 6.5 11.8 15.9 12.2 2 .3 .3 .8 1.8 1.2 3 .1 .1 .1 .4 .2 4+ - - - .1 .1

Total 100.0 100.0 100.0 100.0 100.0

No Living Quarters/No. Motor- cycles/Scooters 25.6 13.4 7.2 4.7 6.5 - 130 -

Table II.27: W. MIAYSIA. DISTRIBUTION OF HOSPITAL BEDS BY STATE AND SUPPORT OF HOSPITAL 1971

Government Estate Private Number Hospital Hospital Hospital State Total per Beds Beds Beds 100,000 Johore- 2,602 251 85 2,938 224 Kedah 1,247 868 20 2,135 218 Kelantan 863 48 - 911 131 Malacca 1,005 83 17 1,105 267 Negri Sembilan 2,117 376 30 2,525 518 Pahang 1,185 88 8 1,281 246 Penang 1,543 30 194 1,767 222 Perak 3,276 788 361 -4,25 278 Perlis 299 - - 299 243 Selangor 2, 774 1, 027 1,231 5,032 299 Trengganu 589 10 - 599 144 Special Institutions 10,161 - - 10,161 113 Total 27,661 3,571 1,9946 33,178 368 -131

Table I1.28: WEST MALAYSIA. DISTRIBUTION OF GOVERNMET HOSPITAL BEDS Br STATE AND TYPE, 1971

Diseases Gynecology Special General and Surgery and and un- State Conditions Obstetrics classified

Johore 731 668 589 520 94

Kedah 350 340 313 197 47

Kelantan 235 212 152 94 170

J%lacca 200 319 288 182 16 Negri Sembilan 660 712 342 .237 166

Pahang 404 361 227 169 2 Penang 447 380 406 235 75

Perak 1,138 787 726 500 125

Perlis 151 106 - 36. 6

Selangor 661 461 814 45h 326 Trengganu 255 204 48 72 10

Special Institutions - 293 - - 9,868

Total 5,232 4,843 3,905 2,696 10,927 - 133 -

Table II.30: W. M1IAYSIA. DISTRIBUTION OF HE4LTH CENTERS BY STATE AND TYPE. 1971

Sin Health Sub- Midwife Dispensaries State Centers Centers Clinics Fixed Mobile

Johore 5 30 167 8 38

Kedah 3 22 121 7 20

Kelantan 5 18 69 1 24 %lacca 2 11 56 3 14J

Negri Sembilan 2 15 68 2 18

Pahang 6 23 132 6 25

Penang 3 9 55 10 11 Perak 9 28 -128 7 8

Perlis 1 6 28 2 2

Selangor 7 24 101 13 7

Trengganu 4 12 63 - 16

Total 47 198 988 59 223 - 134 -

Table II.31: W. &IAYSIA. DISTRIBUTION OF HEALTH CENTERS PER 100,000 POPUIATION BY STATE AND TYPE. 1971

Skin Health Sub- Midwife Dispensaries State Centers Centers Clinics Fixed I.bbile

Johore 0.38. 2.29 12.74 o.61 2.90

Kedah 0.31 2.25 12.37 0.7.2 2.04 Kelantan 0.72 2.59 9.93 0.14 3.45 1al1acca 0.48 2.66 13.53 0.72 3.38

Negri Sembilan 0.41 3.08 13.96 0.41 3.70

Pahang 1.15 4.42 25.38 1.15 4.81

Penang 0.38 1.13 6.90 1.26 1.38

Perak 0.57 1.76 8.05 0.44 3.02

Perlis 0.81 4.88 22.76 1.63 1.63

Selangor 0.42 1.43 6.00 0.77 0.42

Trengganu 0.96 2.88 15.10 - 3.84

Total 0.52 2.20 10.96 0.65 2.47 135 -

Table II.32: W. M1IAYSLA (SZIECTED POINTS) WEIITED "'COSTOF SERVDIG THE NATIONAL MARET ", UNDER DIFFERRING ASSUMPTI'ONS

Estimate Estimate Estimate Estimate Estimate "A " 11 lc? 1 IT"

Kangar 354 725 328 699 721 320 669 295 6h3 664 S. Petani 286 704t 261 579 598 Butterworth 265 573 242 551 568 Georgetown 271 58h 249 555 573 Taiping 230 508 211 488 503 Ipoh 192 435 175 418 431 Tapah 176 391 165 .381 392 Telok Anson 194 421 184 411 421 Tanjong hllim 164 349 159 344 352 K. Kubu. Bahru 160 3h2 156 338 346 Kuala Lunpur 154 312 153 310 316 Klang 177 350 176 349 356 Kajang 161 309 159 306 312 Seremban 1'71 302 171 301 306 Po rt Dickson 186 327 186 327 332 Tamping 185 298 185 298 302 Melaka 199 297 199 207 302 aar 220 301 220 301 306 Batu Pahat 255 314 255 31h 319 Kluang 271 327 271 327 333 Johor Baharu 311 339 311 339 347 Segamat 220 304 220 304 307 Mersing 324 388 324 388 392 Kuala Pilah 183 310 183 310 314 Temerloh 19[ 340 194 340 344 Bentong 170 329 170 329 334 Kuala Lipis 214 417 214 417 424 Kuantan 262 420 262 420 423 338 551 316 529 535 Kuala Trengganu 383 625 317 559 568 Jerteh 447 728 333 614 626 Kota Baharu 489 796 342 649 662 Tanah Merah 468 762 320 620 634 Jeli 500 814 300 620 634 262 564 231 533 550 Baling 291 616 259 585 604 Bukit Ridan 219 333 214 327 329 - 136 -

Table II.33: W. MAIAYSIA (SELECTED POINTS). INDEX OF COST OF SERVING NAT IONAL MARKET UNDER DIFFERRING ASSUMPTIONS

Estimate Estimate Estimate Estimate "A Estimate !1I'DfII IfI fit Kangar 229.87 244.11 214.38 235.35 238.74 Alor Setar 207.79 225.25 192.81 S. Petami 216.50 219.87 185.71 207.04 170.59 194.95 Butterworth 172.08 198.01 192.93 158.17 185.52 188.08 Georgetown 175.97 196.63 162.75 186.87 189.74 Taiping 149.35 171.04 137.91 Ipohi 164.31 166.56 124.68 146.46 11.438 14o.74 142.72 Tapah 114.29 131.65 107.84 Telok Anson 128.28 129.80 125.97 141.75 120.26 138.38 Tanjong ialim 139.40 106.49 117.51 103.92 115.82 116.56 K. Kuba Bahru 103.90 115.15 101.96 Kuala LLumpur 113.80 114.57 100.00 105.05 100.00 104.38 Klang 114.94 104.64 117.85 115.03 117.51 117.88 Kajang 104.55 104.04 103.92 Seremban 103.03 103.31 111.04 101.68 1-11.76 101.35 101.32 Port Dickson 120.78 110.10 121.57 110.10 109.93. Tampin 120.13 100.34 120.92 :100.34 100.0 Melaka 129.22 100.00 130.07 100.00 100.0 Maar 142.86 101.35 143.79 Batu Pahat 101.35 101.32 165.58 105.72 166.67 105Q%.72 105.63 Kluang 175.97 105.99 177.12 110.10 110.26 Johur Baharu 201.95 114.14 203.27 114.14 114.90 Segamat 142.86 102.36 143.79 Nersing 102.36 101.66 210.39 130.64 211.76 130.64 129.80 Kuala Pilah 118.83 104.38 119.61 Temerloh 104.38 103.97 125.97 114.48 126.80 114.46 113.91 Bentong 110.39 110.77 111.11 Kuala Lipis 110.77 110.60 138.96 140.410 139.87 14o.40 140.40 Kuantan 170.13 141.41 171.24 Kuala Dungun 141.41 140.07 219.48 185.52 206.54 178.11 Kuala Trengganu 248.70 177.15 210.44 207.19 188.22 188.08 Jerteh 290.26 245.12 217.65 206.73 207.28 Kuta Baharu 317.53 268.01 223.53 218.52 219.20 Tanah Merah 303.90 256.57 209.15 208.75 209-93 Jeli 324.68 274i.07 196.08 Gerik 208.75 209.93 170.13 189.90 150.98 179.46 182.12 Daling 188.96 207.1l 169.28 Bukit Ridan 196.97 200.00 142.21 112.12 139.87 110.10 108.94 -137-

Table II.34: W. MXIAYSIA (SELECTED POINTS) RATIO OF ESTIMATE t'IC" AND ESThI'ATE "Al"

Kangar .927 Alor Setar .921 S. Petami .912 Butterworth .913 Georgetown .919 Taiping .917 Ipoh .912 Tapah .938 Telok knson .949 Tanjong I'alim .970 K .975 Kuala Lumpur .994 Klang .994 Kajang .988 Seremban 1.000 Port Dickson 1.000 Tampin 1.000 Melaka 1.000 I,tar 1.000 Batu Pahat 1.000 Kluang 1.000 Johur Baharu 1.000 Segamat 1t000 Mersing 1.000 Kuala Pilah 1.000 Temerloh 1.000 Bentong 1.000 Kuala Lipis 1.000 Kuantan 1.000 Kuala Dungun .935 Kuala Trengganu .828 Jerteh .745 Kuta Baharu .699 Tanah Merah .684 Jeli .600 Gerik .882 Baling .89C Bukit Ridan .977 - 138 -

Table II.35: W. M?IAYSIA. DISTRIBUTION OF MOTOR VEHICLES BY TYPE AND STATE. 1971

Lorries Private Motor State Buses Taxis and Vans Cars C(ycles Johore 1,0142 1,590 9,244 28,951 48,172 Kedh/Perlis 829 490 3,262 13,359 29,858 Kelantan 202 314 1,541 6,086 12,925

Malacca 418 442 2,084 <2,144 15,375 Negri Sembilan 417 434 3,304 15,Q22 22,230 Pahang 342 179 2,631 8,575 17,180 Penang 509 290 5,639 29,334 49,753 Perak .798 1,149 7,670 37,671 73,709 Selangor 1,596 1,861 21,443 86,315 91,137 Trengganu 147 183 1,192 3,915 8,266

Total 6,200 6,930 58,110 241,272 368,605 -139-

Table II.36: W. MLAYSIA. DISTRIBTUTION OF MOTOR VEHICLES BY TYPE AND STATE. 1971 (Number per 1,000 persons)

Lorries Private Motor State Buses Taxis and Vans Cars Cycles

Johore. 0.79 1.21 7.05 22.1 36.7

Kedah/Perlis 0.75 o.45 2.96 12.. 27.1

Kelantan 0.29 0.45 2.22 8.8 18.6

IMhlacca 1.01 1.07 5.03 29.3 37.1 Negri Sembilan o.86 0,89 6.78 30.8 45.6 Pahang 0.66 0.3h 5.o6 16.5 33.0

Penang oe64 0.36 7.08 36.8 62.L

Perak 0.50 0.72 4.82 23.7 4i6.4

Selangor 0,95 1.11 12.73 51.3 5h.1

Trengganu 0.35 0.44 2.86 9.4 19.8

Total 0.69 0.77 6.45 26.8 40.9

N . .. . 140. Table II.37: COMMERCIAL BANKThG OFFICES

Number of banking offices as at end of year ForeignLanks Domestic Other Nunber of persons Banks Singapore Countries Total per banking office State 1970 1971 1970 1971 1970 1971 1970 1971 1970 1971 Johore 21 21 9 9 2 2 32 32 L3,300 45,2O0 Kedah 10 10 2 2 2 2 14 it, 71,500 73,500 Kelantan 5 5 2 2 2 2 9 9 81,500 83,800 Malacca 8 8 3 3 4 4 15 15 29,600 30,600 Negri Sembilan 12 12 2 2 3 3 17 17 32,300 33,4oo Pahang 7 7 4 4 8 8 19 19 24,500 25,300 Penang 20 20 8 8 10 10 38 38 21,100 21,700 Perak 29 20 7 7 9 9 5 45 39,200 40,4o0 Perlis 2 2 - - 1 1 3 3 41,900 43,000 Sabah 7 8 6 6 13 13 26 27 25,500 25,200 Sarawak 14 15 2 2 9 9 25 26 38,800 38,300 Selangor 38 42 17 17 31 31 86 90 17,900 17,700 Trengganu 4 5 1 1 2 2 7 8 59,000 53,200 MALAYSIA 177 184 63 63 96 96 336 343 32,4oo 32,700 - 141 -

Table II.38: BANK DEPOSITS BY STATE -- AS AT DECEMBER 31st Million $M

State 1971 1970 1969 1968

Johore 234.0 212.6 191.1 157.h Kedah 87.2 79.9 75.5 65.7 Kelantan 54.0 47.0 45.9 36.4 Malacca 101.8 93.7 92.3 84.0 Negri Sembilan 125.0 121.9 115.4 99.3 Pahang 139.6 145.4 123.3 96.2 Penang & P. Wellesley 359.0 318.2 294.7 270.9

Perak 413.8 372.0 361.1 319.0 Perlis 11.0 9.5 7.9 7.5

Selangor 1,707.5 1,)406.8 1,228.7 1,095.3 Trengganu 35.0 30.1 26.8 21.2

Total 3,267.9 2,836.9 2,562.7 2,252.9 - 1Lh2 -

Table II.39: BANK DEPOSITS BY STATE -- AS AT DECEMBER 31st -- PER CAPITA

State 1971 % of Growth 1970 1969 1968 1968-1971 Johore 178.49 166.88 153.25 129.33 38.01 Kedah 89.16 83.66 80.92 72.12 23.63 Kelantan 77.70 69.02 69.13 56.09 38.53 lhlacca 245.89 231.93 234.36 218. 75 12.141 Negri Sembilan 256.67 254.i49 246.58 216.81 18.39 Pahang 268.46 289.07 254.75 206.00 3Q.32 Penang & P. Wellesley 4.50.h4 409.52 387.76 364.60 23.54 Perak 260.25 238.0o 235.86 212.38 22.54 Perlis 89.43 78.51 66.95 65.22 377.12 Selangor 1, 013.95 863.60 78h.61 724.88 39.88 Trengganu 83.93 74.114 68.37 55.64 50.85 Total 362.46 322.67 299.49 270.20 34.15 - 143 -

Table IILO: BORROWING COMPANY OFFICES

Number of offices as at end of 1 10 Number of persons per _ borrowing company office Head Total Head Total Head Total State Offices Offices Offices Offices Offices Offices 1969 1970 1971

Johore - 18 - - 18 75,400 77,800 80,300

Kedah 1 6 1 6 1 6 1062,200 166,900 171,600 Kelantan

Malacca 1 9 1 9 1 9 47,700 49,4oo 51,000

Negri Sembilan - 8 - 8 - 8 66,500 68,700 70,900

Pahang - 6 - 6 - 6 75,200 77,600 80,000

Penang 3 22 4 23 4 23 35,600 34, 900 35,800

Perak - 30 - 32 - 32 57,100 55,200 56,800

Perlis - - - - -

Sabah - 12 - 12 1 13 53,700 55,300 52,400

Sarawak 4 17 14 17 4 17 55,1400 57,000 58,60o

Selangor 19 141 19 ~ 36 19 36 36,400 42,800 1414,200

Trengganu ------

MALAYSIA 28 169 29 .167 30 i68 62,400 65,100 66,700 -144-

Table II.41: W. ?AIAYSIA. DEPOSITS AND WITHDRAWALS FROM POST OFFICE SAVINGS BANK BY STATE 1971

Net Deposits per Capita Deposits Withdrawals Deposits. Gross State Net ($loco) ($'ooo) ($'ooo) $ $ Johore 21,846 19,769 2,077 16.7 1.58 Kedah and Perlis 11,714 11,498 216 10.6 0.20 Kelantan 5,845 5,745 100 8.h 0.14 Milacca 8,047 8,328 -281 19.4 -0.68 Negri Sembilan 15,640 1)4,999 641 32.1 1.32 Pahang 13,036 11,373 1,663 25.1 3.20 Penang 15,319 15,L05 -86 19.2 -0.11 Perak 37,358 35,963 1,395 23.5 0.88 Selangor 52,170 43,290 8,880 31.0 5.27 Trengganu 6,728 5,999 729 16.1 1.75 Total 187,703 172,369 15,334 20.8 1.70

Ia. Table III.1: KEIANTAN RUJBBER STATISTICS

Estates .iallholdings

?Mture Acreage 33,525 n.a.

Immature Acreage 7,081 n.a. Total 1970 40,606 199,500

Replanted during 1970 656 n.a.

New planted " 1Q70 508 n.a.

Acres-mature 6-10 years 10,006 n.a. by age 11-15 8,504 n.a. 16-'20 5,140 n.a.. 21-25 1,335 n.a. over 25 8,540 n.a.

Immature planted to 1964 670

in 1964 505 2/ 15,h86

1965 1,327 3/ 23,121 1966 1,009 4,694 1967 943 1,395 1968 290 4,008

1969 1,173 3,942

1970 1,164 3,977

Production 1966 11,880 23,h69 Tons. 1967 12,682 24,384

1968 12,712 27,986

1969 13,905 35,838

1970 16,696 32,787

1/ Replanting under Fund 'B' schemes 2/ 1953-60 7/ 1961-65 - 1ih6 -

Table ITI. 2: TRENGGANU RUBBER STATISTICS

EStates Smallholdings Mature Acreage 13,738

Immature Acreage 1,683 Total 1970 15,h21 133,030 Replarnted in 1970 74s New planted

Mture Acres 6-10 years 2,093 by age 11-15 2. 257 16-20 857 21-25 233 over 25 8,298 Fund 'B' FIDA Immature planted to 1964 655 inl 1964 1.53 1/ 13,815 3/ 1,076 1965 465 2/ 11,545 4/ 5,530 1966 285 1,563 - 1967 4h 2,069 - 1968 7 1,341 - 1969 - 1,374 - 1970 74 1,705 3,127 33,416 9,733 Total

Production 1966 2,790 Tons. 12,953 1967 2,940 11,330

1968 3,064 13,718

1969 3,220 20,161

1970 3,39h 15,061

11 1953-60 2/ 1961-65 3/ up to 1959 Ti/ 1960-65 Table III. 3: PAHANG RUBBER STATISTICS

Estates Smallholdings Mature Acreage 93,639

Immature " 23,492

Total in 1970 117,131 385,21t0

Replanted in 1970 3,893

New planted " 1',329

?hture Acres 6-10 years 26,129 by age 11-15 18,236 16-20 4,059 21-25 2,558 over 25 42,657 Fund 'B' FLDA Immature planted to 1964 1,946 in 1964 1,447 1/ 16,240 -

1965 3,487 2/ 22,872 3/ 16,215 1966 4,597 h,144 3,222

1967 2,723 5,656 2,268 1968 621 3,226 2,34h

1969 3,449 3,423 1,780

1970 5,222 5,630 8 657 34,486 Production 1966 26,443 29,547

1967 26,h53 29,688

1968 28,237 36,964

1969 31,458 48,082 1970 32,305 50,683

1/ 1953-60 2/ 1061-65 -/ 1960-65 Table III.h: KEIANTAN OIL PALM STATISTICS. 1970

Oil Palm Estates FLDA Others Total Acreage -Mature 5,483 - 902 6,385 Immature 3,885 - 4oo 4,285 Immature planted prior to 1969 2,038 153 2,19 1 in 1969 1,1h3 99 1,242 ir± 1970 704 148 852 Intended 1971 1,250 1,250 Nature Acres 3-5 5,001 by Age 6-10 - Estates only 11-15 350 16-2C0 - 21-25 over 25 132 Table III.5: TRENGGANU OIL PALM STATISTICS. 1970

Oil Palm Estates FLIDA Others Total

Acreage -hture 6,700 7,654 3,375 17,729

Immature 18,547 4,932 6,302 29,781 Immature Planted prior to 1969 7,142 3,012 2,015 12,199

in 1969 5,451 - 2,710 8,161

in 1970 5,95h 1,920 1,547 9,421

Intended 1971 662 - - 662

Mature Acres 3-5 6,700 n.a. n.a. by Age 6-10 Estates only 11-15 16-20 21-25 over 25. Table III.6: PAHANG OIL PALM STATISTICS. 1970

Oil Pa m Estates FLDA Others Total Acreage -ilture 9,198 4,350 4,9.411 18,1X89 Immature 20,555 82,290 14,857 117,702 Immature Planted prior to 1969 1h,1h27 4.3,713 722 58,862 in 1969 4,635 23,976 1,060 29,671 in 1970 1,493 14,601 13,075 29,169 Intended 1971 1,347 19,423 20,770 aMature Acres 3-5 3,938 by Age 6-10 381 Estates only 11-15 1,553 16-20 - 21-25 75 over 25 3,251 Table 111.8: COPRA FIEIDS PER ACRE AND CONTRIBUTILSG FACTORS

I P-i I.. - Cap-: p- AeI,,

6it 55 86 5 184F aSOul 1 6910 1.0 55

JC 66 SU 1.6 ______

1atw 4U 17 885 2415. MS 5 5 50 1,(Z 24C 4.8 h|"ok r9 15 15 190 - 2.17 EtP ?asrPa 463 -758 1,2 . t.

It1 JJ*S~ 63. Si 1,,57 1.85 5.70 3sk 5nD 76 6 45 2,709 1.80 9.05 l 75 45 . . 19W 1.76 7.8

MLA I/M SO 47 42 - 1~994 LOJ 7.50

Source:

F.A, O. ' Economic Survey of' the Coconut Groving Industry". 19.68. Pable III.9: RICE, ACREAGE AND PRODUCTION BY STATE AND TYPE OF CROP. 1966-1970

Total Kelantan Trengganu Pahang Total W. hla ysia Main Crop Acres

1966-67 166,000 55,520 42,250 263,770 878,910 1967-68 170,520 56,980 48,120 275,620 906,590 1968-69 172,170 69,780 50,070 292,020 945,970 1969-70 171,'300 72,980 53,600 297,880 938,010 Production ('000 gantangs)

1966-67 19,256 8,328 1967-68 16,013 43,867 341,896 27,795 13,561 14,1436 1968-69 52,512 55,792 376,235 18,561 8,762 79,835 1969-70 58,1413 407,713 21,310 12,221 91,944 L.400,530 Off. Season Acres

1966-67 9,790 3,1420 3,100 16,310 156,9140 1967-68 14,160 5,240 4,870 *24,270 2214,660 1968-69 19,380 7,4100 3,7140 30,520 238,130 1969-70 26,320 9,1430 5,050 40,8Qo 325,930 Production-( 000 gantangs)

1966-67 3,730 1,197 1,234 6,161 68,740 1967-68 6,174 2,3148 1,656 10,178 . 102,220 1968-69 8,740 3,041 1,201 12,982 114,541 1969-70 10,9149 3,253 1,601 15,803 151,232 Dry Padi. Acres

1966-67 17,110 13,800 4,120 35,030 51,500 1967-68 17,290 1L; 570 5,500 37,360 51,250 1968-69 16,8140 18, 270 6,370 41,1480 57,180 1969-70 17,570 19,450 6,340 43,360 53,580 Production (I0oo gantangs)

1966-67 2,464 2,705 713 5,882 8,806 1967-68 3,596 2,695 1968-69 808 7,099 9,686 3,705 3,051 1969-70 1,013 7,769 10,635 14,076 3,3814 1,350 8,810 10,9814 Total Production ('000 gantangs)

1966-67 25,1450 12,230 17,960 1967-68 37,565 55,640 419,442 18,604 16,900 73,069 488,141 1968-69 64,957 24,653 11,713 101,323 532,889 1969-70 73,1438 27,9417 15,172 116,557 562,7146 rable 1l.l10: FRUITS, SPICES, FOOD AND OTHER CROPS, ACREAGE BY STATE 1970

Crop Total Kelantan Trenggarnu Pahang Total W. Malaysia Food Crops

Tapioca 1,304 1,173 6,037 8,514 43,621 Sugar Cane 452 354 212 1,018 17,650 Sweet Potato 675 803 856 2,334 10,790 Groundntrt 1,072 110 408 1,590 Maize 6,200 701 2,205 ,207 4,113 Vegetables 7,605 2,819 758 3,680 7,257 19,072 Water Melon 1,098 1,155 487 2,740 Other 3,646 909 248 285 1,442 8,674 Total 9,030 6,806 13,172 29,008 117,258 Fruits

Pineapple 1,291 1,475 396 3,162 Bananz 50,714 3,055 2,736 10,721 16,512 42,296 Durian 1,361 1,788 1,649 4,798 Rambutan 20,862 2,403 1,283 2,238 5,924 23,722 Mandarin Orange 712 1,388 1,212 3,312 Cashews 4,610 905 1,810 950 3,665 Others 4,240 2,405 1,458 2,313 6,176 22,659 Total 12,132 11,938 19,479, 43,549 169,103 Spices and others

Arecanut 810 155 201 1,166 Chillies 7,806 227 246 240 713 Tobacco 2,367 5,575 241 561 6,377 7,894 Nepal 969 3,984 4,335 9,288 Others 22,726 568 360 2,077 3,005 7,849 Total 8,149 4,986 7,414 20,549 48,642

Grand Total 29,311 23,730 4o,o65 93,106 335,003 Table III.ll: LIVESTOCK, lIUMBERS BY "TATE 1966 AND 1970

Kelantan Trengganu Pahang Total W. Malaysia

Nos. Buffaloes 66 51,212 24,028 23,599 98,839 259,433

70 50,561 29,939 21, 248 101,748 233, 032 Cattle 66 93,867 33,984 9,554 137,405 310,476

70 83,377 46,391 14,766 1W.4,534 304,792 Goats 66 23,8h0 9,871 18,378 52,089 330,475

70 21,657 10,872 25,875 58,04 332,523

Sheep 66 12,487 4,462 7,167 24,116 37,967 70 13,092 4,491 6,886 24,469 38,183 Pigs 66 13,513 2,582 13,947 30,042 599,393 70 7,567 3,095 20,132 30,794 724,446

East. % 1970 Buff. c 42 ox c 47. Table III.11a: ESTIMATED EXPORT AVAIIABILITY OF BUFFALOES AND CATTLE, EAST COAST STATES. 1970

Kelantan Trengganu Pahang Total Buffaloes

Recorded slaughter 3,297 1,865 2,391 7,553

Share of national total 7,924 4,682 3,241 15,847

Difference 4,627 2,817 850 8,294

Cattle

Recorded slaughter 3,875 2,847 743 7,465

Share of national total 11,861 6,590 2,196 20,647

Difference 7,986 3,743 1,453 13,182 Table I, 1-: STATISTICS

Total Total West Kelantan Trengganu Pahang E. Ccast 121aysia Iandings of >l.nne Fish (tons)

1960 . 14,075 hi, 450. 8, &63 62 ?7,388 139, L69 5,965 26, 715 5, 192 37,872 170,207 64 5, 616 6, 978 5, 6)5 38,239 66 192, 158 6, 078 23,362 5,327 314,737 236,607 68 7,41147 25,110 8,151 1970 140,708 339,4182 6,629 21,143 8,257 36,029 294,296 Number of Fishernen

1960 6,486 12,809 2,791 22,086 62 53,7814 7,030 11,746 2, 7.70 21, 096 64 55,510 6,382 11,103 1,852 19,337 66 61,1465 . 4,331 11,352 2,570 18,253 68 62,1457 4,567 10,342 2,444 17,353 1970 61,501 5,316 10,778 2,380 18,1414 68,154 Landings/Fisherman (tons)

1960 0.628 1.128 3.176 1.2140 62 2.593 0.8149 2.2714 2.238 1.795 64 3.066 0.880 2.1430 3.048 1.978 66 3.126 1.L03 2.058 2.073 1.903 68 3.788 1.631 2.428 3.335 2.346 1970 5.520 1.2147 1.962 3.1469 1.950 14.318 Types of Fishing gear (1970) Bag Nets - - Gill/Drift 3 3 1,035 Nets 254 321 lUnes 322 897 5,026 185 750 259 Seine Nets 1,1914 2,761 414 110 40 194 1,869 Trawls 193 273 Traps 232 698 3,548 and Pots. 51 133 Misce llaneous 314 218 468 151 559 56 766 2,991 Total 878 2,146 9146 3,970 17,698 Table III.13: MONTHLY LANDINGS OF MARINE FISH BY STATE, 1970 (in Piculs)

State Jan. Feb. Mar. April May June July August Sept. Oct. Nov. Dec. Total (piculs) (tont Johore 38,591 49,505 49,424 49,236 48,031 49,912 53,092 60,913 64,964 68,817 62,134 58,851 653,470 38,8' Kedah 48,411 55,390 49,914 39,403 32,822 33,265 31,340 31,919 26,691 36,733 44,318 47,163 477,369 28,44 Kelantan 3,729 4,526 8,266 13,649 11,812 12,115 12,269 12,661 11,432 10,879 7,553 2,476 111,367 6,6, Malacca 2,226 2,186 2,703 2,323 2,540 2,573 2,992 2,566 2,433 2;437 2,566 2,454 29,999 1,7E Negri 641 584 590 510 519 555 500 483 477 501 633 512 6,505 3f Pahang 7,326 8,460 8,652 7,570 9,181 10,478 11,266 9,143 12,323 '26,257 19,954 8,098 138,708 8,25 Penang 62,936 52,200 58,140 56,057 58,563 52,873 48,o96 51,530 52,351 51,188 52,062 42,784 638,780 38,02 Perak 160,963 139,711 160,699 145,688 155,38k 136,268 147,791 135,514 126,918 128,071 126,988 118,525 1,682,520 100,15 Perlis 7,192 6,714 6,329 9,649 8,294 9,667 6,209 5,837 7,200; 6,853 7,068 6,045 87,057 5,18 Selangor 69,901 70,448 75,563 52,234 .51,417 58,088 68,14io 82,124 65,125 62,087 48,549 59,245 763,191 45,42 Trengganu 15,887 22,367 30,604 32,836 33,097 33,898 39,076 33,078 146,0141 42,o63 14,978 11,280 355,205 21,14 Total Piculs 417,803 412,091 450,884 409,155 411,660 399,692 421,041 425,768 415,955 435,886 386,803 357,433 4,9144,171 - Tons 24,869 24,529 26,838 24,355 24,504 23,791 25,062 25,343 24,759 25,946 23,024 21,276 - 294,29 Table IIIl4:.- Fe 3 C,Z,.TH 3-f t OF DAR. .197C

uCa-'., per Percent-age oa limers Cat-ch Uhnit unlits r,De.-tea .te of Gear of nit s (Tzrs j (Tons) on East Coast

Bag Nets 1,035 . 23,.313 2'22.5 0.3

GUI ,I/rift Wets 5. G0 2,75 hL.3 17.8

Lines 2,76i 1lh,L97 5.2 L3.2

Seine Nets 1,869 90,883 l8.6 10.4

ras3 3,58 84,732 23.9 19.7

Traps arn Pots 468 7,069 15.1 46.6

c1ce'lar ec us , 991 04,5Gh 17.L4 25.6 Table III.15: DISTRIBUTION OF LAND AREAS BY USE CATEGORIES AND BY STATES, W. MALAYSIA, 1969

F o r e a t A.r e a Forealt 1/ State Land Forest Land Potential St-tt Total Areal, Total Reserve Future Forest Suited for Agriculture Forest Area ..-.- Acres L Johorc 4,691,200| 2,1471,168 1, 373,440 1,097,728 1,329,792 1,141,376 Keda.11 2,342,koo 986,24o 793,152 193,088 1i84,224 838,016 Kela r.c,n 3,680,000 2,751,424 905,600 19845 ,824. 5449704 2,206,720 Malacca 409o,600 791,104 33,600 45,504 33,216 45,,888 N . So:ibilan 1,61h Tci)0 859,584 636,736 222,848 3159072 544,512 Pahn.r. 8,r8;?, - 7,481,152 2,950,208 4r530, 944 3,219,968 4,261,184 Porak 5,107, 20 3,136,640 2,068,928 l,067,712 396,672 2,739,968 Penan, 254,720 37,952 12,8oo 25,152 1,920 369032 Perli.s 198,400 69,120 63,552 5,568 45,568 23,552 Selanrior 2,026,880 886,528 527,168 359,360 118,848 767,680 Tren.t:liu 3,217,280 2,149,568 880,128 1,269,440 413,76 1,736,192 Total 32,448,000 J2ot908,480 10,245,312 10,663,168 6,567,360 14t341,120

1/ Includes 163,328 acres of non-forested area within existing and proposed Forest Reserve boundaries.

Source: FAO Forest Industries Development of Malaysia, 1970. Table Ill.16: FC.:STFY STATISTIGS

Tren- Total To ta Ke'lantan gganu Pahang Es. Coast LOG PRODUCTION W. Malay ia Cu. tons 1960 61,02 7h,1h8 362,6Th h97,88h 1962 t,589,O3l, 42,406 73,272 h63,11h 578,792 1, 632,h!92 1964 69,136 131,620 648,532 84S,288 2,105,168 1966 136,35 114,90h 1,16h,349 1,h5,607 1968 2"691 h2. 186,716 235,380 1,900,437 2,322,533 3,586,828 *1970 199,520 .397,640 2,6h9,300 3,246,L60 4,619,42o SA1N TI PROD. 1966 45, C0J 35, C00 175, 000 255,000 i, GCL. 1968 o, 71,000 61,000 272,000 4C0,4000 1,h18,000 1970 69,000 71,0D0 322,000 462,000 1,609o,c0 PLYWDOD FR' 000 8q. ft.- - - - 116,662 1968 - - - - 224,767 1970 - 78,715 68,868 147,583 LOG CONSUMPTION 703,374 by SawLills 1966 76,000 6o,0o0 298,000 L434,000 1,630,0W 1968 109,000 107,000 4h8,ooo 664,000 2,271,000- 1970 69,000 119,000 548,ooo FOR PLYWOOD 736,000 2,596,000 1966 - - - - 79,692 1968 - - -190, 1970 - 1l,375 15 ,842 29,857 341,024 CONSUMPrITOT AS % OF PPDDUCTION Sawmills 1966 55.7 52.2 25.6 30.6 1968 60.6 58.12 45.5 23.6 28.9 63.3 1970 34.6 29.9 20.7 PLOXD 22.7 56.2 1966 - - - 1968 2.9 - - - - 5.3 1970 - 3.6 0.6 0.9 7.h SA =LS 1966 29 18 72 1968 119 432 31 18 76 125 1970 443 31 19 83 133 451 PLYWOD & VEER FACrORIES

1966 - - - 12 1968 - - 1970 - 15 1 3 4 22 Table III.17: W. MAIAYSIA - LOG PRODUCTION AND UTILIZATION 1960-1970 (THOUSAND CUBIC TONS)

Used in West Mlaysia Total Percent Plywood and Total including Output used in Year Sawmills Vencer. other TV.Malaysia

1960 1,220 2.6 1,225 1,589 77.1

1962 1,236 7.9 1,250 1,632 76.6

1964 1,506 22 .9 1,536 2,105 73.0

1966 1,631 79.7 1,718 2,691 63.8

1968 2,272 190.5 2,519 3,586 20.2

1970 2,596 341.0 2,987 %, 619 64.7

Source:

Forest Industries Development Project Table 1II.18: PROPORTICN OF ILG CUTPUT' BY STATE. 1960-1970

State 1960 1962 1964 1966 1968 1970

Johore 23.9 26.7 26.1 21.3 11.5 10.0 Kedah 6.4 6.1 5.7 5.6 5.h 4.9 Kelantan 3.8 2.6 3.3 5. 1 5.2 4.3

Malacca 0.5 O.1 0.3 0.2 0.1 O.6 Negri Sembilan 16.0 12.2 10.0 7.6 6.1 4.3 Pahang 22.8 28.4 30.8 13.3 53.0 57.4

Pernang ------Perak lh.1 14.1 12.2 9.4 9.1 8.1 Perlis 0.2 0.1 0.1 - 0.1 Selangor 7.2 4.9 5.3 3.2 2.9 1.8 Trengganu 4.7 4.5 6.3 4.3 6.6 8.6 .I Table III.19: ESTIMATED CAPACITY OF SAWMILLS, W. MALAYSIA

ESTIHATED INTAKE CAPACITY Ac tual--- IN TONS OF 50 CUBIC MT log -- Of mills States intake . Aacuming Of mills X established % construction 1968 In Ratio e'1 9 Increase or Increase of all milla Incrtias- 1968 (1).to( established sinco under since currently since by ay 17 1968 conatruction 1968 approved 1968 by May '70 1 2 5 4 5 6 7 8 9 10 Johore 339,932 457,000 74 486,030 6 527,500 15. 561,200 23 Kedah 172,930 166,700 104 175,700 5 175,700 5 175,700 5 Kelantan 1o3,814 151,100 72 151,100 0 158,600 5 158,600 5 Malacca 51,933 52,800 98 37,800 28 37,800 -28 50,300 - 5 N. S, zmbilan 167,883 249l000 67 279,000 12 349,W000 40 41,o000 61 Pahang lth8,382 505,000 89 575,000 14 660o,00 31 1,052,500 108 Pcnang 66,368 106,300 62 106,300 0 io6,3o0o 0 106,300 0 Perak 249,075 340,700 73 348,200 2 368,200 8 388,200 14 P3rlis 3,880 9,500 41 9,500 0 9,500 0 9,500 0 Selangor 555,212 499,500 111 512,000 3 524,500 5 543,200 9 Trengganu 107,454 115,800 93 115,800 0 205,800 78 255,800 121 Total 2,271,968 2,653,400 86 2,811,400 6 3,122,900 18 3,702,300 40

* Based on a one shift per day operation Source: FAO Forest Industries Development of Malaysia, 1970. Table III.20: PLYMILL CAPACITY, W, MALAYSIA, 50 CUBIC FEET IN INTAKE TONS OF

E S T I H A T E D P R O D U C T I O N C.A P A C I T Y AculIn 1968 In 1970 States For Hillle :For Hilla log - under construction. app71ved % Total intake % Increase including increase Production Operating Production % or since 1968 those sincy capacity ratio capacity ina 1968 ostablished not ya t 1968 by May 1970 constructed Johore 63,008 90,000 70 90,000 0 110,000 22 137,000 52 K;edah 15,565 20,000 77 32,000 60 32,000o60 32,0OO Kelantan 60 ------Mialacca ------11.Sembilan| - 9,70615,000 65 27t000 80 27,000 80 39,000 Pahang 160 - - 12,000 - 75,000 - 150,000 Penang ------Perak - 63,592 85,000 75 85,000 0 85,000 0 85,000 0 Perlis - - - - - Solangor 38,632 65,o00 60 89,000 37 113,000 74 Trengganu 125,000 92 - . 15,000 15,000 15,000 Total 190,554 275,000 69 350,000 00 66 583,000 112

Source: FAO Forest Industries Development of" Malaysia, 1970. Table III. 21: KXONOMIC PATTERN OF TJI4ER 'BASED INDUST~RIES IN W. MALAYSIA, 1967

9 5S AS', Tin. C.,L A-h QOFC.AACT 1C A% S AS.A OF A$ .%WITINIVALLX OF A5% WIf MIN A-. *f"V.14N 4LT vikut 'AS W4iTHIit AS~X *-I344 P1'.1 TIMgIAII.,IYHI4 Nf AV . -. nt, SALAR16 '4U$4 1UNT_ ES44ILI7Nu(ThIS'UP-It PrI!!. A WTI TYPE SJOC;SI UNIT irypI or ~ UhIT TYPE W0.6RSM UNiT TYEAIOs .,,

70 .7 S Iohs] 0o I Pit I I 351 643 3j 3 54* I

?1*0 I6 I JUT 7 317 4 3. 67*

N 7 17*l 6 31*0 4 6 743 6 l9,1 7 6733 .74 IL37 IS.

I 4AN44* 1 ' 01 10 lb 3076 '4A 4.056 If47471 1 I 44*0 IIV 43

PEN^ttc. 17 bllb77 63 6 41__ A4 __ 403 a 4 714 4___

77 q17 ' 3 76 44 6k 1 3 1147 A 43 is7 J,4 * - 6 4 - 33 4 76 8) 61 .7 1.-C-O .f Al. 4 lq ))S5 I ______7:q - b 7b* * 793 1 16 I 0 ~ 79 i0 $* IC#c~0 3* l7 00'4 '0

-____ I I I

C -a :0Itl 0 0 46644 s to I400 , 0.1 '1S' 4300 .' 1.47 to00 e7

FL4: ONAV 11 3(10 b4 0q o il - o ?bbS100 14 13191 1 to i 73 W 0

' '"c0uril'RY 60 7- 0 40 1 400 414 043to0 334 03 040 1 300to *.0 Docn'R

IoiNA10 1,0 300 (sit Q1 to100 4 o 4 -. 4 I 0 1I O,I 1 I 0

f00V~JNr411 4fb 4747 3V41771 7 ? 09179 1.7I 1,7.1* 464 471I0 16.6 hIll7 oS.b

TOT'AL

I4TJ7VR-e5 COUN4TRY 79: 00 310,444 100 14 6646 100 6 415$13 00 £7310 400o 70301* 300

SOURCE'. FOREST INDUSTRIES DEVELOPMENr PROJECT TABLE III.22: PRINCIPAL STATISTICS - STATE BY MAJOR INDUmRIEES, 1968 (in $ '000)

Gross Val. No. Pd. Employees Sales of Value of Stocks State/Major Ihdustries Value at 31st December Salaries No. of Own Mfg. Cost of Opening Closing Added Full Time Establi- Products Materials Part Time Wages Pail (incl. sbi,.ants Purchased home workers) PAMHANG Rubber Remilling & Latex Processing off Estates 2 6,096 14,693 1,166 1,277 Sawmills 1,513 161 1 329 56 42,728 27,381 1,606 2,189 Other Industries 15,931 2,719 143 8,146 345 7,858 4,623 378 511 3,368 687 137 1 ,170 Total 403 56,682 36,697, 3,150 3,977 20,812 3,567 181 9,645 KEAITANI Rubber Remilling off Estates 2 16,482 13,519 565 905 Rubber Smokehouses 3,303 1453 - 396 off Estat.es 2 10,552 9,969 1,027 1,280 Sawmills 26 837 296 - 239 8,326 5,077 959 983 3,272 Textiles 27 960 38 1,627 2,365 1,787 171 219 Chemicals & Cieimical 626 165 356 275 Products 4 2,901 1,051 1149 102 1,802 Other Industries 296 420 2 431 10,021 7,412 992 1,315 2,933 1,226 217 1,128 Total 357 50,647 38,815 3,863 4,8014 12,773 3,120 613 14,o96 T.UE}NGGOA!TJ Sawmills 18 7,572 5,0214 5714 604 Other Industries 2,578 821 21 1,675 270 3,637 2,582 1,039 1,556 1,573 558 93 999 Total 288 11,209 7,606 1,613 2,160 14,151 1,379 1114 2,674

...... -. Table III.23: EAST COAST STATES - SAIMILLS - PRINCIPAL STATISTICS, 1968

State No fCosts Establish- of Gross- Value Mlaterials PdEmoees S-at -- ...... nents Valuearies _-_ -- n - of salesalealaie & Purchased Added Time Time Wages Kelantan Paid 26 8,326 5,077 3,272 960 38 Trengganu 1,627 7,572 5,024 2,578 Pahang 821 21 1,675 56 42,728 27,381 15,931 2,719 Total East Coast 43 8,146 100 58,626 37,482 21,781 4,5oo 102 11,448 Total West Malaysia 384 193,077 125,480 68,757 13,375 504 32,379 3. Coast as % of Malaysia 26.0 30.4 29.9 31.7 33.6 20.2 35.4 Table III.24: W. MALAYSIA - EAST COAST STATES (SELECTED INDUSTRIES) VALUE ADDED PER ESTABLISHMENT AND EMPLOYEE, 1968 No. of Establishments Value Added Value Added! E.- W. Estab'ment. VleAd ?/l1 % E. 5. W. E. E. e Coast M'sia. Coast W. % E. E. W. Coast M'sia. Coast Coast M 'sia. E Coas t Coast M'sia Coas Crude Coconut O.Mills 9 65 13.8 168 8629 1.9 18.7 132.7 14.1 2897 9390 Small 30.9 Rice Mills 369 910 h0.5 710 h506 15.7 1.9 4.9 38.8. 1134 2226 50.9 Bakeries 67 412 16.3 466 6473 7.2 7.0 15.7 44.6 2894 3410 84.9 Coffee Factories 16' 191 8.14 160 4408 3.6 10.0 23.1 143.3 2667 4526 58.9 Ice Factories 10 .51 t9.6 643 51418 11.9 64.3 106.3 60.5 8038 9183 87.5 Soft Drinks 10 68 14.7 303 16237 1.9 30.3 238.8 12.7 2913 8897 32.7 Footwear 114 160 8.8 31 163Q 1.9 2.2 10.2 21.6 1722 2911 Furniture 59.1 87 660 13.2 722 10319 7.0 8.3 15.6 53.2 2490 3289 75.7 Printing Publishing 21 371 5.7 523 52558 1.0 214.9 141.7 17.6 2410 5478 144.0 T7-re Retreading 11 186 5.9 230 14324 5.3 20.9 23.2 90.1. 5111 4869 105.0 Ind. YMachinery & Parts 12 224 5.4 420 15420 2.7 35.0 68.8 50.9 2878 3697 77.8 Tinsmitting 46 496 9.3 127 18914 6.7 '2.8 3.8 73.7 1896 2102 90.2 Textiles 27 60 145.0 626 19533 3.2 23.2 (Kelantan only) 325.5 7.1 1706 39514 143.1 Hardware tools & 13 226 5.8 Cutlery 72 9414 7.6 5.5 4.2 130.9 2667 2458 108.5

------Table III.25: W. M-ALAYSIA, DISTRIBUTIVE TRADES, PER. CAPITA TURNOVER BY CATEGORY AND REGION, 1966 (V

Region Catering Retailing 1Taolesaling Total

South 32.9 308.0 461.5 802.2 Central^ 58.5 3614.6 962.1 1385.3 North-Central )40.8 279.7 529.2 8h9.7 Uorth 22.3 205.6 598.7 826.6 East 22.8 175.2 175.2 373.3

Total 36.3 270.5 568.6 875.4 Table III.26: W. MALAYSIA - SELECTED TOWNS - RATIO OF WHOLESALING TO RETAILING TURNOVER, 1966

Toin Ratio Town Ratio EAST REGION CENTRAL REGION

Kuantan 1.60 Klang l.94 Bentong 1.45 Kuala Lunpur 4.74 Kuala Lipis .0;54 Petaling Jaya' 2.58 Raub 2.00 Ampang 0.22 Temerloh/ 1.33 Kajang 0.74 Kuala Trengganu 1.34 Seremban 3.13 Dungun O.75 Kuala Pilah 1.51 Kemaman 1 .19 Kota Bharu 2.54 Pasir Mas 0.88 Tumpat 0.41 Peringkat 2.60

NORTH REGION SOUTH REGION

Georgetown 4.38 Malacca 4.51 Bt. Mertajam 4h.83 Johore Bahru 2.30- Butterworth 3.58 Muar 1 .24 Ayer Hitan 0.23 Segamat 3.20 Alor Star 2.83 Kluang 1.56 Sungei Petani 1.87 Batu Pahat 1.09 Kulim 1.50 Pontian 1.60 Tangkak O. 84 NORTH CENTRAL REGION Kulai 2.24 Ipoh 2.77 Taiping 2.42 Telok Anson 1.98 Kuala Kangsar 4.70 O.Q5 Kampar 1.88 Sungei Siput 1.h8 o.L6 Tapah 2.61 1.74 Table III.27: MALAYSIA, RAIL ORIGIN AND DESTINATION DATA, TOTAL GOODS TRAFFIC TO KELANTAN STATIONS, hth QUARTER 1971 & 1st QUARTER, 1972

Perlis Sembi- & Penang Port Commodity 3elan- lan & Singa- Class Kedah Penang Port Perak Klatig gor Malacca Johore Pahang pore Total Diesel & Fuel Oil 12774 313 13087 Cement 4783 4794 10 9587 Logs 8 130 166 304 Fertilizer & Manure 11 113 380 lh6hl2 2075 28 262 7511 Rubber 15 hi 56 Latex

Rice & Grains 37 10 5 52 Iron & Steel h 5 266 20 222 13 11 5h1 Ougar 14h 5123 1131 2 6270 Beer & Stout 10 29l 227 2 2 535 Gas in bulk & cylinder 2 401t 8 bi1ll Petrol 4404 3 bO07 Kerosene & Paraffin 2731 24 2755 Milk & Milk Powder 3 1770 4 1777 Animal Feed 139 1450 1IJ 603 Asphalt & Bitumen 710 710 Others 33 1478 3737 480 1452 271t9 1141 161 1118 92 11ih1 TOTAL. 6oon5o Table III.28: MALAYSIA, RAIL ORIGIN AND DESTINATION DATA, TOTAL GOODS TRAFFIC TO KELANTAN STATIONS, hth QUARTER 1971 & 1st QUARTER, 1972

Perlis Negri Sembi- & Penang Port Comnodity Class Selan- lan & Singa- Kedah Penang Port Perak Klang gor Malacca Johore Pahang pore Total

Diesel & Fuel Oil 4 4 Cement 671 30 61 44 25 831 Logs 929 2673 772 22390 9889 63920 100573 Fertilizer & Manure 267 201 312 1 781 Rubber 26 261 192 8155 764 210 286 15 9909 Rice & Grains 790 79 210 49 1128 Palm Oil 2978 96 25 3099 Iron & Steel

Kerosene & Paraffin 3 3 Milk & Milk Powder .4 Others 40 97 58 233 58 426 132 42 178 609 1873 Total 11 8205 Table III.29: MALAYSIA HIGHWAY ORIGIN AND DESTINATION SURVE:Y, STATION (KUANTAN NORTH). AVERAGE 71 DAILY TRANSPORT OF GOODS TO KErL TAN AND TRE1NGGANU, JUNE 1°071 Penang Rest Rest Kedah of Negri h of Commodity Class Selan- Sembi- Mal- Perlis Perak Klungo Pa- Singa- lan acca Johore Kuantan hang Total Processed Foods 6.o 5.5 26.7 4.9 h.5 25.5 2.9 Textiles 76.0 & Paper Prods. 0.6 o.4 h.o 0.1 4.0 1.8 Household 10.9 Furnishings o.6 1.1 0.7 1.6 0.9 4.1 Misc. Mf'd. 1.7 10.7 Consumer Goods 0.4. 1.7 3. Petroleum Products 5.9 3.3 18.1 33.2 * 0.1 Machinery 54.7 0.3 0.9 1.8 7.6 lo.6 Chemicals & Fertilizers 8.8 1.0 -7.1 Construction 3.1 20.0 Materials 3.7 1.5 25.3 5.6 1.2 22.1 0.7 60.1 Sawn Timber & Plywood 1.4 4.3 1.0 12.0 10.9 Misc. Industrial Goods 29.6 2.9 Logs 2.9

Latex 5.1 5.1

Processed Rubber

Coconut/Palm Oil & Kernels 0.5 0.2 Unprocessed 0.7 Food 8.7 0.5 0.3 3.0 Rice 4.9 17.4 o.6 0.3 Misc. Raw 0.9 Materials 0.3 Total 0.3 305.8 Table II.30: MALAYSIA HIGHWAY ORIGIN AND DESTINATION SURVEY, STATION 71 (KUANTAN NORHII). AVERAGE DAILY TRANSPORr OF GOODS FROM KELANTAN AND TRENOGANU, JUtIE 1971

renang Rest Rest Kedah of Negri of. & Solan- Sombi- Covumodity, Class Mal- it- Singa- Perlis Poralc Klang gor lan acca Johore Kuiantan hang -pore. Tta Processed Foods 0.3 2.6 1.4 11.7 16.0 Textiles & Paper 0.9 0.3 1.8 1.2, 4.2 lH'ld. goods & Furniture 1.6 . 0.1 0.1 0.9 2.7 Misc. Xf'd. Consumer Goods 1.3 0.3 1.6 Petroleum Products 1.6 12.3 13.9 Machinery 3.8 3.4.' 7.2 Chernicals & Fertilizer 0.4 0.4 Construction Materials 2.0 1.4 3.4 Sawn Timber & Plywood 3.1 11.9 42.6 10.0 13.4- 10.7 91.7 Misc. Industrial Goods 0.0 Logs 12.7 24.7 76.1 8.2 13.5 135.2 Latex O.O Processed Rubber 1.7 16.4 3.3 12.1 1.6 35.1 Coconut/Palm Oil & Kernels 4.0 1.4 4.5. 0.7 10.6 Unprocessed food 0.7 8.1 6.1 22.2 0.2 10.1 47.h Rice 7.5* 25.O 32 5 Tin and linerals 1.7 1.7 Total 403 .6 Table III.31: MALAYSIA HIGHWAY ORIGIN AND DESTINATION SURVEY, STATION (KUANTAN WEST) 70 AVERAGE DAILY TRANSPORT OF GOODS FROM JUNE 1971 KUANTAN,

Penang Rest Rest Kedah of Negri & of" Selan- Sembi- Mal- Commodity Class Perlis Pa- Singa- Perak niang gor lan acca Johore h ang- Kuantan -pore Total Processed Foods o.6 0.3 10.9 0.6 2.6 21.7 17.0 0.4 54.1 Textiles 3.0 O.4 1.3 i.*4 2.9 9.0 Household Furnishings 3.1 1.2 6.8 4.6 15.7 Msc. Mf'd. Consumer Goods 1.4 0.2 0.3 4.6 9.7 16.2 Petroleum Products 2.0 3.6 19.5 24.1 49.2 Machinery 5.6 0.3 0.4 6.5 7.1 19.9 Chemicals & Fertilizer 4.5 2.8 1.8 9.1 Construction Materials 4.7, 66.0 202.8 273.5 Sawn Timber 6.1 67.1. 56.9 3.3 20.4 81.2 21.0 256.0 Misc. Industrial Goods 2.6 0.9 1.1 14.6 Logs 12.3 25.8 7.3 45.7 38.4 42.1 132.5 21.4 325.5 Processed Ruber 7.9 1.4 5.0 7.2 21.5 Coconut/Palm Oil & Kernels 3.0 5.2 0.5 8.7 Tin & Minerals 2.9 0.3 3.2 Unprocessed Foods 3.7 0.1 4.5 14.3 0.5 9.7 21.5 8.7 53.0 Rice 7.9 8.14 8.2 24.5 Misc. Raw Materials 1.1 1.7 2.6- 12.14 17.8 Table III.32: MALAYSIA HIGHWAY ORIGIN AND DESTINATION SURVEY, STATION (KUANTAN WEST) 70 AVERAGE DAILY TRANSPORT OF GOODS TO JUNE 1971 KUANTAN,

Penang Reat Rast Kadah of Negri & of ComrnodityCmdtyCasPerlis Cla3ssE>GL Solan- Senbi- Pa- Perak Klang gor, lan Malacca- Singa- Johorg hang Kuantan pore Total Processed Foods 6.2 0.4 46.3 2.5 3.9 10.5 17.0 0.7 87.5 Textiles & Paper Prods. 0.14 0.1 7.4 C0.9 3.14 0.8 2.9 15.9 llousehold lirnishings 3.6 6.8 2.7 1.3 6.3 . 4.6 25.3 MIsc . Nf'd. Consumer Goods 0.3 11.9 0.1 1.14 1.3 9.7 24.7 IPetroleum Products 1.14 10.4 6.5 3.3 0.9 0.9. 24.1 15.8 63.3 Machinery 1.5 0.9 13.9 0.4 2.5. 7.1 0.7 27.0 Chemicals 3.7 3.8 114< 2.8 3.5 15.2 Construction Materials 2.7 38.8 3.4 0.3 3.8 202.8 251.8 Sawn Trimber 1.4 3.3 35.3 81.2 121.2 Misc. Industrial Goods 1.00 0.6 1.0 3.7 Logs 1.0 111.9 132.5 245.14 Processed Rubber 1.7 3.1 5.0 9.8 Oil Palm 0.9 5.4 0.9 2.7 0.4 4.4 114.7 Tin amd Minerals 2.4 0.3 2.7 Unprocessed Food 14.1 0.14 0.1 0.4 0.1 7.3 21.5 0.8 314.7 Rice 1.4 14.5 1.0 8.2 15.1 Misc. Raw Materials 0.3 0.3 12.4 1 .o Pinoapp1ss 0.1 0.1 Table IV. 2: KELANTAN - ACREAGE OF LAND IN SOIL SUITABITITY CLASSES BY DISTRICT FOR SPECIFIED DESIGNATIONS, 1966

Alienated Other for Reservation Sol; Agri- Malay Porest or District Categories culture Reserves Reserves Alienation Total Kota Bharu 1 & 2 3 85,077 - - 7,21h5 92,322 & 5 4,34I7 - - - .6,831 Total 80,4214 - - - 99,153 Tanah Merah 1 & 2 73,278 10,350 1 3,86 5,175 102,672 3 40,572 6,624 4,761 1,449 53,406 4 & 5 27,324 99,774 35,604 33,741 196,443 Total 1l4i,174 116,748 54,234 ho,365 352,521 Pasir Mas 1 & 2 74,931 4,068 7,866 .1,656 89,h24 3 25,875 20,700 12,213- 2,070 60,858 4 & 5 3,519 3,726 - 1,h449 8,694 Total lo4,328 29,394 20,079 5,175 158,976 Ulu. Kelantan 1 & 2 39,123 19,458 32,292 17,802 108,675 3 121,923 29L4,768 68,103 117,369 602,163 4 & 5 35,362 1,304,51l 354,384 357,075 2,050,335 Tota.l 195,[v08 1,618,740 454,779 [492,2[46 2,761,173 Tumpat 1 & 2 38,088 - 414 1,656 40,158 3 - - - - 4 & 5 - 2,070 - - 1,863 3,933 Total 40,158 - 414 6,519 [4h,091 Machang 1 & 2 65,826 414 3,726 3,105 73,071 3 5,175 - 621 621 4 & 5 6,l417 4,761 207 44,505 1,863 51,336 Total 75,762 621 48,852 5,589 130,824 Bachok 1 3& 2 24,4;26 - - 207 24,633 4 &. 5 31,050 621 - 11,592 433,884 Total 55,476 621 - 11,799 68,517 Pasir Puteh 1 & 2 66,861 3,519 828 1,242 72,4.50 3 414; 207 h - - 621 & 5 18,630 3,105 8 fi173 1,863 31,671 Total 85,905 6,831 8,901 .3,105 lo4b,742 State 1 & 2 467,613 38,709 58,995 38,088 603,4o5 3 193,959 322,299 85,698 121,509 it & 723,465 5 126,063 1,412,568 442,566 411,930 2,393,127 Total 787,635 1,773,576 587,259 571,527 3,719,997 Table IV,l: KETAIiTAN\ DESIGNATION OF LAND BY CATEGORY, 1966

Category Acres Percent

Statelanid 282, 969 7.6 Alienated for agriculture 787,635 21.2 Alienated for mining 1,656 neg. Malay reserves 1, 773,576 *47.7 Grazing reserves 11,385 0.3 Forest reserves 587,259 15.8 Game reserves 261,234. 7.0 Alienated/reserved for other purposes 1L,283 O.L

Total 3,719,997 Tabie IV.3: PAHADNG - DESIGNATION OF LAND BY CAT.mORY

Category Acres Percent

Stateland 4,633,695 52.3

Alienated for agriculture 803,574. 9.1

Alienated for mining 47,1l6 0.5

Malay reserves 582,2Q1 6.6

Aboriginal reserves 9,522 0.1

Grazing reserves 5,175 neg.

Forest reserves 1,945, 93 21.9

Game reserv'es 828, 828 9.3

Alienated/reserved for 14,076 0.2 other purposes

Total 8,869,950 Table IV.14: PAHANG, ACREAGE OF LAND IN SOIL SUITABILITY CLASSES BY DISTRICT FOR SPECIFIED DESIGNATIONS, 1966

Alienated Other for Reservation Soil Agri- Malay Forest or District Categories culture Reserves Reserves Alienation Total Kuantan 1 & 2 n.a. 99,567 38,709 167,463 3 n.a. 110,1214 44,919 14&5 178,1434! n.a. 25.0,677 88,803 . .401,1478 Total 6o0651 460,368 172,1431 56,925 750,372 Bentong 1 & 2 6,831 14,69.7 86,526 3 22,770 143,263 14% 5 97,911 2 120,267 110,538 268,893 Total 123,786 149,868 168,L98 11,178 453,330 Temerloh 1 & 2 177,192 25,0147 3 250,677 196,029 208,035 853,875 4 P&5 153,594 77,004 3140,722 Total 272,412 526,815 310,086 156,285 1,14145,274 Pekau 1 & 2 370,116 1714,087 610,857 3 395,577 131,858 568,629- 4 & 5 - 776,0143 282,122 1,152,990 Total 72,657 1,5141,736 588,o67 129,996 2,332,476 Raub 1 & 2 15,529 35,601 110,331 3 15,732 30,222 14& 5 83,2114 256,1473 61,686 1485,622 Total 109,710 287,730 127,512 43,884 568,836 Cameron 1 & 2 Highlands 3 8,487 14114 13,0o41 4 & 5 136,620 8,6904 156,906 Total 15,111 145,107 9,108 621 169,947 Lipis 1 & 2 1,41/9 1,14149 3 8,073 140o4,892 62,928 634,2148 4 & 5 489,555 39,123 692,200 Tolal 90,0145 895,896 103,500 211,1140 1,334,529 Jerantut 1 & 2 188,991 1614,361 607,131 3 34,560 17,595 It & 5 122,130 402,6214 2814,415 1,085,922 Total 59,202 626,175 1466,371 663,435 1,815,183 State 1 & 2 859,671 458,594 1,841,o58 3 1,188.180 539,235 1h & 5 2,551,482 2,585,8414 9147,4014 4,177,414 Total 803,574 4,633,695 1,9145,593 1,0o04,797 8,869,950 Table IV.5: PRESENT AND PROJECTE FUTURE LAND USE (IN ACRES)

T------:Land classification total : present fputue category a acreage , land use land use ------,highly suitable to ' s uitablet 630,000Q(l) * 139,000 383,000'' for tree crops . l a a . .~ '. ., locall y suitable for l . :tree crops and ' 350,000 ' 23,000 ' 82,000 sawah padi . a a* I . . I highly suitable to a ' marginally suitable , 190,000 56,000 ' 87,000 for sawah padi suitable for coco- l a 'nut and cashew-nut a 90,000 20,000 a 50,000 I only ' _'_'_'_ _ _ _ _ total : 1,2260,000' 238,3238, o02,4)000'')602,

------L------

* (1) Included are 160, 000 acres of s'oils highly suitable for tree crops especially oil,palm, rubber, cocoa and annual crops. (2) The soils of 'the Kuala Brang-Marang association with a slope of 0-12 degrees have been included in the future planning for the development of oil palm and rubber wherever the presence of areas of at least 1,000-2,000 acres made this possible. (3) Peat soils havie not been included in any category listed above. Shallow peat soil is present in limnited areas only; deep peat swamps prevail in abundance. Given the ratios of the cost of rendering the land suitable for agriculture to the possible benefits, there are sufficient other soils w-ith the potential of higher returns. (4) The total present land use is in the order of 290,000 acres, but part of the soils used are unsuitable. (5) The present land use on unsuitable soil (mnainly rubber) is supposed to decrease by roughly 50 per cent bringing the future land use to 625,000 acres in rounded figures. *+4 tsG rRICUIAUIU.L DEVZLOYMTOT SCIHEDULE: ( c ,;

69 70 f 71 72 1 73 74 75 77 OIL P!i.L Ii.| i| .| (ai)Estate- . t-e - l370 122340 30420 20490 1937 130'C I w116440 (b) 020;0 -.'Lo i6 L212404032;LD. 13600 3362 191 10000 Sub-Total 22340 30420 2049014 ol37979-.5370045590 3,>.. ,0 26440

RUBB37,R IuBr; I I (a) Bst,-,te 6400 2300 25 665830 3e 310io'13870 (b) .12LDD{, 6 000 k j 75-70 6750 Sub-Total I 1T6400 2300 8500i1 65W0 3010 113150 20620

DIV STFTICLTI.0T CROFqRO,| -- (a) Fruits (b) lnnual Crops 60o 700 (c n i hallltolders 2'60 1000 2000 3000 65301 1000 1000

Sub-Totall |1000 20001 36 72307 3 4'60 1000 TAPIOCAI l 500 3001 300 200 16CO 3000 SAGO 500 I f 500 1000 3100 200001 20001000 I_I____TEi. 260 170 170, 260! *COIHOSITE CROPS I I |III I 0 5 00 500 7001

G|iN T2 11TT 2 L 34 |90 45910| 50530 65850 60800150310 -53060 jNOE: Some errors are present due to rounding.

, .

*-,.-***.,*-**-*** !- **--**--- -. 70 al 82 83 841 85 &6. a! t g o0f

co '- 124 ,i ' ___

___L_ 1 1.

5 I Ii I25 t |I'- - * 86-25t13313T42 jCO 5G0tt30 t50r S t S

2ECO 91I5.TS25 t 39&Ot i______

j O3 a 32'2 C3 3 3OI 4, 36cX3 41C0 L I i i r1r1| E51r t r 2-t 3 4

I I [-' 7

3 77F L75t032600

-2 26 2 %ZrI

720 2 37, 7556'. 5C 36O ;J1 '2 33110Ora, F *- ..

~I TABLE 15

COMPARISO?X tt .Ts LOG rGp r c.Anr~ TOF y,-T 7-,XTST1ThG INDUSTRY AND POSSIBLE A'D PROB^BLE LOG OUTTURN4 FROM FORE;ST (Figuires In 'OOO Tons)

Probable Existing Industry Capacity in Catch- Possible Outturn Capacity terms of. Unit ment Outturn fyrsS . ( P robable -Outturn % A 1 132.6 132.6 442.0 333 2 102.0 102.0 79.8 78 3 395.8 395.8 14.2 4 4 280.2 280.2 445.5 159 Total glo.6 910.6 981.5 108 B 1 345.4 295.8 891.9 302 2 16844 144.2 316.8 220 Total 513.8 44o.o 1,208.7 275 C 1 161.8 97.1 202.9 209 2 310.9 186.5 - -O 3 2350.l 138.0 26.2 19 Total 702.8 421.6 229.1 54 D 1 387.8 332.0 93.6 28 2 260.2 222.8 80.1 36 Total 684.0 554.8 173.7 31 1 251.7 157.3 100.0 64 2 432.8 270,5 - 0 3 586.6- 366.6 374.5 102 4 850.5 531.6 293.7 55 Total 2,121.6 1,326.0 768.2 58 F 1 177.0 177.0 294.3 166 2 179.9 179.9 318.6 3 177 262.4 262.4 247.5 94 Total 619.3 619.3 860.4 139 Total W. Malaysia 5,516.1 4,272.3 4,221.6 TTAB 12.

PROBABLE FLRT LY 0 OF Ef43ER

AS AN AVKPAGE PER 5-TFAR PERIOD

O U t t u r n n o 000 T O n Catcbment 1stldtr7 5 year 2nd 5 year 3rd 5 year 4th 5 year

-period period period period

A 1 132.6 132.6 132.6 132.6 2 102.0 102.0 102.0 102.0 3 395.8 395.8 395.8 395.8 4 280.2 280.2 280.2 280.2

Total 910.6 910.6 910.6 910.6

B 1 295.8 310.9 323.8 339.0 2 144.2 151.5 157.9 165.2

Total .440.0 4'62.4 48147 504.2

c 1 97.1 117.3 134.S 152.7 2 186.5 22.4 258.4 293.4 3 138.0 166.8 191.3 217.1

Total 421.6 509.5 584.2 663.2

D 1 332.0 349.0 363.5 380.5 2 222.8 234.2 244.o 255.4 Total 554.8 583.2 607.5 635.9

E 1 157.3 187.2 21o.8 239.1 2 270.5 321.9 362.5 411.2 3 366.6 436.3 - 491.2 557.2 .4 531.6 632.5 712.3 808.0

Total 1,326.9 1,577.9 1,776.8 2,015.5

.1 177.0 177.0 177.0 177.0 2 179.9 179.9 179.9 179.9 3 -262.4 262. 4 262.4 262.4

TT c | .3 619.3 b69.3

To,6l 9 5,'48.7 '. .wia 78ysi1 4,272.3 4 ,662.9 4*9FA.1 5,34.7 Table V.3: PAHANG TENGGARA. ESTIMATED POPULATION SECTOR OF BY ECONOMIC ACTIVITY, RACE AND STATE OF ORIGIN, 1980 (Thousands)

Race State Sector. Malay Chinese Indian- Total Johore FLDA - - Other Primary 5 Secondary & Tertiary - 5 Kedah 5 15 FLDA 10 Other Primary - - 5 - 5 Secondary & Tertiary - - - 20 Kelantan FLDA 20 - Other Primary 5 Secondary & Tertiary 5 Malacca - 30 FLDA 5 Other Primary 5 Secondary & Tertiary 5 - 20 Negri- FLDA Sembilan 10 - Other Primary 5 5 Secondary & Tertiary - - 5 10 - Pahang 35 FIDA 10 Other - Primary - - Secondary & Tertiary 5 5 - 20 Penang FLDA - Other Primary - - - Secondary & Tertiary 10 5 5 20 Perak FLDA 20 - Other Primary 5 5 5 Secondary & Tertiary 10 10 5 60 Perlis FLDA S - Other Primary - - Secondary & Tertiary - - - 5 Selangor FIDA - - Other Primary - - Secondary & Tertiary - 5 - 5 Trengganu FLDA 5 - Other Primary 5 - Secondary & Tertiary - - - 10 Total FLDA 85 - - 85 Other Primary 35 10 10 55 Induced 0o 45 15 100 160 55 25 2140 Figure 1: POPULATION GROWTH 1957-1970 Percent

b s C25

25 29 30 -'34 35 39

,. 55

S~.* A w.2: 4!40 44

T. II.A

A '

O E 1\i mU M- ,I

-s - :, -,- :

r.etR114

\ ar.l~A44',5---I|5-

<4 J h I Figure 2: MALE-FALE RATIO, 1970

< 0.96

< I \ - o0.96 - 0.979

0.98- 0.999

1.0 - 1.011

rp C,4.Cf.J ..

KKh }~~~~~~~~~~~~N 1,. .. 'one.fe*-to^; :.tl.w t~~~~~~~~~~~~~~~~~~~~~~~ ;--- ,,LN,r- , ., , ,, ,,,n, x, .,, ,Iki}r

I Ph C

* -r.'.*'1 - - ....>r.f~. 20 4 0

4 60 Kota Bharu 1950 40 2 4 0 80 20 0 100 0 Penang

11 20 60 2 T 20 oh 410 80 4 1\8 1. 60 0

4 20 2 uantan 20 0

Temerio 4 80 6 Ulal

Mersing 100 20 Malacca

400

RAILWAY OMITTED

NETWORK CHANGE 1939-195

Figure II. 1 Road Density: 1950 60 1958

M }E1'w'.:':. 4-'''^ Io:.v3^'c,': ¾.-

Filgure l:I.2., Rct'?. Density: 1958 20

60>3- :oKrta G.- iru >i

60

100 200X e) "!

t6

!4 1 OR C i I X RAIL'.'iAY 0'._____

- 2. ROAD D1BNSlTY, 1968

...0 1911 1838 019

19

1989

18i7 ,9d1

Figuzre IIJ 4 :. Roicl 1cc -rLworek Di Jb s J.cr \S:ss~~ot l\ > BharuES: IEnSKotBhru

5

| M a S \)\5 a 8 | g''' .m13Mu \ L4 103

fFigueRad Iochrons:SI9: 970 AirRoadTsochones n197 Figuire I.1: FOREST INDUSTRY UNITS AIM CATCHMB MP T'3ES >IY5

THAILAND

e@3AlI

/ I

* A 2 C 2 I * ,

I S2 I A:' I

SIOUsOAUPY Of oiousrwty uN141?

- -TCe4MDET SOUNOA#Y F 3 *SIATg SOSCAWY NOT COIW.C0#IG WITH O1HZ3 *OUNOJAY 2 Fig=re II.5:. RELATIVE COST OF SERVING NATIONAL MARKET

A. W. Yialaysia only. Existing Himghways -

rL

( , * -

-,' r,j~.{,r,. /a -. P

* L'

'SX 8,XXtvt 'h/ ))-

.44

4 5..l .,,u 4. v ..k.

CZ> X. At,Wt - 1.tt1. s>;;-,kr .. '*tv,

7. 2t

.0If I ISU l,,11 mph [ 71 7v Fire .6: RELATIVE COST OF SERTNG NATIONAL MARKET

Ig B. W. Malaysia and Singapo Existing Higha

S. 1*. 1J

|'A-' '-

.,t1 /*#E -iV N ' ;'Tas r~~~I- '' 1 + xk z F S EA

ArI ' * 3. Ajo

x lr t igat § *-128 I .r MZ

4}-s- ;- t;Fy .,bA > 1

7.~~'S.. r"v,{ S1 :{ i. W&

1E, I

7. P 9 91..- 1. %.4 . . 8..~.. .£.- I-- FigUre II.7i RELATIVE COST OF SERVING NATIONAL MARKET

-G. W. Mal.-:ysia - Asuing Use --oifast-lWest Highway

I- 0

*"' s - - \-..\ L*.Tr ,.),, .", - 1 l ,-f e un... r,t17,<, Kw\81,,,,,......

t~~~~%AlelvHx--p

I-"k.

.App . I 4 1. 8 1 Se ) I.n A' I

-Nl4 a i 'Diw ' To--;' §

1 ^ tt2 P- A4\R,/ 3. .'rt A|.r SrIPS n'l.~i~i (W-1 I I ( t K . >~~~~~K. r..ea n;.tUP .t8

t/ol .LC2rNo-q\.r .J* 14"'A \ 1.I \* P -. M M!y O l ttonazsr

|1II-E *1 ,aXbTHo.ptA- fur)*^IE,I PS in¢t[;£rUr

k~~~~~~~o t0u^aR^t I PS in

ti,~~~~~~~~~~~~~~~J^4X¢r orrnrt2trzVs. ttrn1 ; tNar Figue II.8: RELATIVE COST OF SERVING NATIONAL M!ARKET

E. W. Mlaysia and Singapore t/ with Esat-t.West Highwa and Development of Pahang T S;> )Tenggara.

SfK. o

441.1,.Am" -9

. -W8 fltt D - tC1I '.

* ~ ~ ~ *~ * ~ <~ Tt^D~ ~ X - V.

fT,.,c,

$br8bl4° t )r*, it .- VAi,¢ ', *r ; I' 5. I,. qb,%tIi. Ws i,t Lh-nm

,- C- A.

II SU, in

\ -. t:- f I P---.-, Figure V.1: RELATITV: ,ST CF SE7IG lJkTIO9AL NARKET

S.. F. W. Malaysia ony7 - with u;7 'East--West Higha-y and Kuala Krai-I2pis Higlway

7L

I' . 4 1' i

7I.

~{; ~ ;.- ~|X ~ J!: ~ ~ * ~ * ; ' - r'X~ yf >> v>----S-.r.J Zo3 .1 n-wr Figures .2: REATV COST OF SERVIIG NATIONAL AKET

H. W. Malaysia and Singapore with East-West Highway and Kuala Krai-Kuala Lipis Highw

\: Td~~. *x:r-

t 1- AT- 74 |ZZ12 I4 '

I I .

A..;. t I-. '. -' e'\

*' - -- j # -\; *-Sht

S. { . 't. t-