SPEECH BY

HONOURABLE DATO’ DR. TAN YEW CHONG

SECRETARY GENERAL OF MINISTRY OF PRIMARY INDUSTRIES
MALAYSIA

22ND MEETING OF THE NATIONAL FOCAL POINTS FOR ASEAN

COCOA CLUB ON ASEAN COOPERATION AND JOINT APPROACHES
IN AGRICULTURE AND FOREST PRODUCTS PROMOTION SCHEME

PULSE GRANDE HOTEL, PUTRAJAYA

17 JULY 2019, WEDNESDAY

Mr. Ravi Muthayah

Deputy Secretary General (Commodity)
Ministry of Primary Industries, Malaysia

Dr. Hj. Ramle Hj. Kasin

Deputy Director-General (Operation), Malaysian Cocoa Board (MCB) cum
Acting Chairman of the ASEAN Cocoa Club (ACC)

Distinguished delegates from ASEAN Member States

Representatives of the cocoa industries

Ladies and Gentlemen

Good Morning and Selamat Pagi.

I would like to extend a warm welcome or Selamat Datang to all the

delegates from Association of Southeast Asian Nations (ASEAN) member
countries as well as representatives from the ASEAN cocoa industry to the
22nd Meeting of the National Focal Points for ASEAN Cocoa Club (ACC) on
ASEAN Cooperation and Joint Approaches in Agriculture and Forest
Products Promotion Scheme to Malaysia. I would like to record my
appreciation to the ASEAN Secretariat on their successful collaboration
with the Government of Malaysia in co-hosting this meeting.
2. We are honoured that this meeting, with a participation of about 60
delegates and industry players including cocoa planters, grinders,
exporters, manufacturers, chocolate and cocoa products producers, as well
as government representatives, is held here in the Federal Administrative
Centre of Malaysia, Putrajaya. It was back in 2014 when Malaysia hosted
the 17th Meeting of the ACC in Kota Kinabalu, Sabah. I would like to take
this opportunity to welcome all of you to the 22nd Meeting of the ACC
meeting after a 5-year gap.

3. The choice of Putrajaya, Malaysia's federal administrative capital and

intelligent garden city is certainly most appropriate as it has emerged from
an expansive marshland and former oil palm estate to a major destination
especially for tourism. It is also one of the most vibrant and dynamic cities
in Malaysia. We hope delegates will be delighted with the Malaysian charm,
friendliness and hospitality.

Ladies and Gentlemen,

4. The establishment of the ASEAN Economic Community (AEC) in

2015 is a major milestone in the regional economic integration, offering
opportunities in the form of a huge market of 2.6 trillion US Dollar and over
622 million people. The AEC envisions ASEAN as a single market and
production base, a highly competitive region, with equitable economic
development, and fully integrated into the global economy. It is hoped that
the through the various committees under ASEAN would continue to
contribute to achieve the vision AEC Blueprint 2025.

5. On this note, the ASEAN Ministers on Agriculture and Forestry

(AMAF) serves as the main ASEAN body that oversees the overall ASEAN
cooperation in food and agriculture. Thus, the outcome of the 22nd ACC
meeting will be presented in the 26th Joint Committee Meeting (JCM26) in
Kota Kinabalu, Sabah on the 24-26 July 2019 and consequently at the
Senior Officials Meeting of the AMAF.

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Ladies and Gentlemen,

6. ASEAN countries are established as important world suppliers

of commodities including cocoa beans. The International Cocoa
Organization (ICCO) noted that in 2018, ASEAN countries ranked as the
3rd biggest producers of cocoa beans in the world and the largest in
the Asia and Oceania region. With an estimated cocoa production of
239,000 tonnes, ASEAN accounted for 5.0% of the world cocoa
production in 2018/2019.

7. In addition, ICCO also notes the cocoa grindings in ASEAN is

expanding to estimated 845,000 tonnes or 17.9% of the world cocoa
grinding in 2018/2019. Collectively, ASEAN countries are the largest
cocoa processors in Asia and Oceania region contributing about
77.1% of the total cocoa grindings in this region.

8. The global prospects for cocoa and chocolate products are highly
promising from both a demand and price perspective due to growing
patterns of consumption. The demand of cocoa products in Asia has
shown a positive growth with the Asian market for chocolate
confectionery has grown at an annual rate of 5%.

9. Despite of this promising scenario, the development of cocoa

beans production in this region continue to drop for the past 5 years.
This is mainly due to challenges faced by the industry, among others
imbalance of growth between the upstream and downstream industries,
lack of interest on cocoa planting, land use competition with other
lucrative crops, high production costs, pest and diseases threats and
limited research and develoment programmes.

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10. There is a strong need to address the concerns of the cocoa industry
to ensure the continuous development and to safeguard the future of cocoa
sector as a dynamic and competitive sector. Therefore, there should be a
concerted strategy by all ASEAN member states to address this issue.

Ladies and Gentlemen,

11. The 22nd ACC aims to strengthen and enhance the Intra-ASEAN
trade on cocoa and cocoa products and serves as a platform to discuss on
the status and progress of cocoa industry by member states. As such,
some pertinent issues to be discussed in this meeting among others are:

(i) ASEAN’s position in the international forum regarding issues on

cocoa;

(ii) to establish strategic partnership and collaboration with private

sector in promoting food safety, investment opportunity,
promotion of agriculture products and market access;

(iii) to strengthen and expand cocoa products trading in ASEAN

region; and

(iv) to encourage cooperation in research and development (R&D)

for agriculture products, food and forestry.

12. In line with this, I note that the meeting yesterday had deliberated on
issues related to tariff and non-tariff barriers on cocoa beans and cocoa
products under the ASEAN Trade in Goods Agreement (ATIGA) and
ASEAN countries free trade zone (AFTA) issues related to food safety as
well. Reports on collaboration projects in research and technology
extension were also presented. The views of the associations and cocoa
related agencies namely Cocoa Association of Asia (CAA), Cocoa
Manufacturer’s Group Malaysia (CMG), Indonesia Cocoa Industry

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Association (AIKI), Cocoa Foundation of the Philippines (CocoaPhil) and
Vietnam Cocoa Committee (VCC) were too considered.

13. Similar to other countries, Malaysia is not spared and subject to

economic uncertainties which would have a negative impact on the
sustainability of the cocoa industry in this region. The 22nd ACC meeting
should be tasked to look into the future and pre-empt strategies on the
likelihood of a drastic market downturn. It is also my hope that this 22nd
ACC shall provide tangible results, implementable strategies and keep the
market for all our growers and traders. I am confident that with these
measures and initiatives, the cocoa industry shall continue to be a reliable
and sustainable source of income.

14. With this in mind and drawing from the current trend of cocoa beans-
to-bar, the ACC should give more focus to ensure long term sustainability
and better remunerative income to the growers with the appropriate policies
and agreement. Thus, close collaboration between governments,
industry players and local communities is vital to address the
negative impacts and creating an effective implementation of the
sustainable cocoa development plan of action.

Ladies and Gentlemen,

15. It is my sincere hope that everyone here will be able to benefit from
this meeting towards the betterment of the cocoa industry. Before I
conclude, I also hope all delegates will enjoy your stay in Malaysia. I
understand that a field trip is part of the schedule. I personally hope that it
will provide the opportunity to experience the richness, diversity and the
hospitality of the multi-racial cultures in this country. There are plenty of
things to see and do in Malaysia. Do take back with you lasting sweet
memories to share with your families and friends.

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16. Finally, it is with great pleasure that I hereby officially declare open
the 22nd Meeting of the National Focal Points for ASEAN Cocoa Club
(ACC) on ASEAN Cooperation and Joint Approaches in Agriculture
and Forest Products Promotion Scheme.

Thank you and Terima kasih.

Ministry of Primary Industry

17 July 2019