Kuala Lumpur: Deputy Minister of Agriculture and Food Security, Datuk Arthur Joseph Kurup, said he is confident that fresh durian from Malaysia, which is in the premium segment, can compete and continue to grow in the Chinese market.
He said among the main challenges faced by the Malaysian durian industry in maintaining the competitiveness of fresh durian is production that cannot meet demand.
“Currently, durian from Malaysia is in high demand from China, Singapore and Hong Kong and the size of the fresh durian market in China in 2023 is worth RM32 billion,” he said.
However, he said, the demand for fresh durian for the export market cannot be met by current production. The supply of fresh durian fruit is only limited to the harvest season, usually twice a year.
“At the same time, the short shelf life of fresh durians, where durians are harvested, needs to be exported immediately and marketed within three to four days to maintain freshness and quality.
“This is different from fresh durians from Thailand and Vietnam which have a longer shelf life of up to 25 days due to the practice of harvesting before maturity.
“In addition, the logistics cost of exporting fresh durians to China in a short period of time requires air transport at low temperatures, resulting in higher shipping costs compared to fresh durians from Thailand and Vietnam which are sent by land route,” he said.
Arthur said Malaysia obtained the fresh durian market route from Malaysia to China on June 19 last year when the Protocol on Phytosanitary Requirements for the Export of Fresh Durian Fruit from Malaysia to China was signed by both countries.
He said with the approval of 95 farms and 48 packaging facilities by the General Administration of Customs of China (GACC), Malaysia began its first export of fresh durian to China on Aug 24 last year with a quantity of 40 metric tons via air shipment.
From Aug 24 to Dec 31 last year, data from the Department of Statistics of Malaysia recorded that 413.61 metric tons of fresh durian from Malaysia worth RM24.84 million were exported to China.
“Based on a survey by the Agricultural Advisory Office (AAO) in Beijing, Malaysian fresh durian has received a very encouraging response in the Chinese market, where the popularity of Malaysian durian is considered premium,” he said.
Arthur said Malaysian durians are now available in 16 provinces in China, including Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin and Chengdu. The Beijing Agricultural Advisory Office is also actively implementing promotional activities for consumers in China to get to know the characteristics and advantages of various varieties of Malaysian durian.
Arthur also said the Ministry always supports any entrepreneur who wants to implement large-scale durian cultivation.
However, he said, the power to issue land grants lies under the jurisdiction of the state based on the Ninth Schedule of the Federal Constitution.
To assist durian plantation entrepreneurs in Pahang State, DOA has also provided areas in the Permanent Food Production Park (TKPM) for durian cultivation.
“During the 12th Malaysia Plan, KPKM through DOA has provided incentives for durian cultivation under the Long-Term Fruit Crop Development Project.
“For the years 2021 to 2024, a total of 4,762 people have received benefits such as farm infrastructure development, agricultural inputs and farm equipment from this programme.
“To encourage investment in food production including durian, KPKM offers the Food Production Promotion Tax Incentive under the Income Tax Act 1967 as an injection to implementing companies and investors to implement upstream projects in the agro-food sector,” he said.
Arthur said this tax incentive entitles companies to receive the benefit of a 100pc business income tax exemption for up to 10 years and income tax deductions based on eligible capital expenditures.
He said before starting a durian planting project or expanding a durian planting project, entrepreneurs can apply for this incentive to the Ministry.
