WORLD TRADE
ORGANIZATIONG/AG/N/MYS/13
14 September 2000
(00-3605)
Committee on Agriculture Original:  English
NOTIFICATION
The following notification concerning domestic support commitments ( Table DS:1  and the
relevant Supporting Tables) for the calendar years 1997 and 1998  was received from the delegation of
Malaysia  on 14 August 2000.
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The only existing domestic agricultural support measures applied by Malaysia are those listed in
the attached Supporting Tables DS:1 and DS:2.G/AG/N/MYS/13
Page 2Supporting Table DS:1
DOMESTIC SUPPORT:  Malaysia
REPORTING PERIOD:  calendar year 1997
Measures Exempt from the Reduction Committee – "Green Box"
Measure type Name and description of measure with reference to criteria
in  Annex 2Monetary value of the
measure year in question
RM millionData source
12 3 4
1.  Drainage and irrigation facilities
Construction and provision of drainage and
irrigation facilities to rural farmers.General Services which benefit rural and smallholding farmers. 202 MOA
2.  Research and Development (R&D)
R&D programmes General services provided to most crops and agricultural programmes involving
small scale farmers to reduce unit costs, enhancing efficiency and finding newuses.20 MOA
3.  Marketing
Marketing services General services provided to the agricultural sector.
Marketing of produce is however limited to smallholder produce.20.9 MOA
4.  Extension services
Extension services General services which benefit rural and smallholding farmers and include
pesticide inspection services and transfer of information and  results of R&D to
producers, development of downstream industries and training.1.9 MOA
5.  Price Subsidy and Guaranteed Minimum 
Price
Income Support Both forms of income support measures are provided only to paddy  farmers in the
context of poverty redressal and upliftment of the socio-economic well-being of
paddy farmers.  The GMP is aimed to prevent the price of paddy from falling too
low both seasonally or over a period of time.  The PPS is to ensure the farmers
receive a reasonable income.
Both these forms of income support policies have no effect on trade and there are
no deliberate attempts to maintain domestic price higher than free at frontier/world
prices of rice.420.6 MOAG/AG/N/MYS/13
Page 3Supporting Table DS:2
DOMESTIC SUPPORT:  Malaysia
REPORTING PERIOD:  calendar year 1997
Measures exempt from the reduction commitment – Speci al and Differential Treatment – "Development Programmes"
Measure type Name and description of measure with reference to criteria in Article 6:2 Monetary value of measure
in year in question
RM millionData sources
12 3 4
1.  Fertilizer subsidy
Fertilizer subsidy schemesMeasure is aimed at increasing productivity and inculcating Good Agricultural Practices
(GAP) amongst smallholders.  Amounts granted are limited.  Paddy farmers receive 40 kgs.(2 bags) of urea and 80 kgs. (4 bags) mixture (nitrogen, phosphate and potassium) for everyacre.  Only paddy farmers with paddy land below 2.4 hectares or 6 acres of paddy land are
eligible.114.9 MOA
2.  Investment Subsidies
Credit concessionsMeasure is aimed at reducing production costs and encouraging farmers to be less reliant on
out-right subsidies.  Concessionary credit is also provided to promote innovations in
agricultural practices, promote productivity improvements, hence increasing production and
income.  Credit concessions are limited to individual farmers and smallholders.*nil MOA
*Agricultural credit was discontinued in 1996.G/AG/N/MYS/13
Page 4Supporting Table DS:1
DOMESTIC SUPPORT:  Malaysia
REPORTING PERIOD:  calendar year 1998
Measures Exempt from the Reduction Committee – "Green Box"
Measure type Name and description of measure with reference to criteria
in  Annex 2Monetary value of the
measure year in
question
RM millionData source
12 3 4
1.  Drainage and irrigation facilities
Construction and provision of drainage and
irrigation facilities to rural farmers.General Services which benefit rural and smallholding farmers. 56.4 MOA
2.  Research and Development (R&D)
R&D programmes General services provided to most crops and agricultural programmes involving small
scale farmers to reduce unit costs, enhancing efficiency and finding new uses.18 MOA
3.  Marketing
Marketing services General services provided to the agricultural sector.  Marketing of produce is however
limited to smallholder produce.34.6 MOA
4.  Extension services
Extension services General services which benefit rural and smallholding farmers and include pesticide
inspection services and transfer of information and results of R&D to producers,development of downstream industries and training.5.6 MOA
5.  Price Subsidy and Guaranteed Minimum Price
Income Support Both forms of income support measures are provided only to paddy  farmers in the
context of poverty redressal and upliftment of the socio-economic well-being of paddy
farmers.  The GMP is aimed to prevent the price of paddy from falling too low both
seasonally or over a period of time.  The PPS is to ensure the farmers receive areasonable income.
Both these forms of income support policies have no effect on trade and there are no
deliberate attempts to maintain domestic price higher than free at frontier/world prices of
rice.380.2 MOAG/AG/N/MYS/13
Page 5Supporting Table DS:2
DOMESTIC SUPPORT:  Malaysia
REPORTING PERIOD:  calendar year 1998
Measures exempt from the reduction commitment – Speci al and Differential Treatment – "Development Programmes"
Measure type Name and description of measure with reference to criteria in Article 6:2 Monetary value of measure
in year in question
RM millionData sources
12 3 4
1.  Fertilizer subsidy
Fertilizer subsidy schemesMeasure is aimed at increasing productivity and inculcating Good Agricultural Practices
(GAP) amongst smallholders.  Amounts granted are limited.  Paddy farmers receive 40 kgs.(2 bags) of urea and 80 kgs. (4 bags) mixture (nitrogen, phosphate and potassium) for everyacre.  Only paddy farmers with paddy land below 2.4 hectares or 6 acres of paddy land are
eligible.136.9 MOA
2.  Investment Subsidies
Credit concessionsMeasure is aimed at reducing production costs and encouraging farmers to be less reliant on
out-right subsidies.  Concessionary credit is also provided to promote innovations in
agricultural practices, promote productivity improvements, hence increasing production and
income.  Credit concessions are limited to individual farmers and smallholders.*nil MOA
*Agricultural credit was discontinued in 1996 .
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