Assignment Financing Accounting

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1.0

INTRODUCTION
Regional Development Authority is a huge step by the early government of
Malaysia to restructuring and develops local people in the rural area. Undoubtedly
the most outstanding achievement of post-independence Malaysia is its national and
rural development. The entire country has been transformed as never before in
centuries of colonial rule. More than 200,000 acres of new land comprising some 75
land schemes have been opened up and more than 16,500 families-once landless
and helpless, find a new way of life and a new hope in these schemes.

2.0

BACKGROUND AND HISTORY
2.1

JOHOR TENGGARA REGIONAL DEVELOPMENT AUTHORITY (KEJORA)
The idea of established of Johor Tenggara Development Authority was the

brainchild of the late Tan Sri Hj. Othman bin Hj. Mohd Currently, the Chief Minister of
Johor and discussion between him and the late YAB TunHj. Abd. Razak bin Dato
'Hussein, Prime Minister (1970-1976).
Based on the discussion, Hunting Technical Services Limited has been
appointed to prepare a master plan for economic and social development of the
Southeast Johor. The study was completed in August 1971.
KEJORA established on 1 June 1972 under the Johor Tenggara Development
Authority Act 1972 (Act 75) and state enactments (enactment of the Johor Tenggara
Development Authority in 1972), which provides some functions and powers to
develop southeastern region of Johor. KEJORA operation area involved 2 districts in
Johor, Kota Tinggi and Kluang covers an area of 300.364 hectares.
2.2

KEDAH REGIONAL DEVELOPMENT AUTHORITY (KEDA)
Review of National Development Planning Committee (NDPC) in 1979, there

was a gap of poverty and unbalanced development between the territory of KEDA
and MADA

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KEDA was established under the Act 249 and Act Kedah Regional
Development Authority (KEDA) 1981, was launched by Dr. Mahathir Mohamad
(Deputy Prime Minister) on May 28, 1981.

The main focuses are housing

development, agriculture, industry and trade. Besides, KEDA also concentrated on
control and coordinate the implementation of activities in the area as well as social
and economic development.
2.3

SOUTH KELANTAN DEVELOPMENT AUTHORITY (KESEDAR)
KESEDAR is one of the Rural Development Authorities (RDAs) under Ministry

of Rural and Regional Development was established on March 2, 1978 under Act 203
South Kelantan Development Authority Act 1978.
The formation of KESEDAR officially was launched and completed by the late
Tun Hussein Onn, the third Prime Minister of Malaysia on March 5, 1978 in Batu
Gajah, Tanah Merah Kelantan.
The goals of KESEDAR establishment are to balance the ratio of population
density between South and North Kelantan, addressing the issue of poverty
eradication and restructuring of society.
South Kelantan is located in the southern state of Kelantan bordering
Thailand in the north, west of Perak, Negeri Pahang State in the south and east.
KESEDAR region covers an area of 1.234 million hectares, comprising the entire
Gua Musang (797.976 hectares) Kuala Krai (235.689 hectares), Jeli (128.304
hectares) and part of Tanah Merah (72.263 acres).

Tanah Merah; 7226300%; 6%
Jeli; 12830400%;
10%
Gua Musang;

79797600%; 65%
Kuala Krai; 23568900%; 19%

Figure 1 : The Pie of Total Population in Provinces of KESEDAR
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The duties and role KESEDAR described by Section 4 (1) of the 1978
KESEDAR are develop, promote, facilitate, undertake, control and coordinate the
development of economic, social, housing, agriculture, industry and trade in South
Kelantan region.
On the other hand, KESEDAR aimed at:
a) developing rural Kelantan Selatan towards ways overall planning and
development;
b) providing a channel for financial allocation and staff to develop the South
Kelantan; and
c) Restructure the Kelantan population that is largely focused on the north
(northern Kelantan density ratio: Kelantan Selatan is 58.8 persons / km: 8.7
persons.

3.0

CORPORATE PHILOSOPHY, MISSION AND VISION
3.1

Vision is making the region prosperous in 2020

3.2

Mission is leading regional development through empowerment of human
capital and economic establishment of strategic and effectiveness.

3.3

Establishment objective is based on the strategic of New Economic Plan to
reduce unstable of economic, create a various job opportunity and to realize a
new economic development opportunity in regional areas..

3.4

As the lead agency to promote the rural areas as one of the most advanced
and developed region in Malaysia.

3.5

Objectives :
i.

balance the ratio of population density

ii.

turn down the development gap between regions

iii.

Prepare facilities of infrastructure and amenities of social.

iv.

increase the socioeconomic of level and alleviate poverty

v.

develop human capital

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4.0

THE POLICIES, STRATEGIES AND PROGRAMMES ADOPTED BY REGIONAL
DEVELOPMENT AUTHORITY TO ALLEVIATE POVERTY
KEJORA, KEDA, and KESEDAR are the regional development agencies
established for balancing development in the physical and socio- economic between
less developed and advanced regions. Programs implemented include the
construction of basic infrastructure, opening and construction of new settlements that
have been successful in creating economic opportunity and jobs to the rural areas.
There are several policies, strategies and programs adopted by these
regional development authorities to alleviate poverty as follows:
4.1

KEJORA
4.1.1

INDUSTRIAL SECTORS
An industrial development in KEJORA industry has been developed

area in 670 acres, complete with infrastructure, namely the City Bidder and
southeast. To meet future needs, KEJORA has plans to open new industrial
areas involving the implementation of an integrated industrial development.
The new industrial area will place IKS for the local market and overseas.
4.1.2

AGRICULTURAL SECTORS
KEJORA also has an agricultural area covering 2364 hectares of

mixed crops cultivated by 128 operators based agriculture and livestock.
Climatic conditions and topography are suitable to be a factor for the success
of the agricultural sector and thus enhancing the contribution to the economy
in the region KEJORA.
In addition, KEJORA get very good support from the State
Government and the Federal Government provides financial assistance for
particularly of providing infrastructure to serve the development of agro-based
industries.
Although, there are some constraints that hinder the growth of this
sector such as the shortage of entrepreneurs capital, land area is less
economical and inadequate personnel. This situation coupled with the
volatility of market prices, a weak marketing system, the problem of the
dumping of agricultural products and dependence on foreign labor and input
costs are higher affected the progress of the agricultural sector in the region
KEJORA.
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4.1.3

TOURISM SECTORS
KEJORA tourism sector has great potential based on the strength of

existing tourism resources such as cultural diversity, heritage, historical, and
natural heritage of the nation, especially in the villages’ traditional KEJORA
region. The power of the full diversity of tourism resources and leadership at
the village level that best enable the tourism industry especially rural tourism
activities developed extensively. However, the constraints which exist today,
such as competition from neighboring countries that offer more attractive
packages and low to be considered in the planning and implementation of
rural tourism program KEJORA area.
4.1.4

LOW INCOME EARNING FOR RURAL PEOPLE
KEJORA also tried directly and indirectly to enable the income of the

rural population can be improved mainly in line with the government's
desire for a living in towns and villages in the region KEJORA. Hence, the
implementation of an integrated plan to increase revenue is expected to
increase the income of rural residents, especially residents of the traditional
villages and towns of this new KEJORA region.

4.1.5

LACK OF INFRASTRUCTURE DEVELOPMENT
Infrastructure development has been developed by KEJORA

especially in

new towns and villages have been making traditional

Southeast Johor region thrive. With the completion and operation of Pasir
Gudang Senai - Desaru in mid-2011 will certainly put pressure on the City
Bidder especially with respect to the physical, economic and social. SenaiDesaru Pasir Gudang, Johor Bahru, which shortens the trip to Desaru will
create new potential for heavy industrial activity and the high-tech and tourism
in the city and surrounding bidder.
To enable the implementation and provision of major infrastructure
such as the construction of highways, bridges, airports and transit centers
mild inland port, the government should provide special provisions for him. In
addition, cooperation between the State Government, Federal Government
and non-government companies (GLCs) also is one of the methods that can
be implemented based on the projects that will be developed.

5

Several large infrastructure needs to be developed in the area
KEJORA as a catalyst to more rapid development of the tourism sector and
agriculture will provide jobs with higher wages and thus succeeded in
increasing income of the population in line with the government's objective.
4.1.6

HUMAN CAPITAL DEVELOPMENT
Human Capital Development is the main agenda in line with the thrust

of the First Master Plan for Rural Development to strengthen the
empowerment of rural communities. To realize this objective, the integrated
human capital development program should be implemented with careful
attention to the target groups including the elderly, youth, women and
members KEJORA.
KEJORA committed to developing the human capital of the
approximately 300,000 people in programs organized. KEJORA received
strong support from the ministry to achieve this objective through the
implementation of programs and activities that involve all segments of society.
KEJORA also made a joint collaboration with agencies / departments such as
MARA, the Social Welfare Department, the Local Authority and the Islamic
Council in order to ensure that all programs and activities can be carried out
effectively and optimize resource utilization.
City Bidder as the goal of making education hub in the region
KEJORA an agenda that is consistent with the strategy of human capital
development and training programs in collaboration between institutions in
the vicinity City Bidder Mara Professional College, INSTEDT, community
college and institute, KEJORA also actively implementing efforts to attract
inward educational institutions to KEJORA region by providing site
development, facilities and infrastructure.
However, the limited budget, the limit to create a strategic partnership
between government departments, and agencies to factor limiting the
effectiveness of the program. In addition, rural communities must change their
bass so that all programs and activities that are beneficial and thus change
their lives.
In line with the government's directive that the governance of public
services should be enhanced, the emphasis shall be given for continuing
efforts towards the development of human capital. To realize these goals, a
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paradigm shift is required to produce a credible civil servants armed with
knowledge in various fields including science and technology.
In addition, KEJORA has the advantage on the basis of the services
covered but have the freedom in human resource management. Efforts
should be enhanced through planning and implementation of human capital
development for all members KEJORA more thorough and comprehensive.

4.2 KEDA
4.2.1

STRATEGIES/ MAJOR PROGRAMMES OF POVERTY REDUCTION

1) Rural Economic Funding Scheme
2) Entrepreneur Training and Guidance
3) Income Increment Programs
4) Housing Assistance Programs
5) Balance Supplement Food Programs
6) Prosperous Education Excellence Programs
7) Institutional Development Programs
8) Social Amenities

4.2.2

The major strategies to develop the rural sectors namely:

1. Agrarian reform
It was viewed as a means of bringing structural and institutional changes in
the agricultural sector, and fostering the greater equity in agricultural and rural
development.
The reform determines the size distribution of holdings and alters the
institutional structure governing man’s relationship with land.
The major agrarian reforms implemented in Malaysia were land
development and settlement and in situ development.

7

The primary objective of the settlement strategy is to provide land to
landless or marginal farmers, and at the same time to provide more gainful
employment and better incomes.
Plans, designs, coordinates and implements the schemes which
involve land clearing, provision of infrastructure, services and housing,
selecting the settlers and assists the settlers in the production, marketing and
processing of the crop
In situ development
In situ development involves replanting, rehabilitating and consolidating
activities on existing agricultural areas that are faced with problems of poverty
and low productivity.

2.

Integrated rural development
The ultimate objective of the comprehensive IRD strategy is to
transform rural society through collective self reliance.
The strategy of area development was justified on the basis that
focusing IRD projects on selected or targeted areas would produce quicker
and greater impact compared to an unfocused and diluted approach.
By concentrating on selected areas or localities, it will facilitate
intensive planning and implementation that will help identify and solve the
rural problems, integrate basic components of IRD and link micro-level village
planning with macro target-setting and planning.
This strategy normally includes natural resources or land development
programme, basic economic infrastructure and social amenities, the provision
of agriculture support services like credit, marketing, research, extension,
farm inputs and the development of the non-agriculture rural component like
rural industries, rural public works and community development projects

3.

Rural industrialisation
This was seen to comprise four integral components; namely,
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3.1

Primary processing of agricultural raw materials for export, for

example,

rubber milling, palm oil milling and cocoa bean production;
3.2
Traditional activities which may loosely be described as handicrafts
with
3.3

such

products

as

batik,

basketry,

pottery,

silverware

and

woodcarvings, produced by small, home-based enterprise;
Small-scale production of consumer goods for local markets, with products

such as bread and cakes, fish crackers, clothing, furniture, brick and cement blocks;
and
3.4

Automotive and electrical repairs, often involving only a working

proprietor

using informal premises

4.

Rural growth centres.
4.1

The rural growth centres (RGCs) involve the clustering of

traditional villages, encompassing the main village or a cluster of
villages to function as a single conomic unit. The RGC shall be
provided with the necessary facilities and

infrastructure such as

school, shops, markets, clinics, prayer halls, civic

centres,

water,

electricity and other amenities.
4.2
4.2.1
4.2.2
4.2.3
4.2.4

The objectives of the RGCs are as follows:
To eradicate poverty;
To ensure a balanced development between urban and rural
To improve the equality of life of the rural population; and
To establish and strengthen the rural urban linkages between

areas;
the

rural

hinterland and the neighbouring towns;

4.3

KESEDAR
4.3.1

In Ninth Malaysia Plan, KESEDAR have 5 policy to ensure all the
development activities KESEDAR are parallel with national and
Ministry of Rural and Regional Development Policy.
The policies are drawn as follows:

i.

Develop human capital based on concept human capital development
wider and comprehensive included all aspect which is high in ethics
and morals, reliable, knowledge and skills and good values.

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ii.

Increase productivity through agriculture commercial activities, small
and medium scale industries, tourism, business and trade by explore
new and nature source.

iii.

Increase participation and involvement private company, subsidiaries
and non-governmental agencies in local development.

iv.

Expand info-structure coverage especially at Gerakan Daya Wawasan
(GDW) in South Kelantan and civilize information technology and
knowledge at least 10% per year.

v.

Increase joint venture with research agencies and the other region
agencies under Ministry of Rural and Regional Development to
achieve mutually benefit in develop people in rural area.

4.3.2

In 10th Malaysia Plan, there are 5 thrust have related to KESEDAR
which is as follows:

i.

Creating the environment for unleashing economic growth

ii.

Transforming government to transform Malaysia

iii.

Moving towards inclusive socio-economic development

iv.

Developing and retaining a First-World talent base

v.

Building an environment that enhances quality of life

4.3.3

Based on 10th Malaysia Plan, the several strategies are:

i.

Prepare the whole of financial help and supporting programme for
micro business.

ii.

link skill workers from rural area with employer within related cluster
and near city

iii.

Increase the income continuously in agriculture sector by contract
farming concept.

10

iv.

prepare a opportunity for rural entrepreneurship capable have their
own business

v.

Increase productivity and outcome through unification land

vi.

Increase a productivity of human capital in rural agriculture and agrobased industries.

vii.

Expand an Agropolitan concept to agriculture and agro-based
industries wider

4.3.4

Based on Government Transformation Programme (GTP), there are two
strategies related to KESEDAR programme. The two strategies are:

i.

Increase rural infrastructure such as roads, clean water, electric and also
maintenance.

ii.

Develop 21st Village :
a. Agriculture – develop big scale and modern agriculture
b. Tourism – increase eco-tourism and agro-tourism village
c. Estate – increase production of palm oil, rubber or sago
d. Rural industries –increase production of traditional food and craft

4.3.5

Based on Economic Transformation Programme (ETP), KESEDAR will focus
on sub-sector that has a high potential which is swift nest, herbs product,
stingless bees farms and also tropical fruit.

1. PROGRAMME
KESEDAR focus on two main programme which is land development and regional
development.

The project which implement in ninth Malaysia plan are :

11

i.

Facilities
Providing basic facilities and social amenities such projects are not listed
and are applied on an ad hoc basis by the target group in order to meet
their immediate needs. Examples of such projects
a. Fences and endowments grave
b. Equipment
playground

mosque

c. Emergency

ii.

/

mosque

aid

/

madrasah

natural

and

disaster

The Land Development Plan Programme
Is the development of agricultural land (rubber and oil palm) that is
integrated with a settlement aimed to alleviate poverty
a. Involving 2,228 settlers.
b. A total of 11 units land development plan have been developed
(nine have settlers)
c. The area planted 18.340 hectares (9,654.92 acres = rubber, palm
= 8,685.56 hectares)
d. Average yields in year 2006 = 16.5
The average yield of rubber year 2006 = 456 kg / ha

mt

/

ha

e. Replanting

f.



There are areas the settlers = 9,791 acres



There are no settlers Area = 8,548 hectares

The others project are:


Roads farms (23 projects, 50 km)



Water supply (1 project)



Village road (46 projects, 86 km)



Public utilities (56 projects)



Site preparation for settlers (300 lots)



Measure farm lots (3,033 lots)

12

iii.

Rural Roads
Provide all-season roads in the villages / settlements in South Kelantan to
improve the quality of life of rural residents. Almost 135 road was
implemented includes built, upgraded and refurbished involved about 211
km roads and also 22 bridge.

iv.

Traditional Village Development
Provide basic amenities in the villages traditional South Kelantan to
improve the quality of life of rural residents such as alternative water
supply (36 of project), amenities (73 of project) and also herbs farm (200
acres)

v.

City and Central Growth of Development
Providing infrastructure and public facilities as well as provide business
premises in growth centers such as roads,

vi.

Poverty Alleviation
KESEDAR are responsible for implementing projects for poor families with
the aim of removing them from the poorest people. The projects
undertaken by KESEDAR for the hardcore poor are ;

vii.



The human mind development (80 series of courses)



The increase in revenue (100 projects)



Skills training and career (10 courses)



Program of educational excellence (34 series of courses)

Land Recovery Plan Development
Prepared facilities in Land Rehabilitation Scheme for the purpose of
improving the economy and quality of life of the settlers.



Rural Roads (56 of project, 85 km)
13

viii.



Roads estate (25 of project, 50 km)



Amenities sosial (42of project)



Fruit Farms (80 hectars )

Social and Institution of Development
Prepare projects lead to human development which is parenting
development (490 series that give benefit to 577,840 people), adult
education (2,815 series and 843,475 people get the benefit), Institution of
leadership education (1,733 series of 1,101,968 people), youth generation
development (1,655 series give the benefit around 721,058 people,

ix.

Development of Information Technology
Provides equipment and ICT education such as development systems
and
facilities
(100
events)
ICT education (60 events)

x.

Economy and industry of Development
The program aims to increase the number of rural entrepreneurs as well
as improving the existing level of entrepreneurship. The projects
implemented are for economic development and entrepreneurship
through which is equipment, capital loans, promotion and also
entrepreneurship courses, rural tourism (etnobotani garden and pergau
lake) and also 21first century village.

The programme that KESEDAR has and will implement till the 2030 are:
I.

Human Capital Development

a) Mind development
b) Human Capital development
c) Training and skill development
d) Institutional development
e) Poverty Alleviation
14

II.

8.0

Development of housing and environment

a)

urban development and growth center

b)

village development

c)

development of infrastructure

d)

economic development

e)

agricultural development

f)

development of rural industries

g)

tourism development

h)

privatization

i)

development subsidiary

CONCLUSION
In conclusion, the rapid development of sectors such as industry, tourism and
agriculture in the region will KEJORA can create demand for housing / settlements.
The demand for housing is expected to increase in Bandar bidder and southeast. In
meeting these requirements KEJORA need to design and develop new settlement
areas.
To achieve that goal, KEJORA need to increase the capacity of self through
engagement in commercial activities can provide benefits through the establishment
of subsidiaries. In addition, the capacity of human resources in KEJORA also needs
to be improved through training to members and also improvements to systems and
procedures.

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