ECONOMY

Central market at Kota Bharu

ECONOMY

 

Agriculture forms the backbone of the Kelantan economy. In 1993, 22% of the State´s GDP came from this sector. Total land area under agricultural cultivation is around 25% of the total land area in the State, with rubber and paddy taking up about 65% of this total. Paddy was cultivated on 80,000 hectares, and production was estimated at 286,000 metric tonnes in 1993. Rubber took up 156,000 hectares, of which 57% was cultivated by smallholders with the rest being cultivated in big estates. Tobacco is beginning to make up a bigger portion of the State´s GDP, and is becoming an ever more important cash crop. The State produces more than 90% of Malaysia´s total production of this crop.

Other important economic sectors in Kelantan include mining. Kelantan has viable deposits of manganese, gold, copper, barite, lead and zinc, in addition to deposits of granite, sand and limestone. Cottage industries such as the manufacture of keropok (prawn crackers), dried fish, and budu, a fish paste, are continually being promoted by the State Government. In addition to this, Kelantan is also encouraging the development of its´ handicrafts industry.

With some of the best reserves of timber in the country, Kelantan has good potential in this sector for the future. A star in the making is the manufacturing sector which, in 1993, contributed 12% of the State´s GDP. Tourism, on the other hand, is one area of the State´s economy which has not been exploited to anywhere near its´ full potential. Besides the natural beauty it has to offer visitors, Kelantan truly has a rich cultural tradition which can be utilised in the promotion of tourism.