Chairperson,
Mr. President,
Distinguished Governors and delegates,
Ladies and Gentlemen

2015 stands out as a magical date when all of the world's poor would have a better deal as the Millennium Development Goals are achieved across the globe.  Realistic aspirations or just a chimera?.  Here we are just 9 years from our target date, and poverty levels are rising and the MDGs seem almost unattainable.  Can this cycle of poverty ever be broken?. Or can we in the international community think up effective and innovative ways to eradicate this scourge.

That's why the theme for this year's IFAD's Governing Council  “Innovation Challenges for the Rural Poor” is both timely and relevant.  There is a real need to reinvent ways to tackle rural poverty if hope is to be restored to the poor and disenfranchised of the world. 

In Malaysia we have succeeded in reducing poverty from 49.3% in 1970 to 5.5% in 2000.  This was done by integrating poverty reduction and income redistribution as an integral part of the over arching economic development strategy of the government.   The objectives of the various development policies were pursued through the improvement of services such as housing, health and public utilities to benefit quality of life of the poor, the promotion and adoption of capital efficient modern agricultural techniques alongside marketing, credit, financial and technical assistance designed to improve agricultural productivity and thus the income of the poor.  Efforts were made at institution and capacity building and even relocating industries to the rural areas. 

Today, the government is looking at more innovative ways by  expending more resources to tap into biotechnology, using indigenous knowledge and developing a niche markets for halal products.  Priority is also given to food production, its commercialization including processing, packaging and marketing at source.  Fishing activities are to be diversified and modernized through upgrading research and training, fish farming, fish breeding, deep sea fishing and ornamental fish and by setting up cooperatives.

National governments working with International institutions such as IFAD can form useful partnerships that go a long way to reduce rural poverty and to make the achievement of the MDG's a realistic goal.

Mr. Chairman,

My delegation is pleased to note that the IFAD management has responded positively to the findings and recommendations of the IEE, which has resulted in an IFAD Action Plan for 2006-2007.  It is hoped that the Strategic Plan for 2007-2010 could be also endorsed.

With regard to the Performance Based Allocation System, we feel that it would more prudent not to make any changes in the current formula at this juncture as it is too premature to make a formal assessment of its effectiveness. Changes to the PBAS could create divisiveness and conflict within the grouping and give rise to the impression that countries are competing for resources.

With regard to the voting rights in IFAD, my delegation would like to see a more fair and just voting system that would not unfairly marginalise poor nations simply because they are poor from participating fully in IFAD deliberations and elections.   We look forward to the outcome of the Working Group's deliberations on this issue and for the Working Group to consider setting up a standing committee to look into all aspects of governance to ensure greater transparency within the organization.

My delegation would also like to support the proposal of List B and C countries that the enhanced Associate officers Programme of IFAD be financed from the regular budget of IFAD as part of its overall programme, and not to set up a multilateral fund financed by voluntary contributions.

Mr. Chairman,

It is our hope that IFAD can continue its proactive, focused and targeted programs to help reduce rural poverty and to keep the MDG's as an attainable goal.