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FINAL 

THE REPORT OF THE 22ND MEETING OF THE NATIONAL FOCAL POINT


FOR THE ASEAN COCOA CLUB (ACC) ON ASEAN COOPERATION
AND JOINT APPROACHES IN AGRICULTURE AND FOREST PRODUCTS
PROMOTION SCHEME
16–17 July 2019
Pulse Grande Hotel, Putrajaya, Malaysia

INTRODUCTION

1. The 22nd Meeting of the National Focal Point for the ASEAN Cocoa Club (ACC) on
ASEAN Cooperation and Joint Approaches in Agriculture and Forest Products Promotion
Scheme was held on 16-17 July 2019 at Pulse Grande Hotel, Putrajaya, Malaysia.

2. The Meeting was attended by 29 delegates and observers from the government and private
sectors of six ASEAN Member States (AMS) namely Indonesia, Malaysia, Myanmar,
Philippines, Thailand and Viet Nam. The list of delegates is in Annex 1.

OPENING CEREMONY

Welcoming Remarks from the Chairman of the 22nd ASEAN Cocoa Club (ACC) Meeting

3. The Chairman of the 22nd ACC Meeting, Dr. Ramle Hj. Kasin, the Deputy Director
General (Operation) of the Malaysian Cocoa Board (MCB) welcomed and thanked all
delegates from Indonesia, Malaysia, Myanmar, Philippines, Thailand and Viet Nam for
attending the 22nd ACC Meeting. He also congratulated the ACC Secretariat as well as the
Local Organizing Committee for their hard work and support in ensuring the preparation of
the Meeting successfully undertaken.

4. He also emphasized on the issues and challenges faced by the cocoa industry particularly
on the significant gap between supply and demand, price volatility, pest and diseases
problems, stringent quarantine and food safety requirements. Therefore, he urged the AMS
to strengthen the collaboration between the government and private sectors in the true spirit
of ASEAN in addressing issues confronting the cocoa industries. It is important to have

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continuous cooperation and networking from all the AMS to further strengthened and
sustained the cocoa industry in the global market.

The full text of his opening remarks is in Annex 2.

Opening Speech from the Secretary General, Ministry of Primary Industries, Malaysia

5. The Meeting was officially opened by the Honourable Dato’ Dr. Tan Yew Chong Secretary
General of Ministry of Primary Industries Malaysia. He welcomed all the delegates from
Association of Southeast Asian Nations (ASEAN) member countries as well as the
representatives from the ASEAN cocoa industry to Malaysia.

6. In his speech, he highlighted that the ASEAN countries are established as important world
suppliers of commodities including cocoa beans and ranked as the 4th biggest producers of
cocoa beans in the world and the largest in the Asia and Oceania region, with an estimated
cocoa production of 237,000 tonnes accounted for 5.0% of the world cocoa production.
The cocoa grindings is expanding to estimated 852,000 tonnes or 17.9% of the world cocoa
grinding in 2018/19. Collectively, ASEAN countries are the largest cocoa processors in
Asia and Oceania region contributing about 76.6% of the total cocoa grindings in this
region.

7. He also highlighted that Asian market for chocolate confectionery has grown at an annual
rate of 5%. However, the development of cocoa beans production in this region continue
to drop for the past 5 years due to challenges faced by the industry: imbalance of growth
between the upstream and downstream industries, lack of interest on cocoa planting, land
use competition with other lucrative crops, high production costs, pest and diseases threats
and limited research and development programmes. Therefore, there should be a concerted
strategy by all AMS to address this issue to ensure the continuous development and to
safeguard the future of cocoa sector as a dynamic and competitive sector.

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8. He emphasized that ACC should give more focus to ensure long term sustainability and
better remunerative income to the growers with the appropriate policies and agreement.
Thus, close collaboration between governments, industry players and local communities is
vital to address the negative impacts and creating an effective implementation of the
sustainable cocoa development plan of action.

The full text of his Opening Speech is in Annex 3.

AGENDA ITEM 1: OPENING REMARKS

9. The Chairman of the 22nd ACC Meeting, Dr. Ramle Hj. Kasin, the Deputy Director
General (Operation) of MCB conveyed his appreciation and welcomed the delegates of the
AMS to the 22nd ACC Meeting.

10. He emphasized on the importance of the ACC as the platform that ASEAN countries could
work together on achieving the common goals to strengthen and enhance the Intra-ASEAN
trade on cocoa and cocoa products to be in line with the objectives to strengthen the
bargaining position of ASEAN on matters affecting agriculture and forest products trade in
the world market; expanding agriculture and forest products export through product
diversification of downstream processing and higher value-added activity as well as
continue upgrading the quality of ASEAN agriculture and forest products.

11. He highlighted that the ACC Meeting will discuss on the status and progress of the cocoa
commodity and outline the Strategic Plan of Action (SPA) for the period of 2016-2020,
which include the ASEAN position in the international forum regarding issue on cocoa,
establishing strategic plan, strategic partnership and collaboration with the private sector in
promoting food safety, investment opportunity, promotion of agriculture products, market
access and to encourage cooperation in research and transfer of technology.

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AGENDA ITEM 2: ELECTION OF CHAIRMAN AND VICE–CHAIRMAN

12. Dr. Ramle Hj. Kasin, the Deputy Director General (Operation) of MCB was unanimously
elected as the Chairman of the 22nd ACC Meeting and Dr. Divina M. Amalin, consultant of
the Cocoa Foundation of the Philippines and Professor of the De La Salle University
Manila as the Vice–Chairperson.

AGENDA ITEM 3: ADOPTION OF AGENDA

13. The Meeting adopted the Agenda of the 22nd ACC Meeting as in Annex 4.

AGENDA ITEM 4: BUSINESS ARRANGEMENTS

14. The Meeting was held in plenary.

AGENDA ITEM 5: COUNTRY PRESENTATION ON THE LATEST DEVELOPMENT


OF THE COCOA INDUSTRY IN MALAYSIA

15. Dr. Ramle Hj. Kasin, the Deputy Director General (Operation) of MCB presented the latest
development of the cocoa industry in Malaysia covering the followings:–
i. Scenario of the Cocoa Industry in Malaysia
ii. Progress and Development of the Cocoa Industry in Malaysia

His slide presentation appears in Annex 5.

16. He highlighted on the issues of declining trend in the cocoa production and low yield of the
cocoa farmers and to overcome these issues, the MCB has actively implemented strategic plan
and activities as follows:
i. Cocoa smallholders development program
ii. Cocoa smallholders extension program
iii. Enhancing productivity and introduction of new planting area
iv. Clone manipulation-widely implemented throughout cocoa cultivation in Malaysia

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v. Integrated pest and disease control approach to mitigate and to control pest and
disease
vi. Rehabilitation of cocoa tree
vii. Establishment of cocoa processing center

17. Dr. Divina M. Amalin commented on the similarity of the issues and challenges faced by
the cocoa farmers in the ASEAN countries and suggested that the approach of the
extension program to be shared with other AMS in particular Myanmar and Thailand. She
highlighted on the issues on the irrational and overuse of pesticide in the cocoa farms. She
suggested that the Technical Working Group on Good Agriculture Practices (TWGGAP) to
produce friendly protocol with modules to the farmers.

18. Thailand informed the Meeting that due to the low productivity in the cocoa farm, they are
currently emphasized on the ‘reborn’ of cocoa. Thailand requested that Malaysia could
share the training programs and expertise to focus on the training programs to the cocoa
farmers on good agricultural practices.

AGENDA ITEM 6: MATTERS ARISING FROM THE 25TH MEETING OF THE JOINT
COMMITTEE ON ASEAN COOPERATION AND JOINT APPROACHES IN
AGRICULTURE AND FOREST PRODUCTS PROMOTION SCHEME, 10-12 JULY
2018 IN LOMBOK, INDONESIA

19. Malaysia presented the report of the 25th Meeting of the Joint Committee on ASEAN
Cooperation in Agriculture and Forest Products Promotion Scheme (JCM) held on 10-12
July 2018 in Lombok as in Annex 6.

20. Malaysia reported the status of the follow up action should be undertaken by the AMS as
follows:

i. The AMS is requested to update the Strategic Plan of Action (SPA) 2015-2019 and
presented in the next 26th Joint Committee Meeting.

ii. The Meeting noted that the ASEAN Good Agricultural Practices (GAP) for
Production of Good Quality Cacao Beans in the ASEAN Region will be submitted to
the 40th AMAF Meeting tentatively schedule in October 2018 at Viet Nam for

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endorsement.

AGENDA ITEM 7: MATTERS ARISING FROM THE PREPSOM–40TH AMAF, 8-9


OCTOBER 2018; PREPSOM–18TH AMAF PLUS THREE, 10 OKTOBER 2018; 40TH
AMAF, 11 OCTOBER 2018 AND 18TH AMAF PLUS THREE, 12 OCTOBER 2018 IN
HA NOI, VIET NAM

21. Malaysia presented the report of these Meetings as follows:


i. The ASEAN Good Agricultural Practices (GAP) for Production of Good Quality
Cacao Beans in the ASEAN Region was endorsed in the 40th AMAF Meeting held in
Ha Noi, Viet Nam on 11 October 2018

STRATEGIC THRUST 1: JOINT PRODUCT PROMOTION IN INTERNATIONAL


MARKETS

AGENDA ITEM 8: JOINT EFFORTS TO OVERCOME DISCRIMINATORY TARIFFS


AND NON-TARIFF BARRIERS AND UNFAIR TRADE PRACTICES IMPOSED BY
THE IMPORTING COUNTRIES

8.1 ENHANCE INTRA– AND EXTRA–ASEAN TRADE AND LONG–TERM


COMPETITIVENESS OF ASEAN’S FOOD, AGRICULTURE AND FORESTRY
PRODUCTS/COMMODITIES

8.1.1 Tariff and Non–Tariff Barriers on Cocoa Beans and Cocoa Products

i. ASEAN Trade in Goods Agreement (ATIGA)

22. Indonesia updated the Meeting on the progress of ATIGA. The ATIGA was entered into
force on May 2010 involving all 10 AMS to promote intra-ASEAN trade through the
elimination of import tariffs. The elimination process is now completed.

23. As of 2018, ten (10) AMS namely Brunei, Cambodia, Indonesia, Lao PDR, Malaysia,
Myanmar, Philippines, Singapore, Thailand and Viet Nam had reduced their import tariffs
on cocoa and cocoa products to 0%.

24. The latest matrix ATIGA reduction schedule for 2018 on cocoa and cocoa products for
each of the AMS appears in Annex 7.

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8.1.1 ASEAN Free Trade Area (FTA) between ASEAN and other countries

25. On Free Trade Agreement (FTA) between ASEAN and other countries, the Framework
Agreement on Comprehensive Economic Cooperation for the following countries had been
concluded as follows:

i. ASEAN – China FTA

The FTA ASEAN – China was signed by the ASEAN Leaders at the ASEAN –
China Summit on 4th November 2002 in Phnom Penh, Cambodia and entered into
force on 1st July 2003.

ii. ASEAN – Korea FTA

The FTA ASEAN – Korea was signed by the ASEAN Leaders at the ASEAN –
Korea Summit on 13th December 2005 in Kuala Lumpur, Malaysia and came into
force on 1st July 2006.

iii. ASEAN – Japan FTA

The FTA ASEAN - Japan was signed when the ASEAN Leaders and Japan
completed the process of signing the agreement by circulation on 14th April 2008
and came into force on 1st April 2009.

iv. ASEAN – India FTA

The FTA ASEAN – India was signed by the ASEAN Leaders at the ASEAN –
India Summit on 13th August 2009 in Bangkok, Thailand and came into force on
1st January 2010.

v. ASEAN – Australia/New Zealand FTA

The FTA ASEAN – Australia/New Zealand was signed by the ASEAN Leaders at
the ASEAN – Australia/New Zealand Summit on 27th February 2009 in Cha-am,
Thailand and came into force on 1st January 2010.

The ASEAN FTA between ASEAN and other countries appears as Annex 8.

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8.1.3 Most Favoured Nation (MFN) Tariffs

26. There is no update report on the MFN tariff rates from the AMS.

27. Indonesia highlighted on the discriminatory tariff enforced by the European Union (EU)
on cocoa products. The EU imposed a 10% tariff for the ASEAN region, while for Cote
d’Ivoire and Ghana, they have enjoyed a 0% import duties. Therefore, Indonesia
proposed that there should be an ASEAN position against the discriminatory application
from EU.

28. Malaysia also highlighted that currently the government of India official are not
accepting the ASEAN-India Agreement on cocoa products exported to India due to low
production of cocoa beans in Malaysia. Malaysia suggested ASEAN to change General
Rules from Regional Value Contains (RVC) to Change in Tariff Heading (CTH) for
entitlement of preferential tariff.

29. Malaysia informed the Meeting on the difficulties to meet the RVC Rules because
Malaysia does not have enough cocoa beans for entitlement of preferential tariff. The
option is under negotiation of Regional Comprehensive Economic Partnership (RCEP).
The ASEAN prefer to use CTH Rule for General Rule rather than RVC Rule. If RCEP
concluded, Malaysian cocoa products would get better market access to India.

8.1.4 Non–Tariff Barriers (NTBs)

30. There is no update report on the NTBs from the AMS.

AGENDA ITEM 9: JOINT PROMOTION OF THE PRODUCTS THROUGH


PARTICIPATION IN PROMOTIONAL ACTIVITIES

9.1 Promote Awareness Programs and Campaign


9.2 Other Promotion Campaign

31. The AMS updated the Meeting on the latest programs on promotion activities conducted
in their countries as follows:

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i. Indonesia
• 7th Indonesia Cocoa Conference will be held on 14-15 November 2019 in Bali,
organized by Indonesian Cocoa Board and Indonesian Cocoa Association
(ASKINDO).
• Indonesian Cocoa Day will be organized in October 2019 in Sulawesi
• 5th World Cocoa Conference (WCC) will be held in September 2020 in Bali

ii. Malaysia
• Mini exhibition of cocoa and cocoa product organized in concurrent with the 22nd
ACC Meeting.

iii. Myanmar
• Cocoa Planting program through the distribution of cocoa seedlings for new
cocoa planting area

iv. Thailand
• Collaboration with private sector to promote awareness program on cocoa
planting, establishment of contract farming which produce bean to bar and
promoting cocoa agro-tourism.

v. Philippines
• Establishment of a regional center for cocoa in Cagayan.
• Kakao Konek Conference will be held on 17-18 October 2019 in Davao and is
open for international participation. Meanwhile, for domestic promotion, Training
Workshop on the value added in cocoa will be scheduled in September 2019. The
invitation will be distributed to the AMS.

vi. Viet Nam


• A public-private partnership program to promote cocoa in November 2019.

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STRATEGIC THRUST 2: JOINT ASEAN POSITION AT INTERNATIONAL FOR A

AGENDA ITEM 10: CONSULTATION AND COOPERATION TO FORMULATE A


JOINT ASEAN POSITION AT INTERNATIONAL FORA ON ISSUES RELATING TO
THE PRODUCTS

10.1 Public-Private Partnership


10.1.1 Research and Development (R&D)

32. The Meeting was informed that there was no update on this matter.

10.1.2 Project Development

i. Corporate Social Responsibility (CSR)


ii. Sustainability Project

33. The Meeting took note on the report of the Cocoa Market Outlook by the Cocoa
Association of Asia (CAA) presented by the Chairman of the Cocoa Manufacturers
Group (CMG).

34. He highlighted that the global cocoa markets have experienced strong growth and good
overall economics in the last few years. For the crop year ending in September 2019,
Cote d’Ivoire is expected to record another record year with output topping over 2.1
million metric tons. Ghana remains the second largest producer with their 2018/19 crop
year expected to come in just around 850,000 mt. The outlook for the Indonesian crop is
approximately 215,000 mt as farmers continue to struggle with low yields and competing
crops offering better economic alternatives.

35. On the demand side, global cocoa markets have been very strong due to favourable
pricing environment, which helped to push the cocoa and chocolate consumer products
companies to re-invest in marketing and sales activities. He also informed that the
demand for cocoa ingredients in Asia continues to outpace the growth in the rest of the
world. The Asia-Pacific region imports (approximately 700,000 mt) more than double the
amount of beans that it produces locally (approximately 300,000 mt crop size). Factories
in the region therefore are relying increasing on cocoa beans from West Africa and South
America to meet the regional processing demand.

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36. Globally, the price for good quality cocoa beans has been on the rise the last several
months as factories around the world are fighting for the same pool of beans. The
secondary origins have an opportunity to benefit from this price increase if they can
continue to improve on quality and maintain or increase their outputs.

10.2 Technical Working Group on Good Agriculture Practices (TWGGAP)

37. Dr. Divina M. Amalin the Chairperson of the ACC TWGGAP presented the report of the
8th Meeting of the ACC TWGGAP.

38. Dr. Divina M. Amalin, Chairperson of the 8th ACC TWGGAP and Professor at the De La
Salle University, Manila, Philippines was designated as the Chairperson of the 8th
Meeting of ACC TWGGAP. Mr. Sigit Wahyudi from the Ministry of Agriculture,
Indonesia was elected as the Vice-Chairperson by all delegates of ACC TWGGAP.

39. She informed the Meeting that the 8th ACC TWGGAP Meeting was held on 15 July 2019
at Pulse Grande Hotel, Putrajaya, Malaysia. The Meeting was attended by 14 participants
from 5 AMS, namely Indonesia, Malaysia, Myanmar, Philippines and Thailand.

40. The Meeting was informed that Indonesia, Malaysia, Myanmar, Philippines and Thailand
have reported the current activities on GAP for cocoa in their respective countries as
follows:

I. Philippines

i. Philippines presented the Bio-Based Technologies (BBTs) for Managing Cacao Pests
in the Philippines.

ii. Philippines shared the important accomplishments of the Cacao Pest Management
Program funded by the Department of Science and Technology. The following are the
updates of the accomplishments of the different projects: The full presentation is
shown in Annex 9.

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a. Updates on the Sex Pheromone Trapping System for the Control of Cacao Pod
Borer (CPB), Conopomorpha cramerella, in the Philippines:

• The CPB pheromone lure is able to attract male CPB in the Philippines.
Confirming identification as C. cramerella.

• Counts of trapped CPB have been significantly higher in traps set at least 0.5m
above the canopy.

• CPB trap catches exhibit seasonal abundance. Sex pheromone traps can be
used for monitoring and control of CPB.

b. Updates on the Exploration, Identification, Mass Rearing, and Field Release of the
Biological Control Agents Against CPB and Cacao Mirid Bug (CMB), Helopeltis
bakeri.

• Two important predators were identified: red weaver ant, Oecophylla


smaragdina; and lynx spider, Oxyopes javanus.

• Rearing of the spider predator, O. javanus, is on-going using artificial diet.


This is to develop a rearing system to produce enough spider predator for
augmentation in the field against CMB.

c. Updates on the Biological Control of Fungal Diseases of Cacao: Vascular Streak


Dieback (VSD) and Black Pod Rot (BPR).

• Out of the 37 microbial isolates 3 were antagonistic to BPR and VSD causing-
pathogens and considered as potential microbial control agents (MCAs) for
BPR and VSD.

• These microbial isolates were tried in established cacao trees with VSD
through trunk injection and the result is very promising.

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d. Updates on the Development of Nano-biosensor Diagnostic Kit for BPR and VSD

• Prototype of the nano-biosensor system for VSD and BPR is already developed
and ready for pilot testing.

e. Updates on the Particle Film Technology against Pests of Cacao attacking the
Pods

• Choice and No-choice tests showed that local clay zeolite showed significant
deterrent effect on the feeding of CMB.
• Combination of zeolite and Metarhizium anisopliae showed potential in the
control of CMB.

II. Malaysia

i. Malaysia presented three updates as follows:

a. Development of Compound Fertilizer for Cocoa presented by Mr. Mohamed


Helmi b. Shari, Malaysian Cocoa Board Agronomist. The full presentation is
shown in Annex 9.

• Mr. Mohamed Helmi b. Shari shared information regarding Malaysia


experience in developing the compound fertilizer (MCB F1 HYFer) for
increasing cacao yield.

• He also proposed the possibility of doing a joint project among AMS to


develop a compound fertilizer that is suitable for respective region.

b. Adoption of ‘4Ps’ Concept in Cocoa Field Management to Increase Production


and Productivity presented by Dr. Rozita Osman, Malaysian Cocoa Board
Agronomist and Plant Physiologist. The full presentation is shown in Annex 9.

• Dr. Rozita Osman reported that high yielding cacao can be achieved fully
through good agricultural practices for cacao management.

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• Proper sanitation, pruning and harvesting all ripe pods are very important
practices to increase productivity by reducing pests and diseases incidences.

• She also concluded that sanitation alone is the most contributing factor to
ensure high yield.

c. Adoption of good agriculture practices in managing insect pests and beneficial


insects of cacao presented by Ms. Saripah Bakar, Malaysian Cocoa Board
Entomologist. The full presentation is shown in Annex 9.

• She reported that, the current practice in managing CPB must include a
complete package of management practices such as weekly pod harvesting,
removal and burial of a diseased and CPB affected pods, regular pruning,
biological and chemical control if necessary.

• She also reported that cacao black ants is a potential biological control agent
against CPB but optimization of its use should be addressed such as,
availability of food source, conservation and provision of appropriate habitat.

III. Myanmar

i. Mr. Tun Tun Htwe, Director of Perennial Crop Division, Department of Agriculture
presented on the Current Status for Cocoa Production in Myanmar. The full
presentation is shown in Annex 9.

a. Mr. Tun Tun Htwe mentioned that cacao cultivation in Myanmar is still in its
infancy stage.

b. He listed the following needs to popularize cacao farming in Myanmar:


• Training and education program
• Research and development
• Provision of planting material
• Market information and access
• Specification and standardization

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• International cooperation

IV. Indonesia

i. Mr. Azis Hidayat presented the updates on cacao farming in Indonesia. The full
presentation is shown in Annex 9. He mentioned that cacao value adding is given
high priority in Indonesia. He also mentioned that cacao is now considered as major
component in Agro Tourism. Some of the Agro Tourism being established in
Indonesia are as follows:

a. Coco Village (Kampung Coklat) at Blitar-East Java and Gunung Kidul,


Yogyakarta
b. SEATCo (Stiper Agro Edu- Tourism for Cocoa) at Unggaran, Central Java
Institute of Agriculture STIPER, Yogyakarta
c. Integration Cacao-Goat for Zero Waste Management (Organic) in Bali

This Agro Tourism aims to educate society and engage younger generation in cacao
farming.

41. Dr. Divina M. Amalin also mentioned that during the 25th Meeting of the Joint Committee
on ASEAN Cooperation in Agriculture and Forest Products Promotion Scheme, the ASEAN
GAP for Cacao was agreed to submit for further adoption to SSOM- 39th AMAF meeting on
10-12 July 2018 in Lombok, Indonesia. Then later approved by SSOM-AMAF during the
40th AMAF meeting on 11 October 2018, which was held in Ha Noi, Viet Nam.

42. She also requested for the confirmation of the representatives for the ASEAN GAP in
addition to the contributors. The list of final members in Annex 9.

43. She shared to the group that project on the Efficiency assessment of the Sterile Insect
Technique (SIT) for the control of CPB has been approved and awaiting for the official
letter of approval from International Atomic Energy Agency (IAEA). This is being funded
by IAEA under the Regional ASIA and PACIFIC project for a duration of five years. This
project is headed by Malaysia and for implementation in January 2020.

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44. Mr. Haya Ramba suggested for the inclusion of the activities for regional GAP
implementation under ACC. Suggested activities are the following:
a. Knowledge Exchange and Information Sharing on 4Ps (Pembersihan-Sanitation,
Pembajaan-Fertilizer, Pemangkasan-Pruning and Penuaian-Harvesting)
b. Research and Development (R&D) Projects on:
1. Development of fertilizer for cacao
2. Development of planting materials
3. Biologically-based approaches for pests and diseases
4. Climate change affecting cacao production

45. The full report of the 8th ACC TWGGAP Meeting appears as Annex 9.

10.3 Technical Working Group on Food Safety (TWGFS)

46. The 11th Meeting of the ASEAN Cocoa Club Technical Working Group on Food Safety
(ACC TWGFS) was held on 15th July 2019 in Pulse Grande Hotel, Putrajaya, Malaysia.

47. The Meeting was officially opened by Dr. Ramle bin Hj. Kasin, Deputy Director General
(Operation), Malaysian Cocoa Board. He welcomed all the delegates from the AMS to
Malaysia.

48. The Meeting was chaired by Dr. Sabariah Samsudin, Director of the Cocoa Downstream
Technology Division, Malaysian Cocoa Board, Malaysia.

49. The Meeting was attended by 11 members and observers from Indonesia, Malaysia,
Thailand and the Secretariat of the ACC and ACC TWGFS.

50. Indonesia informed the Meeting that Indonesia had hosted the 13th Session of The Codex
Committee on Contaminants in Foods (CCCF) in Yogyakarta, Indonesia on 29th April-3rd
May 2019.

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51. Indonesia also informed the Meeting that Indonesia had complied to the Codex Standard for
Cocoa and Cocoa Products and had implemented regulation for food safety through National
Food Survaillance Agency Decree Number 23 / 2017.

52. Malaysia reported on the development of analysis protocol on safety and quality for cocoa
based products as follow:
i. Analysis of polycyclic aromatic hydrocarbons (PAHs) in cocoa beans and cocoa products
using Gas Chromatography coupled to Tandem Mass Spectrometry (GC/MS/MS)
technique.
ii. Detection of Salmonella using Compact Dry ‘Nissui’ technique.

53. Indonesia informed the Meeting that EU has imposed regulation on Cadmium contamination
effectively on 1st January 2019 for cocoa and cocoa products. However, if an exporting
country has complied with Codex regulation, the EU cannot limit the export of cocoa and
cocoa products to EU region. This was informed in the EU-Indonesia Comprehensive
Economic Partnership Agreement (CEPA) meeting in May 2019.

54. Malaysia informed the meeting that Japan had notified the World Trade Organization
(WTO) on the draft amendments to the maximum residue levels (MRLs) for the agricultural
chemical: chlorpyrifos in certain commodities including cacao beans (Document no.:
G/SPS/N/JPN/641) from 0.05 to 0.01 mg/kg. The due date for public comment is 2nd August
2019.

55. Indonesia reported on the monitoring programme for cadmium, lead and ochratoxin in four
(4) provinces namely Central Sulawesi, South East Sulawesi, West Sulawesi and South
Sulawesi in 2019 and will continue monitoring those contaminants in the following years.
The results will be reported in the next meeting.

56. Malaysia reported on the monitoring of cadmium in cocoa beans and cocoa products from
different regions of Malaysia. The range of maximum level (ML) for cadmium as follow:
cocoa beans (0.28-0.70 mg/kg), cocoa powder (0.24-0.47 mg/kg), cocoa liquor (0.11-0.41
mg/kg), dark chocolate (0.04-0.07 mg/kg) and milk chocolate (0.06-0.14 mg/kg).

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57. Malaysia had scheduled a ‘Basic Course in Sensory Evaluation of Cocoa 2018’ on 23rd-24th
October 2018 as proposed in the 10th ACC TWGFS Meeting. Nevertheless, it is not
conducted due to no participation from the AMS except Malaysia.

58. Indonesia informed the Meeting that Indonesia proposed to develop ‘The ASEAN Standard
on Food Safety for Cocoa and Cocoa Products’ and the draft will be submitted to the
Secretariat of the ACC TWGFS to be circulated to the AMS for comments.

59. Malaysia informed the Meeting that Ministry of Health, Malaysia is in the process of legal
scrubbing for the amending food regulations pertaining to cocoa and cocoa products
(Regulation 274–277 and 279-281) under the Food Act 1983 (Act 281) and Food
Regulations 1985.

60. Malaysia informed the meeting on the Malaysian Standard (MS) as follows:
i. MS 1715:2018 Chocolate and Chocolate Products – Specification (Second Revision)
ii. MS 1819:2018 Chocolate Confectionery – Specification (First Revision)

61. The full report of the 11th ACC TWGFS Meeting appears as Annex 10.

AGENDA ITEM 11: CONSULTATION AND EXCHANGE OF EXPERIENCES AND


INFORMATION ON TRADE AND INVESTMENT POLICIES AND STRATEGIES

11.1 Enhancement of Private Sector Involvement

11.1.1 Cocoa Association of Asia (CAA)

62. The Meeting noted the status development and the activities presented as follows:

1. Meeting with Intercontinental Exchange (ICE) in London on 17th May 2018

In conjunction with the London Cocoa Dinner, several of CAA members attended a
meeting with ICE to follow up on the possibilities of ICE setting up a delivery point in
Asia.

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ICE was concerned regarding:

1) What price risk that CAA members cannot hedge with the current London and
New York contracts.
2) An additional contract in Asia can undermine the existing contracts.
3) A delivery point in Asia would affect the underlying value of the contract.

They indicated that they could look at having an ICE Asian contract, however would
require CAA to check for end user commitment. As this is very unlikely, the situation
thus remains status quo.

2. CAA Cocktail on 17th April 2019

This is a social and networking event for members and associates, held at a restaurant in
Singapore.

3. On-going Activities

(1) CAA grinds

The quarterly grinds (compilation of Malaysian, Singapore and Indonesian grinds as


contributed by CAA members) are on-going and are posted on CAA website.

(2) Asia Cocoa Academy and related programs

CAA has ongoing discussions with Enterprises Singapore and Singapore Management
University for their role and support in the proposed programs. The proposed programs
are taking longer time to prepare partly due to lack of suitable manpower.

11.1.2 Cocoa Manufacturers Group (CMG)

63. The Meeting noted the status development of the program and the activities presented as
follows:

i. CMG well represented across the cocoa players in Malaysia which consists majority
of cocoa grinders.

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ii. The member consists of 4 cocoa grinders and lead by MCB and FMM-CMG

iii. CMG convened its meeting with the MCB to discuss and propose solution on issues
affecting the development of Malaysia cocoa industry.

iv. Malaysian grindings of dry cocoa beans:

• 2017: 218,258 mt
• 2018: 249,661 mt

v. Malaysian cocoa grinders challenges in 2018:

• The farming ecosystem is constantly changing; not just changes to the weather, but
also changes to the plant varieties used, market conditions, labour quality and
diseases. This affect to low volume and inconsistent quality of cocoa beans.
• Local cocoa bean production could not support the huge demand from local
grinding and processing industry. The increase cost of doing business also affected
holistically.
• Industries are keen to work with MCB in terms of engagement with local farmers in
improving their plantations.

The full presentation appears as Annex 11.

11.1.3 Indonesian Cocoa Board (ICB)

64. The Meeting noted the status development and the activities presented as follows:

i. Meetings and discussions with related agencies or parties.

a. Discussion and Preparation of Revised Minister of Agriculture Regulation number


27/2016 to Minister of Agriculture Regulation 67/2014 concerning Requirements for
Quality and Marketing of Cocoa Beans

b. Meeting of Cocoa and Chocolate Businessmen with Ambassador of the Republic of


Indonesia to Tanzania.

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c. Meeting in the Context of Investor and Trade Enhancement in the Agriculture Sector
from Middle East Countries and Organization of the Islamic Conference (OIC) to
Indonesia

d. ED - ICCO Work Visits to Indonesia

e. Preparation of the ASEAN Draft Standard of Food Safety for Cocoa and Cocoa
Products

f. Collaboration between Germany and the Indonesian Cocoa Council in the Field of
Research

g. Organizing of Workshops and Seminars

i. Commemoration of Indonesian Cocoa Day 2018

The Indonesian Cocoa Day commemoration in 2018 on October 25, 2018 was held at
the Taman Anggrek Mall in Jakarta, with the theme "Together we improve
Indonesian Cocoa and Chocolate Production".

ii. Focus Group Discussion (FGD) in the framework of 2018 Plantation Day

Focus Group Discussion (FGD) with the theme "Alternative Sources of Sustainable
Development of Indonesian Cocoa Funding" which was held to commemorate the
61st Plantation Day, held at Sate Building, Bandung on December 8, 2018.

h. Indonesian Cocoa Council National Conference (National Conference of Cocoa Board)


in 2018

i. The Indonesian Cocoa Council National Congress 2018 or the 3rd National
Conference was held on December 9, 2018 in Bandung.

ii. The aim of the National Conference is to elect and determine the Indonesian Cocoa
Board Implementation Agency for the period 2018-2021 and the Steering Committee
for the period 2018-202, in accordance with the Articles of Association and Budget
Decree of Chapter IV Article 9.

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i. Plan of Activities for 2019

i. Indonesian Cocoa Day commemoration in 2019 in West Sumatra in September 2019


(Proposed plans for activities from Cocoa Board are required)

ii. Harmonization of national cocoa production data between the government and the
Cocoa Association.
iii. Together with ASKINDO held the IICC in Bali

iv. Cocoa Workshop / FGD in the framework of Plantation Day in December 2019

v. Following up on cocoa FGDs in Bandung specifically related to "Alternative Sources of


Sustainable Cocoa Financing in Indonesia" (in the form of the Internal Coordination
Meeting with Industry).

vi. Together with the Directorate General of Estate Crops and related agencies to discuss the
requirements for cocoa quality standards (revised Ministry’s Agriculture 67/2014
concerning requirements for quality standards and marketing of cocoa beans)

The full report appears in Annex 12.

11.1.4 Cocoa Foundation of the Philippines (CocoaPhil)

65. The 2016-2022 Philippine Cacao Industry Roadmap, anchored on the Value Chain
Approach and aligned with the 2022 Cacao Challenge (specifically to produce 100,000
mt of dried fermented beans by 2022), is crafted to provide a harmonized direction and
strategies that will serve as guide in the development and strengthening of the cacao
industry in the country.

66. A Philippine National Cacao Industry Council (Philippine Cacao) will also be created to
spearhead the development of the industry. This will be a private sector led council
composed of public and private sector representatives. To provide co-leadership, the
Department of Agriculture will co-chair the Council.

67. Aligned with this, regional cacao industry council are also being created through the
directive of the Department of Agriculture. For instance, Region IV MIMAROPA was

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created in August 2018. The region targets to produce 14,000 mt to contribute to the
Philippine Cacao Industry Roadmap target of 100,000 mt by 2022.

11.1.5 Viet Nam Cocoa Committee (VCC)

68. Continue to maintain the existing area, develop an area of intercropping with cashew,
coconut and fruit trees in concentrated areas with ecological conditions, land, large-scale
farm households and investment resources. Production, prioritize areas with irrigation
conditions.

69. Promote and adopt policies to support enterprises to invest in production, build
concentrated production areas through linking production with farmers. Enterprises are
leading companies to develop cocoa production. Development of cocoa production on a
production basis towards intensive, quality and certified production.

70. Promote the development of the domestic cocoa processing industry, encourage
production models associated with processing and consumption of domestic cocoa
products, gradually build up the brand of cocoa products of domestic companies.

The full report appears in Annex 13.

11.2 Strengthening Business Linkages and Networking

71. There is no update report on this agenda from the AMS.

Strategic Thrust 4: Enhancement of Competitiveness of the Products

AGENDA ITEM 12: STRENGTHENING COOPERATION IN HUMAN RESOURCES


DEVELOPMENT

12.1 Efficient and Effective Extension Services


12.1.1 Training on Sustainable Cocoa Farming

72. Malaysia informed that Farmers’ Field School (FFS) is a participatory training approach
to a group of 20 to 30 farmers supervised by trained facilitators throughout one crop
cycle. The objectives of FFS are as follows:

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i. Provide an environment in which farmers acquire the knowledge and skills to be
able to make sound crop management decisions
ii. Sharpen farmers’ abilities to make critical and informed decisions that make their
farming activities more profitable and sustainable
iii. Improve farmers’ problem solving abilities
iv. Benefits of working in group activities
v. Empower farmers to become ‘expert’ on their own farms and to be more confident
in solving their own problems through minimum supervision

73. The facilitators are the researchers and extension agents that have been trained under the
CocoaSafe Project sponsored by the Standards and Trade Development Facility (STDF)
which collaborated with Centre for Agriculture and Bio-Science International (CABI)
and International Cocoa Organization (ICCO). The facilitators are well equipped with
knowledge and experiences on cocoa management from planting to storage of beans.

74. Malaysia also informed that, since the implementation of the FFS program the production
of the cocoa farmers have increased at an average of 5% to 10%.

75. Viet Nam informed that there is a similar program on Farmer Field School (FFS) in Viet
Nam that have trained 45 farmers to be an extension staffs where they provides services
and knowledge particularly on the management of the cocoa plantation.

76. On this initiative, the Philippines recommended to establish South East Asia pictorial
guide of Pests and Diseases and to integrate smart farming technology for cacao
production.

12.1.2 Strengthening Cooperatives and Farmers Organization

77. There is no update report on this agenda from the AMS.

AGENDA ITEM 13: ENHANCING COMPLEMENTARITY OF THE PRODUCTS

13.1 Promote Knowledge Exchange and Information Sharing

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78. Malaysia reported on e-Cocoa Portal that has been developed since 2016 and officially
applied internally in 2018. The objective of this portal is to facilitate smallholders and
cocoa licensors to obtain MCB information and services.

79. Indonesia reported on the Center for Developing Competency of Integrated Cocoa
Processing Industry in Batang, Central Java was established to create innovation and
value added product on cocoa and chocolate by teaching industry program approach.
This program is aimed to create 1000 new entrepreneur with slogan ‘One Village One
Product’.

80. Philippines informed the Meeting that Cocoa Smart Farming Technology is being
considered for cacao farming for the new generation farmers to be involved.

81. Viet Nam reported on the e-Training Program using social media such as Zalo and
Facebook to communicate with farmers. Apps appliance used to transfer technology and
disseminate information to cocoa farmers as an effective communication tools.

AGENDA ITEM 14: INTENSIFYING COOPERATION IN TECHNOLOGY


DEVELOPMENT AND TRANSFER

14.1 Research and Development (R&D) Project

14.1.1 (i) Trials on Selected Cocoa Progenies in Selected ASEAN Region - Progress
Report Hybrids Trial in Indonesia

82. The Meeting was informed that the Joint Progeny Trial Programme in Indonesia started
in December 2005. The objectives of the trial are:

i. Clonal selection by testing some promising cocoa hybrids in Indonesia and Malaysia
using similar progenies.
ii. To select the superior genotype for clonal material resistance to main pests and
diseases such as CPB and VSD.

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83. Indonesia reported on the progress of the activity as follows:

i. The hybrid population was damaged because of VSD but some genotypes have been
selected and duplicated at Indonesian Coffee and Cacao Research Institute (ICCRI). The
selection was conducted based on the high yield and VSD resistant potential. There are
four selected genotypes namely 6M (Malaysian hybrid), Kembu I/I/8 (Indonesian
hybrid), Kembu IV/I/8 (Indonesian hybrid) and Kembu 16/17 (Indonesian hybrid).
ii. The selected genotypes have already tested at ICCRI together with others promising
genotypes. VSD symptom, number of pod and growth score is observed.
iii. The initial results showed that the Kembu 16/7 showed potential resistance to VSD and
Kembu IV/1/8 showed potential to VSD resistant and high yield.

14.1.1 (ii) Trials on Selected Cocoa Progenies in Selected ASEAN Region - Progress
Report on ASEAN Cocoa Club Progeny Trial

84. Malaysia reported that the trial was established in April 2006 under the ASEAN Cocoa Club
Joint Project with an objective to produce hybrids population which possesses good yield
and flavor as well as acceptable bean characteristics. The two institutions involved in the
project are the MCB and Indonesian Coffee and Cocoa Research Institute (ICCRI).

85. Throughout 11 years of trial (2008 to 2018), top six progenies that produced higher pod
yield per tree are KW162 X KW163, KW162 X KEE2, ICS60 X KW162, KW162 X
KW165, UIT1 X NA33 (C) and TSH858 X KW162. KW162 X KW163 produced the
highest average pod yield per tree (7.90) followed by the KW162 X KEE2 (7.23), ICS60 X
KW162 (6.52), KW162 X KW165 (6.37), UIT1 X NA33 (5.95) and TSH858 X KW162
(5.03).

86. Top six progenies that produced higher average dry bean yield are KW162 X KW163,
KW162 X KEE2, ICS60 X KW162, UIT1 X NA33 (C), TSH858 X KW165 and KW162 X
KW165. KW162 X KW163 produced the highest average dry bean yield (258.21kg/ha)
followed by the KW162 X KEE2 (221.74kg/ha), ICS60 X KW162 (192.38kg/ha), KW162
X KW165 (185.98kg/ha), TSH858 X KW165 (185.49kg/ha) and UIT1 X NA33
(178.70kg/ha). Figure 2 showed the trend of top six progenies with higher dry bean yield
from 2008 to 2018.

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87. The pod and bean characteristics analysis on 11 progenies showed that all of the progenies
indicated pod value more than 25 pods to produce 1kg of dry cocoa beans with exception to
progenies ICS60 X KW162 and KW162 X KW163 (Table 5). Progeny ICS60 X KW162 has
the least PV compared to others with 19.8 pods. The high PV might be reflected by small
bean size from some of the progenies. Progeny ICS60 X KW162 possesses the biggest bean
size with 1.52g. The control progeny UIT1 X NA33 shows the highest bean number per pod
(44 beans) followed by KW162 X KW163 (41 pods) and ICS60 X KW163 compared to
others. Progeny ICS60 X KW1623 has the highest percentage of shell content with 19.84%
followed by ICS60 X KW162 (17.97%) and ICS60 X KEE2 with 15.80%. KW162 X
KW165 indicated the highest BCR with 36.80% followed by TSH858 X KW163 (36.1%).

88. First assessment on 11 progenies in year 2016 gave the range between 1.76 to 2.33, second
assessment in year 2017 has the range between 2.17 to 2.60 while third assessment in year
2018 has the range between 2.03 to 2.43 (Figure 3) which were categorized as moderate
tolerant. The average assessment from 2016 to 2018 showed 6 progenies has better tolerant
against VSD (with the lower VSD scores) compared to control (UIT1 X NA33). They are
KW162 X KEE2 (1.99), KW162 X KW163 (2.10), TSH858 X KW163 (2.16), KW162 X
KW165 (2.23), TSH858 X KW165 (2.23) and TSH858 X KEE2 (2.26).

89. Overall, the progenies KW162 X KW163 and KW162 X KEE2 were the most productive
among those tested in this trial. Besides progenies KW162 X KW163 and KW162 X KEE2,
other progenies that better than control UIT1 X NA33 were ICS60 X KW162, KW162 X
KW165. Two progenies (KW162 X KW163 and KW162 X KEE2) with high yielding also
possessed the lowest VSD scores towards the VSD disease compared to other progenies.

14.1.2 Project on Pests and Diseases (P&D) Management

90. Malaysia informed the Meeting that the three areas of research collaboration are as follows:

i. Cocoa Pod Borer (CPB)


ii. Vascular Streak Dieback (VSD)
iii. Black Pod Rot (BPR)

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91. Malaysian informed the Meeting that a new project entitle ‘Development and optimization
of an artificial diet for laboratory rearing of the CPB has been initiated with collaboration
among MCB and MARS Food LLC Singapore Branch. Project has been implemented in
MCB Malaysia and MARS Inc. in Sulawesi Indonesia.

92. The project will be carried out for two years, starting from January 2019 to December 2020.
The main objectives are:

i. Development of efficient CPB artificial diet by sharing existing knowledge and


performing advanced optimization of diet in a close collaborative engagement.
ii. Testing of the development success variability related to cocoa clones used in the
artificial diet.

14.1.3 Progress Report on Training and Exchange of Technical-Expertise and


Research Material

93. Malaysia informed the Meeting that the four areas of training and exchange of technical-
expertise and research material are as follows:

i. Training on the needs of the respective member countries and who have the expertise and
facilities.
ii. Exchange of expertise is proposed through visit of scientist within the AMS.
iii. Malaysia may wish to offer courses on cocoa bean grading and basic chocolate making.
iv. Exchange of materials is on a reciprocal basis.

94. Malaysia further informed that no progress on the training and exchange of technical-
expertise and research material among the AMS.

AGENDA ITEM 15: OTHER MATTERS

15.1 ASEAN Cocoa Club National Focal Point

95. The ACC Secretariat updated the Meeting on the current National Focal Points 2019
submitted by the member countries.

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96. The Meeting was informed that the total number of memberships of the ASEAN Cocoa
Club National Focal Points in 2019 is 29 members. Changes were also made in the focal
points for Indonesia, Malaysia, Myanmar, Philippines, Thailand and Viet Nam.

15.2 Report on the Update of the Strategic Plan of Action (SPA)

97. The Meeting updated on the progress of the output indicators for the sub-activities of the
new Strategic Plan of Action (SPA) for ACC for the period of 2016-2020 based on the new
Strategic Thrusts and Action Programmes which was endorsed in the 24th JCM Meeting
held on 18-20 July 2017 in Siem Reap, Cambodia. The progress of the SPA is in Annex 14.

15.3 Requested Activities By AMS

98. Myanmar requested for training on cocoa farming to be conducted in December 2019.

AGENDA 16: DATE AND VENUE OF THE NEXT MEETING

99. Malaysia nominated Thailand for hosting the 23rd ACC Meeting on the ASEAN
Cooperation and Joint Approaches in Agriculture and Forest Products Promotion Scheme to
be held tentatively in July 2020. Thailand will communicate with the ACC Secretariat on
their agreement to host the next Meeting.

100. In conjunction with the 23rd ACC Meeting, Thailand requested for a workshop back-to-
back with the ACC Meeting in coordination with MCB.

AGENDA 17: ADOPTION OF THE REPORT

101. The Meeting unanimously adopted the Report of the 22nd Meeting of the ASEAN Cocoa
Club on the ASEAN Cooperation and Joint Approaches in Agriculture and Forest Products
Promotion Scheme held on 16–17 July 2019 at Pulse Grande Hotel, Putrajaya, Malaysia.

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ACKNOWLEDGEMENT

102. In his closing remarks, the Chairman expressed his gratitude and thanked to all delegates
for their active participation in the Meeting. It had been a fruitful two days meeting and he
was glad that progress has been made in the programs and activities planned last year. He
also thanked the Local Organizing Committee and the ACC Secretariat for their support,
hard work and making this Meeting happening in Malaysia.

103. The delegation of Indonesia, Malaysia, Myanmar, Philippines, Thailand and Viet Nam
expressed their sincere appreciation to the Malaysian Government in particular the
Ministry of Primary Industries and the Malaysian Cocoa Board for the warm hospitality
accorded to them and the excellent arrangements made for the Meeting as well as the ACC
Secretariat and the Local Organizing Committee of Malaysia for their hard work and team
cooperation rendered in ensuring the successful of the Meeting.

104. The Meeting was cordially held in the traditional spirit of ASEAN solidarity.

Putrajaya, Malaysia
17 July 2019

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