Malaysia is losing out on the lucrative ketum trade by refusing to allow the plant to be cultivated on a commercial basis for export purposes, said Padang Besar MP Zahidi Zainul Abidin.

"I've been raising this issue for years. The trade is dominated by Indonesia and Vietnam who are exporting to Europe while we are still behind," he said, according to Harian Metro today.

Zahidi (photo), who also leads the Rubber Industry Smallholders Development Authority (Risda), estimated that the opportunity cost for Malaysia was RM100 million a year.

"The ketum plantations in Kalimantan, Indonesia are generating RM10 million in profits a month while we are still arguing about it here," he added.

The European market, he said, was fond of ketum produced in Perak, Kedah and Perlis due to its quality.

Zahidi said Putrajaya could collect large amounts of taxes from ketum farmers if the industry was allowed to flourish.

"Some people don't understand and think if commercial ketum farming is allowed, it would lead to abuse.

"I have said it before: Plantations operated by Risda will be tightly regulated in cooperation with the National Anti-Drugs Agency," he said.

Ketum (mitragyna speciosa) or kratom as it is often called in the western world, has opioid-like effects and is used locally for medicinal purposes.

Commercial cultivation and use of ketum are banned in Malaysia, although it is technically not illegal to own the plant.

Perlis is among the best-known places in Malaysia for cultivating ketum for export and medicinal purposes.