Agricultural development has certainly contributed to land use change as well as logging for timber. 'While shifting cultivation has been a significant agent of land use change in western and central districts, conversion to settled agriculture has affected substantial areas of lowland eastern Sabah. Mustapha (1991) considered that 74% of Sabah's population still resided in rural areas. By about 1990 the state's dualistic rural economy, with estate-type agriculture co-existing alongside much small-scale semisubsistence agriculture, was contributing 50-55% of Sabah's GDP and providing over 45% of its employment. Under the National Agricultural Policy (NAP) 1984 and NAP 1992-2010, rapid development in the rural sector has brought about a progressive modernisation of agriculture in

With the Second Malaysia Plan (1971-75), rural development in Sabah was given new policy directions. The eradication of poverty and the restructuring of society was the aim of the New Economic Policy (NEP). With agriculture's major role in the rural economy, agricultural development became synonymous with rural development (Yapp et al., 1988). Four broad rural development policy approaches were adopted: 1 large-scale settlement schemes 2 in situ development 3 agricultural support services 4 development of plantation estates

Agricultural support services Extension services have been strengthened by the National Extension Project implemented from 1979 onwards. This strategy has involved a systematic programme of training agricultural technicians together with related frequent visits to farm holdings. Fourteen farmers' associations have been established across Sabah and credit facilities improved. Further. a Padi Planting Subsidy Scheme was introduced in 1982 aiming to increase local production of padi rice.