Where we are today
The agriculture sector plays an important role in Malaysia's economic
development—providing rural employment, uplifting rural incomes and ensuring
national food security. Excluding industrial crops such as palm oil and rubber,
the agriculture sector contributed RM20 billion or 4 percent of Malaysia's GNI
in 2009. Traditionally labelled as the poor man's sector, the face of
agriculture is slowly changing as entrepreneurs in diverse businesses like
swiftlet nest-ranching and large-scale paddy (rice) farmers are able to move up
to Malaysia's high-income group.
Vision for the future
By 2020 agriculture will be transformed into agribusiness, moving towards a
model that is inclusive but simultaneously anchored on market needs,
economies of scale and value chain integration. Malaysia will focus on large
global markets with high growth potential such as aquaculture and premium
processed foods, while maintaining a strong presence in strategic
sub-sectors such as paddy and livestock to ensure national food security. To
do so, we will need to capitalise on natural resources while enhancing
productivity and adopting a truly demand-driven approach.
Targets and aspirations
The Agriculture NKEA is targetted to raise total GNI contribution by RM34
billion to reach RM49 billion by 2020. The NKEA will create an additional
75,000 jobs, mostly in rural areas, where we target to increase the incomes
of farmers participating in our initiatives by two to four times.
The NKEA plans to bridge this gap through 16 EPPs that catalyse the
establishment of market-driven, industrial scale and integrated
agriculture-related businesses along four themes.
Capitalising on Malaysia's competitive advantage
aim to unlock value from Malaysia's biodiversity, including developing
our diverse natural herbs into premium herbal products, commercialising
our unique native seaweed varieties, expanding swiftlet nest-production,
farming through integrated cage aquaculture systems and rearing cattle
in oil palm estates.
Tapping premium markets
We will focus efforts on
expanding production of premium grade fruit and vegetables and certified
shrimps for export as well as developing premium processed foods and
introducing a fragrant rice variety for non-irrigated areas.
Ensuring food security objectives are consistent with
The Government will ensure that food security objectives
are met. As the population continues to grow, these EPPs will scale up
and strengthen productivity of paddy farming and cattle ranching as well
as establish local dairy clusters with the help of foreign players to
help meet increasing demand.
Expanding participation in the regional value chain
aim to expand our participation in the region by acquiring foreign farms,
undertaking contract farming activities overseas and providing regional
services in niche areas such as molecular marker discovery and
validation for breeding.
In addition, five key enablers are required to support the implementation of
the EPPs and business opportunities ranging from providing incentives for
anchor companies (to transform from small-scale production-centric
activities to large-scale, market-centric approach) to strengthening
adoption of good agricultural practices, making regulatory changes,
strengthening logistics and ensuring a sufficient pipeline of human capital.