We only have 8% of arable land to produce our food, and the remaining are mostly under oil-palm (8.0m hectares) and rubber (1.2m hectares). With such constraints, improving our nation’s food security status would be a daunting task lest we develop new agricultural reform strategies such as employing best practices in production and management systems, realigning import substitution, wooing big players in agriculture, proactive development of the food industry, and the use of new agriculture technologies. One of the measures for the country to shore up food security is to modernise the agro-food sector. National Agro-Food Policy (NAFP) was introduced in 2010 following the expiry of Third National Agriculture Policy (NAP3) and marked the first time that a policy was specifically formulated for the agro- food industry. Following the onslaught of the 2007-08 global food crisis which brought about record high food prices, the issue of food security became a global focal point. Malaysia, as a significant net food importer, was not spared the adverse effects of the food crisis.
NAFP was implemented in 2011 with an aim to transform the agro-food industry into a more modern and dynamic industry. The policy focuses on improving the efficiency of the agro- food value chain to enable the industry to achieve greater productivity, competitiveness, and knowledge. Efforts to spur the agro-food sector mean that we will consequently further strengthen the country’s food security. Here we need to focus on improving productivity, increasing skills of farmers, fishermen, and smallholders, and ensuring compliance to market requirements. Smallholders are the major players for key crops such as rice, fruits, and vegetables. Developing the potential to increase the productivity and incomes of smallholders will therefore contribute to achieving our food security. Hence, continuous efforts are necessary to strengthen our productivity, quality and efficiency throughout the value chain which is typically as described below:
The Typical Agricultural Value Chain
HARVESTING AND TRANSPORT
PRIMARY PROCESSING AND STORAGE
DISTRIBUTION, PACKAGING, AND HANDLING
WHOLESALE AND RETAIL MARKETS
SECONDARY PROCESSING
PRODUCTION
• Smallholder farmers • Farmer associations • Input providers
• Smallholder farmers • Farmer associations • Logistics companies
• Primary processors • Machinery suppliers
• Secondary processors • Machinery suppliers
• Packaging companies • Logistics companies
• Grocery stores and supermarkets • Food and beverage companies
Source: A.T. Kearney analysis
The widening of agriculture trade deficit is due to the strong domestic demand. Fish, meat, vegetable, and fruit items are among the high-demand food products. According to MIDF Research (2019), expanding the domestic supply of food products would reduce the country’s food trade deficit, taper food inflation, and create a higher value-added industry.
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Malaysian Technology Strategic Outlook 2019/2020 Intergration of High Technology
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