Smart Farming Could Resuscitate Malaysia’s Ailing Agriculture Industry

Published 2021년 5월 30일

Malaysia’s agriculture sector has been on the decline for the longest time. Smallholder farmers have dominated the industry, and the country has been heavily reliant on imports for staple foods such as vegetables and meat. Following the global impact of COVID-19, which negatively affected Malaysia’s economy, the country is now seriously looking into food security strategies such as smart farming to boost the growth of the agriculture sector.

Tridge interviewed Ameer Fahad Khad, the Director of Blooming Sprout, an agricultural enterprise based in Malaysia, for insight. Blooming Sprout focuses on the import of agricultural goods, such as red onions from Pakistan and India. The company has an established clientele portfolio, importing 900 to 1200MT of onions into the country monthly.

Impact of COVID-19 on the Malaysian economy

Besides the success of the country’s cash crop oil palm, Malaysia’s agriculture sector has not had much growth. Large-scale vegetable farmers are scarce, and the market is heavily import-driven.

“Malaysia is not a top agricultural producer because we don’t have the landscape for it. The weather is also not suitable, as the country is close to the equator. As a result, most products such as onions are imported from Southeast Asia, Pakistan, Bangladesh, and India,” stated Khan.

The impact of COVID-19 has left the country’s economy reeling from food scarcity and rising prices, as food security was brought to the limelight. Consumers felt the rising costs of products such as vegetables and meat. The supply chain was heavily disrupted, and this affected the import and export of food products. As a result, the Malaysian economy contracted by 5.8% in 2020 due to the pandemic.

“Significant issues were faced in terms of shipping and logistics, as you remember the incident concerning the ship that was stuck on the Nile River. These types of problems had an effect on the delivery time and the prices as well. There were also border closures and restrictions that affected trade with countries such as India, and ships could not leave on time, which involved the delivery timelines. Unfortunately, many businesses shut down during this period, and many people lost jobs,” explained Khan.

Smart farming, a possible solution

The Malaysian government plans to revisit its approach to agriculture by modernizing the sector and embracing smart farming to increase farmers’ income and elevate the industry. In the coming four years, the Malaysian government aims to transform the Federal Land Development Authority (FELDA) by diversifying the income streams of its settlers. The strengthening of Malaysia’s agro-food policy would enable the introduction of measures designed to improve farmers’ income, create agricultural jobs, and increase agro-exports. The government seeks to prepare a farming sector that is more responsive to the nation’s contemporary food economy, including developing the capability to provide more high-value foods that the region and Malaysia consume, such as fragrant rice varieties.