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The Malaysian Agricultural Industry in the New Millennium
– Issues and Challenges
Baki B. Bakar
University of Malaya
Abstract Malaysian agriculture is characterized by dualism
, viz. smallholder’s sector
with an average farm size of 1 - 2 ha, and the plantation-based estate sector with
farm sizes in excess of 500 ha. This dichotomy in agricultural industry placed great
economic emphasis on cash crops, namely oil palm, rubber, and cocoa although
sizeable acreages of the arable lands are planted with food crops like rice, pepper,
fruit orchards, vegetables, and herbs. The industry has evolved from a stereotypic
Third World peasantry economic entity to the vibrant third engine of economic
growth contributing no less than US$5.63, 6.34, 7.75, and 8.48 billion to the national
GDP in 2003, 2005, 2007 and 2008, respectively. Agriculture remains an important
part of the national economy in the new millennium for the increasingly burgeoning
populace with the challenge to provide both food security and safety, and
sustainable development and wealth creation. The primary issues besieging
Malaysian agriculture in the new millennium include ensuring food security and food
safety for the populace with parallel and determined effort to sustain, and where
possible, increase exports of agricultural produce. Albeit the apparent decline of
agricultural sector to the Malaysian national economy, agricultural development in
Malaysia, faces three major challenges in new millennium, viz. (i) Persistence of
poverty among the rural farming community; (ii) Food insecurity for the traditional
agricultural systems; (iii) Continuing and perennial pressure on the deterioration of
the natural resource base; (iv) Labour-intensive plantation agriculture which faces
the valgary of foreign labour; (v) Low returns from agricultural investment; (vi)
Stagnating prices of commodities; (vii) High costs of land, and (viii) Often volatile
market forces. The Malaysian government re-emphasis and renewed interest in
agriculture especially for food production principally to off-set the unhealthy trend of
steady increase in food imports augurs well in promoting agricultural development in
the country. This coupled with the opening of new economic zones in Peninsular
Malaysia, Sabah and Sarawak supported by the fledging government-based
administrative, research, technical and extension services, and augmented by those
in the private sector