Economist: Public-Private Partnerships Able To Reduce Malaysia's Food Import Dependence

By Wan Nadia Khairani Wan Chik KUALA LUMPUR, June 16 (Bernama) -- Partnerships between the public and the private sector in intensifying the production of agricultural and livestock products on a large scale could increase the level of self-sufficiency of the agro-food sector in the country. Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said in line with the increase, the country is expected to be able to reduce its dependence on imported food sources effectively and consistently. “For example, if we look at 2020, the subsistence level for mutton supply recorded was 9.6 per cent. This means that in terms of domestic production capacity, the supply of mutton that can be produced (for the local market) is only 9.6 per cent, the rest needs to be imported. “The subsistence level for beef was only 22.2 per cent and the same goes for some types of vegetables such as chilli (30.9 per cent), and ginger (18.9 per cent). Many subsistence levels under the agro-food sector in the country are below 100 per cent,” he told Bernama Radio yesterday (June 15) regarding joint efforts of farmers’ organisations and local agricultural associations in increasing agro-food resources. On June 14, 2022, the National Farmers Organisation (Nafas) and the National Cooperative Movement of Malaysia Bhd (Angkasa) announced that they would be more proactive in grain corn farming in an effort to reduce the dependence on imported food supply, especially on poultry. Nafas also aims to capture 20 per cent of the market with the production of 144 million chickens a year, while Angkasa aims to produce 30 million chickens as part of efforts to boost the country’s food security. Mohd Afzanizam said that efforts to increase the level of self-sufficiency to a higher level should be done gradually. “However, the effort should be supported by policies that also focus on survival-related initiatives as well as the protection of business chains in the agro-food sector,” he noted. He explained that this requires a thorough policy on the challenges faced such as the country’s dependence on imports in terms of fertilisers and feed; while it also affects the business chain of the agro-food sector. “So, there is a need for us to work to further enhance the sector’s capacity to be more productive and at the same time, reduce the country’s dependence on import sources. “Currently, we see some agro-food exporting countries pursuing policies that are more protective of their domestic sectors and this makes our country quite vulnerable to the risk of supply shortages as we are too dependent on imports of these materials,” said Mohd Afzanizam. Therefore, more joint ventures should be mobilised to strengthen the country’s food security to a level that is not only stable but also able to be the country’s main export in the future, he added. Efforts in terms of good policies and implementation need to be made to enhance the sector’s ability to be more competitive, he said, adding that efforts to reduce dependence on food imports are highly encouraged. He also said that in terms of communication with the people, especially young people who want to be involved in this sector, it needs to be clear and presented in simple language to be able to attract the youth. “I believe the glory of the agro-food sector can be restored by balancing development efforts between urban and rural areas, which would eventually reduce population density in urban areas. “I am confident this sector can be a catalyst for more sustainable development,” Mohd Afzanizam said. The agro-food sector each year recorded an increase in total imports. The most recent food import in 2021 amounted to RM63.6 billion, while exports recorded RM40.7 billion. Mohd Afzanizam said the RM22.9 billion deficit in the agro-food sector was largely contributed by cereals, meat, vegetables and dairy products. -- BERNAMA