Malaysia accelerates agricultural modernisation to strengthen food security

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Highlights

The government has allocated RM2.6 billion for rice production subsidies and aims for grain corn cultivation to meet 30% of domestic demand by 2030.
Malaysia assures the public that basic food supplies are sufficient, with six months of buffer rice stocks and eight months of fish supplies in the event of supply chain disruptions.
The ministry is monitoring El Niño risks, which could bring temperatures of up to 40 degrees Celsius after December. It is prioritising domestic water supplies and advising paddy farmers to follow the planting schedule.

This article was translated from the original. Read the original version by our correspondent here.

Policy proposals and production targets

As reported by The Edge Malaysia, Mohamad said Malaysia could learn from Brazil's approach of increasing agricultural output through a market guarantee system rather than relying solely on subsidies. He said the Brazilian government guarantees the purchase of produce that cannot be sold in the market, giving farmers the confidence to increase production.

However, he said this approach would not be suitable as the sole measure for rice production in Malaysia, despite RM2.6 billion being allocated for domestic rice production subsidies. Paddy farmers still need ongoing support and incentives to boost yields, he said. Some farmers in areas under the Muda Agricultural Development Authority are already achieving eight to nine tonnes per hectare, but overall progress remains slow.

He also said Malaysia had achieved self-sufficiency in fish supply through the rapid growth of aquaculture, while domestic chicken and egg production was also sufficient to meet the country's needs. To reduce import dependence, the ministry is promoting grain corn cultivation in collaboration with major companies, with a target of meeting 30% of domestic demand by 2030. It is also expanding onion cultivation based on research by the Malaysian Agricultural Research and Development Institute (MARDI).

Supply chain risks and national preparedness

Mohamad also stressed the need to strengthen ties between agricultural research institutions, universities and farmers so that technology can reach rural areas more quickly. He cited Thailand as an example of how farmers engage more actively with agricultural institutions to accelerate the adoption of innovations in the field.

On geopolitical threats, he urged the public to be prepared for the possibility of cyberwarfare disrupting food supply chains, as several European countries have already experienced supply disruptions and food inflation. However, he assured the public that the country's basic food supplies were sufficient, with buffer stocks of rice for at least six months and fish supplies for eight months. The Federal Agricultural Marketing Authority (FAMA) is prepared to manage physical food distribution if access to digital systems is disrupted.

On weather conditions, the ministry is monitoring forecasts from the Malaysian Meteorological Department (MetMalaysia) regarding the El Niño phenomenon, which could bring extreme temperatures of up to 40 degrees Celsius after December. He advised paddy farmers to follow the established planting schedule to ensure prudent management of water resources at the three main dams in the MADA area, stressing that domestic water supplies would be prioritised if water levels fell too low.

In our previous coverage of Malaysia's need to strengthen its fiscal buffers after Budget 2027, we highlighted the warning that global shocks—from geopolitical tensions to climate shocks—must now be treated as recurring risks, not exceptional events. The article also examined how limited fiscal space, potentially persistently high financing costs and rising spending commitments call for reforms such as broadening the tax base and improving targeted subsidies to make the country more resilient to recurring crises.

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