1. MALAYSIAN
ECONOMY

2. I NTRODUCTION
• The agricultural sector has contributed to the growth and major
contributors to national income and export earnings
• It‟s become basis of economic growth and main contributor in national
economy prior to the 1970s
• The agricultural sector initially derived from the increase in the
production of livestock, fisheries, and other miscellaneous crops
• The agricultural industry more valuable cash crops owing to the
increase in earnings from major commodities such as palm oil, rubber
and food commodities
• It has enabled the sector to retain its workforce and shore up the
economic downturn of the 1997 financial crisis

3. S CENARIO OF THE N ATIONAL A GRICULTURAL
S ECTOR
Pre-Independence Period (1800-1957) After Independence (1957)
 Before Independence, the agricultural sector was • The period after Independence until 1970
characterized by dualism between the plantation saw increased government intervention
sector and the smallholder sector. which to improve productivity and
 Plantation sector was dominated largely by income in the subsistence sector and
Europeans and it specialized in a few reduce high dependence on rubber for
commercial crops such as rubber and palm oil export earnings
 The smallholder sector were owned mostly by • Malaysia inherited an economy largely
Malay peasants who were involved in traditional based on the export of tin and rubber
rice cultivation. Chinese and Indian immigrants • Continued with large-scale planting
grew a variety of crops on small plots such as (with some diversification) of export
pepper, tapioca and vegetables commodity cash crops such as oil palm
 The composition of agricultural crops during this era
• Started cultivating oil palm because the
can divided into 2 categories:
major foreign plantations seized upon the
1. Major crops (rubber, palm oil & rice)
opportunity of strong export demand for
Provide most of the export earning for the country
vegetable oils and shorter immaturity
2. Minor crops (food crops, fruits & spices)
period of oil palm compared to rubber
Create employment & income for the smallholder
tree
 Before Independence, there were distinct differences
in terms of economic organization and technology • Agriculture led by rubber and palm oil
between smallholder subsistence and plantation continued to be the dominant
sector. As a result, the productivity and income levels contributor
of the sectors differed greatly

4. T HE I MPORTANCE OF A GRICULTURAL S ECTOR
 Backbone of the economy
 at independence, it contributed 39.3% to GDP, generated 58.3% of a
total employment and about 50.0% to export earnings.
 After independence, economy underwent a diversification, so the
contribution declined.
 In 1980, still contributed 22.9% of total GDP, 39.7 % to employment
and less than 22.9% to export earning.

6. T HE I MPORTANCE OF A GRICULTURAL S ECTOR
 Diversifying and shielding the economy
- In recent years, agriculture is considered a vital sector to the economy of Malaysia
it play its role in diversifying and shielding the economy from external shock.
- The increase in earnings of major commodities, particularly palm oil and pepper as
well as food commodities, enabled the sector to retain its workforce and withstand
the economic downturn of 1997-1998.
 Development to rural areas
- By promoting the agricultural sector, we are bringing development to rural areas
thus reducing imbalance in urban-rural development especially in the less developed
states.

7. T HE I MPORTANCE OF A GRICULTURAL S ECTOR
 Increased self-sufficiency  Improve balance of trade
The food import bill has been a long standing
- In the past, the country relied on other problem in Malaysia. In 1970, the country had a
countries to meet a significant proportion deficit of RM407.8 million and the food import
of our food needs. However lately, bill has been growing steadily. In 2000, import
countries which have traditionally of food items reached RM13.0 billion and
supplied us with food experienced expected to increase to RM22.0 billion in 2005
growing population and are rapidly
industrializing (eg Thailand, Vietnam,
Indonesia). They may not be able to  Increased food production
supply us food as much as before. The sector contributed not only as a supplier
Furthermore, currently Malaysia is only of raw materials to the resource-based
self-sufficient in the production of eggs, industries, but also in term of food
poultry and fruits. For food security production and Malaysia aim to be
reasons, we must try to increase self- centre/hub for ‘halal’ food production
sufficiency in other foods especially meet,
rice and milk.

8. A GRICULTURAL P ROGRAMMES
In-Situ Development
-is the effort by the government to improve productivity in existing agricultural areas.
-It is comprised replanting, crop diversification and integrated agricultural development projects
(IADPs).
- Agricultural consolidation and rehabilitation programmes were also implemented under in-
situ development to improve yield and productivity in the small holdings.
IADP
- Designed to revitalize and rehabilitate in-situ existing agricultural areas facing problems of
low productivity, low income and high rate of poverty.
- Some IADPs started as large-scale irrigation projects aimed at increasing productivity and
income of farmers and to increase self-sufficiency of rice production.
- Improved irrigation, drainage facilities, complementary inputs and other agricultural support
services such as subsidies, credit and marketing were introduced.
- Example of IADP ; Muda, Kemubu, Besut, Sungai Manik and Kelantan Utara.
- Other IADPs are based on mixed crops, the replanting of rubber, coconut, pineapple or
rehabilitation through diversification into more profitable crops such as palm oil and cocoa as
in Johor Barat, Pahang Barat and Negeri Sembilan Timur.

9. A GRICULTURAL P ROGRAMMES
Land Consolidation and Rehabilitation
- Land consolidation aims at consolidating enlarged fragmented
and uneconomic holdings. Uneconomic holding has been
identified as a major factor contributing to low productivity and
low income among farmers. Enlarged farms benefit
smallhalders.
- FELCRA, establish in 1966, has been entrusted the role of land
consolidation and rehabilitation such as consolidation od
unused government land, rehabilitation of unsuccessful state-
managed schemes and management of youth land development
programmes.
- By 1985, total land development and rehabilitation under
FELCRA was 81.8 thousand hectares under RISDA and 448.3
thousand hectares under other state agencies. By the late 1970s,
with increasing scarcity of land in Peninsular Malaysia, FELDA
began expanding its scope of activity to Sabah and Sarawak.

10. TABLE : L AND D EVELOP M E NT AND R EHAB I L ITAT ION BY F ED ER A L AND
S TATE A GENC IE S .
Agencies RMK 2 RMK 3 RMK 4 Total
1971-1975 1976 - 1980 1981-1985
FELCRA 23.6 27.1 31.1 81.8
RISDA 19.2 12.3 9.8 41.3
Others State 144.0 146.2 158.0 448.2
Agencies
Total 186.8 185.6 198.9 571.3

11. R&D A CTIVITIES
TA B L E : D E V E L O P M E N T A L L O C AT I O N F O R A G R I C U LT U R E
1 9 9 6 - 2 0 0 5 ( R M MILLION)
Programme/Subsector 7MP 8MP
Expenditure Allocation
New Land Development 475.9 274.2
Regional Development 807.0 570.1
In-situ Land Development 2941.9 2265.1
Forestry 143.8 225.2
Fishery 456.3 414.3
Livestock 176.3 127.5
Support Services 354.3 719.0
Irrigation and Flood Mitigation 1929.9 2170.2
Other programmes 844.9 1094.4
Total 8139.3 7860.0

12. TABLE : PUBLIC D EVELOP M E NT E XPEND I TU R E FOR
A GRICULT U R A L P ROGRA M M E S IN THE F IVE - YEAR
P LANS (R M BILLIO N )
Programme 1ST MP 2ND MP 3rd MP 4th MP 5th MP 6th MP 7th MP 8th MP
In-Situ 0.6 0.4 1.3 3.0 6.3 3.6 3.0 2.3
Land 0.4 1.0 2.7 3.9 4.4 2.7 0.5 0.3
Development
Other 0.1 0.3 0.6 1.6 1.0 2.1 4.6 5.3
Programmes
Total 1.1 1.7 4.6 8.5 11.7 8.4 8.1 7.9

13. A GRICULTURAL P ROGRAMMES
Agricultural Support Services
- Include R&D activities, marketing, agricultural credits,
training and institutional development programme.

14. TABLES : R & D AC TIVI TI E S BY VAR IO US AGEN C I E S .
Agencies R&D activities
PORIM -Breeding new high-yielding varieties
-Enhancing and diversifying palm oil utilization
-Improving production efficiency
-Promoting non-food applications of palm oil
RRIM - production of new forms of natural rubber
- New applications of rubber
-Increasing productivity through the improvement of labour saving
techniques
-Breeding new high-yielding clones with shorter maturity periods,
higher quality latex and rubber wood
MCB -Focus on cocoa processing
-Post-harvest technology
-End product development
MARDI -developing efficient farm management
-Developing processing technologies for food sector
-Breeding high-yielding and disease resistant varieties of paddy, durians,
pineapple and tobacco.

15. TABLES : R&D ACTIVITIES BY VARIOUS
AGENCIES .
Agencies R&D activities
MARDI -Introducing more modern and efficient
processing technologies
-Developing new method of packaging
-Diversification and commercialization of
agro-based industry
-Intensifing transfer of technology
FRIM -Focus on forest plantations
-Focus on energy from biomass
(agricultural waste)
-Developing wood processing technology
-New forest end products
-Developing fast-growing local species
that produce quality timber

16. A GRICULTURAL P ROGRAMMES
Marketing
- Are directed at consolidating traditional markets, penetrating new markets and
promoting product.
-Example , new markets for palm oil have been establish inALgeria, Brazil, Cuba etc.
-Rubber : traditional markets such as the United States and European Union were
consolidated through export promotion programmes.
-Rice : BERNAS is the body responsible for improving efficiency in the processing and
marketing of rice in the country.
-MCB : promotes cocoa in overseas markets. Its has strengthen traditional market such as
France, Germany and Netherlands and entered new markets such as the China.

17. A GRICULTURAL P ROGRAMMES
- FAMA
- Is responsible for securing markets base and looking at market potential for
local produce, particularly fruits and vegetables. Also promoted
horticultural products such as fruits amd flowers to East Asia, Europe and
the Middle East and South Africa. Beside that , provide an information to
the producer about market requirement and educate farmers how to plant,
sort, clean, grade and pack their product.
- Farmers’ market are the places where farmers can sell their produce
directly to buyers.
- FAMA also help local markets/farmers to market their product to
distribution centre. The product are repacked, graded and branded for
specific retailer and hypermarkets.

18. A GRICULTURAL P ROGRAMMES
Agricultural credits
- Bank Pertanian (BPM) provides agricultural credit to farmers
and fishermen to enable them to expand agricultural activities
as well as to venture into new areas while commercial bank and
finance companies give agricultural loans to plantation
companies.

19. A GRICULTURAL P ROGRAMMES
Training programmes
-are provided by several agricultural agencies such as LKIM, FOA,
FAMA and RRIM.
- The training programmes cover several areas such as agronomic
practices, farm management, marketing, post-harvest handling
processing and agribusiness, while extension services include new
agricultural technique and technologies to encourage more farmers
and fishermen to used new and modern technologies to increase
productivity.

20. A GRICULTURAL P ROGRAMMES
The Institutional Development Programme
- Include farmers’ organization, fishermen’s
associations and farmers’ cooperatives. They were
establish at national, state and local levels to
modernize the smallholder sector by encouraging
active participation of farmers and fishermen.

21. C ONTRIBUTION TO GDP
 The primary sector(agriculture, forestry and mining) made up
contribution at the year of independence was 45% in comparison to the
secondary sector’s(manufacturing and construction) 11%
 The share of the sector in the GDP decreased from 29.9% in 1970 to 22.9%
in 1980, 18.7% in 1990. Thus in 1999, the agricultural sector accounted for
9.4% of the GDP , 8.4% in 2000 and decreased further to 8.3% in 2005
 Despite the decline of agricultural contribution to GDP, its continues to
receive high priority in national development planning. The reason is
because hard-core poverty in this sector remains significant. Poverty
eradication encompasses an important issue in national development
progress. The agricultural sector is seen to be necessary or very important
in reducing the urban-rural disparity gap

22. C ONTRIBUTION TO E MPLOYMENT
 Agricultural has increased job opportunities and created alternative sources of
income. However, the total employment in the agricultural sector declined
over the years while those in manufacturing increased.
 Agriculture was a major source of employment, providing 15.69% of total
employment ,in 1998 and in 1999, 45.38% was rural based, of which 37% was
involved in agriculture. In 2000, 15.3% of total employment stated a 1423
thousand employee and tend to decrease in 2005(13.3%) and 2010(10.9%)
 These reduction in percentage of the workforce obviously that employment in
the agriculture sector contracted due to the increased use of labour-saving
technologies, thus causing labour shortage as local labour force moved into
economic sector for higher wages; the beginning of mechanization in the sector
and improved farm management
 The employment in this sector was expected to decline further due to low
rubber prices and scarcity of logging areas

23. C ONTRIBUTION TO THE I MPORT & E XPORT
 Agricultural is an important foreign exchange earner. Export earnings increased from RM
13.9 billion in 1985 to RM 35.4 billion in 1995. Total share in exports, declined from 36.7 to
19.2% in the same period
 Malaysia has a significant food import bill which rose to RM 13 billion in 2000 from RM 7.8
billion in 1995, owing to the depreciation of the Malaysian ringgit and changes in consumer
taste kilogramme, down from 319 sen a kilogramme in 1997
Palm Oil Rubber Paddy
•The major export earning •Dampening of rubber •Rice is the staple and security
comes from palm oil exports; prices worldwide has food crop of the country and the
comprised palm oil, palm resulted in an average price 3rd widely planted crop in
kernel oil, palm kernel cake, for all grades of rubber at Malaysia after palm oil and
oleo chemicals and finished 283 sen rubber
products exceeded RM 6.3 •High competition from
billion in 1993 to RM 12.89 imported rice causes problems
billion in 1997 to farmers since domestic
farmers (the cost of production
much higher than the
neighboring countries &
insufficient supply

24. Problem of Agricultural Sector
Increasing labor shortage, wages & cost of production as well as ageing farm labor &
preferences for non-farm jobs
a. Labor shortage resulted in large acreage of idle agricultural land
b. Cost of production which includes wages and inputs is relatively high compares to
countries like Thailand and Vietnam
c. The agricultural sector has become extremely dependent on foreign labor. In 2003, the
plantation sector employed 327490 registered foreign workers or about 23% of total
agriculture workforce. It is forecast the figures will increase as many Malaysians prefer
to work in other sector
Not enough R&D in food crops
Agricultural is very vulnerable to factors like changes in climate, disease and pest
infestation. In the case of large scale aquaculture, disease outbreaks will be a major
problem unless and until quality control, good management practices and disease
control are taken care of

25. Poor productivity and quality of agricultural Shrinking acreage of land under agriculture
product a. The agriculture sector competes with
other sectors for land when the economy
a. Slow pace of replanting. Malaysia palms that moves toward industrialization.
are more than 25 years will become less
productivity and hence increase cost of
harvesting. Replanting needs at least 5 years b. The cost of production of agricultural
before they can start producing yield. products in the neighboring countries is
cheaper, this would affect international
b. Traditional farming obviously yield lower demand for local agricultural products.
productivity and quality. Traditional farming Lower cost of land and labor of the
still makes up a bulk of our agricultural neighboring countries would force
sector. Malaysia to intensify on adding value to
their product output (better yield
Remedy / Solution: outcome).
i. Agricultural programs focus on
c. Thus the government should gradually
transforming traditional farming into
withdraw subsidies to promote
commercial farming to increase
efficiency and prepare for challenges of
productivity, competitiveness with
market globalization.
particular focus on commercialization
which includes marketing.
ii. Consolidate small farm via group-
farming concept

26. Relatively low growth rate (compared to Lacks investors & Attitude problems
other sector)
a. The agriculture sector in Malaysia lacks of
investors because it is risk venture due to the
A lack of capital impedes its rapid
perishable factor. As in the food processing
transformation, structural change and
sector, high capital investment is a constraint
integration with manufacturing. A slow
to investors.
rate of technological development and
innovation with regard to product b. The attitude of farmers has not been
development, process and packaging encouraging. For example, high-yield breeds
also contributed to low growth rate have been introduced to farmers but they tend
to neglect their farms and do not manage them
Export-oriented crops
Despite efforts to diversify, Malaysian
agriculture has remained predominantly
export-oriented. By 1990, about 70% of the
total cultivated agricultural area and 75% of
the gross crop out-put could be attributed to
the perennial export crops of rubber, palm oil
and cocoa

27. M EASURE TO R EDUCE THE A GRICULTURAL
P ROBLEMS
 Problems of land size : smallholders are encouraged to practice
group farming by consolidating individual plots into a single farm.
 Increase food prodcution : systematic and integrated approach
(similar to rubber and palm oil plantation) should be created for
other food crops and more should be allocated for R&D in food
crops. Encourage large scale and organized farming, intensifying
land used, improving agronomic practices, as well as using modern
technologies and management.
 Encourage successful farming and to overcome the
problems of ageing small scale farmers: DOA has
introduced the Incubation Programme to create a group of
young, skilled and motivated entrepreneurs.

28. M EASURE TO R EDUCE THE A GRICULTURAL
P ROBLEMS
 Increase rate of development in rural areas : to discourage rural
youth from migrating to urban areas for better paying jobs. They can
also have additional sources of income. Production of primary
commodities will be reoriented to improve productivity and
competitiveness through integrated programme with livestock, wider
crop practices and mechanization (foreign workers should be a short-
term measure.
 To achieved a positive balanced of trade and reduced
food import and increased export : by producing more
food not only from the fruits and vegetables sub-sector but
also the livestock and fisheries sub-sectors. Promoted the
production of natural products such as medical plants as
well as non-forest products such as herbs and aloevera as
new sources of growth for local and export markets.

29. M EASURE TO R EDUCE THE A GRICULTURAL
P ROBLEMS
 Encourage private sector investment : introduced several
incentives example, by encouraging the production of quality
and safe product through the scheme called the Farm
Accreditation Scheme Malaysia or Skim Akreditasi Ladang
Malaysia (SALM). The DOA is working towards making the
SALM certification acceptable to importing countries.

30. FAMA (Federal Agricultural marketing Authority)
 Was formed in 30 September 1965, to monitor, coordinate, control and develop product
marketing of Malaysian agriculture, including import and export
 Agricultural products under FAMA service's field are vegetables, fruits, grain and
herbal, livestock and aquaculture
 Functions:
• Coordinate agriculture marketing activity both in private sector or department /
government agency
• Improve marketing system and expand new market of Malaysian agriculture
development
• Collaborating with private sector and department / government agency to create
efficient and effective agriculture marketing system
• Develop an efficient management in agriculture industry, marketing activity or
agricultural products processing
• Involve directly in agriculture industry, especially in marketing activity and
products processing.

31. FELCRA (Federal land Consolidation & LKIM (Fisheries Development Authority of
Rehabilitation Authority) Malaysia)
 Establish in 1966
 Its objective is to develop rural sector by helping  Is an authorized body under the Ministry of
its community to participate in national Agriculture and Agriculture Base Industry
economic activities, thus improving their that was incorporated under Act 49,
standard of living Malaysia Fisheries Development Board act
 Since September 1st,1997, FELCRA is known as 1971
FELCRA Berhad due to its corporatization. It is
no longer a Statutory body but has becomes a  This act took effect on all states within
fully Government owned company. Peninsular Malaysia on November 1st 1971; in
Sarawak on July 1st 1973 and in Sabah on
 With the change of its corporate entity,
August 1st 1995
FELCRA now able explore new business
opportunities, in line with national development
 2 main objectives:
aspiration
 Armed with plantation management and core 1. The first was to raise the income levels
activities skills, FELCRA is now diversifying its of fishermen
activities into industrial and service sectors as
well as other growing business areas 2. Secondly, to develop and expand the
fisheries industry, including deep-sea
fishing, processing and marketing.

32. MADA (Muda Agricultural Development Authority)
 Establish on Jun 30th 1970
 Was born under an emergency decree with the initial Bahasa Malaysia name “Pihak Berkuasa
Kemajuan Pertanian Muda”.
 Its inauguration was officiated by the late Tun Hj. Abdul Razak Hussein who was the acting
Prime Minister of Malaysia as well as the acting Director of Operations in a ceremony at the
Balai Besar Building in Alor Star, Kedah Darul Aman.
 The formation of MADA was approved by Parliament under Act No. 70, the Muda
Agricultural Development Authority Act, 1972. Under this Act, the duties of MADA were
outlined as follows:-
 To improve, encourage, assist and manage economic development projects in the Muda
area, and to plan and manage within the Muda area all agricultural development as
assigned to it by the State Governments of Kedah and Perlis.
 Two main objectives were set by MADA based on the aspects of human development and
commodity. The objectives were:-
 To improve the socio-economic well being of a large portion of the rural population
 To increase the rice production for national requirements.

33. Rubber Research Institute of Malaysia (RRIM) FRIM (Forest Research Institute Malaysia)
 One of the leading institutions in tropical
 Is the custodian of the rubber industry in forestry research, both within the country
Malaysia and abroad
 Established on 1st January 1998, it has  Founded by British colonial forest
under its fold three well establish agencies scientist in 1929, the former Forest
(RRIM, MRRDB & MRELB), which are Research Institute with Dr. F.W.
now merged into one, which have Foxworthy as its first chief research
contributed significantly to the officer, became a statutory body governed
development of the rubber industry for by the Malaysia Forestry Research and
the last 78 years Development Board under the Ministry of
Primary Industries in 1985 and then in
 The primary objectives is to assist in the 2004, FRIM became a statutory body
development and modernization of the governed under Ministry of Natural
Malaysian rubber industry in all aspects Resources and Environment
from cultivation of the rubber tree, the  Promote sustainable management and
extraction and processing of its raw optimal use of forest resources by
rubber, the manufacture of rubber generating knowledge and technology
products and the marketing of rubber and through research, development and
rubber products application

34. FELDA (Federal Land Development Authority)
MCB (Malaysian Cocoa Board)
 Established on 1 July 1956 under the Land • The Act for the establishment of the MCB
Development Ordinance was passed by Parliament in July 1988 and
was gazette as ACT 343 on 8 September,
 It‟s functions provided under the Act 1988. MCB was officially in operation on 18
(Amendment 1991) are as follows:
July, 1989.
- Carry out and implement land • The Malaysian Cocoa Board (MCB) is a
development projects federal statutory research and development
agency under the Ministry of Plantation
- Promote, facilitate and undertake the Industries and Commodities.
development, management and • The main objective is to develop the cocoa
economic, social, agriculture, industry in Malaysia to be well integrated
settlements, industrial and commercial
and competitive in the global market.
as well as other ancillary activities in
the areas where authorized Felda land • The main functions cover:
development projects or areas owned - To conduct and promote research on
by Felda and the company. production, processing, storage and
consumption;
 Starting in April 2004, Felda is placed under - To conduct and coordinate activities and
the Prime Minister and Minister responsible policies on research;
for the Felda is Dato 'Sri Mohd Najib Tun - To improve quality;
Abdul Razak, the Prime Minister of Malaysia - To regulate marketing activities;

35. Malaysia Agricultural Research & Development Institute (MARDI)
 Established at the early establishment 1971-1972
 With the main objectives of generating and promoting new, appropriate and efficient
technologies towards the advancement of the food, agriculture, food and agro-based industries
 Managed and guided by the regulations and policies set by the MARDI Governing Board and
consented by the Minister of Agriculture And Agro-Based Industry. In matters pertaining to
finance the consensus of the Minister of Finance is also obligatory
 Whereas, the Scientific Council ensures that MARDI technical programs attain the highest
quality and level of competence
 Fulfill with the functions:
 To conduct researches in the fields of science, technical, economy, and social with
regards to Production, utilization and processing of all crops (except rubber, oil palm and
cocoa), livestock and food and also Integrated farming
 Provision of various forms of trainings to cater for the development of the food,
agriculture and agro-based industry
 To conduct commercial research and production
 To develop, promote and exploit the research findings
 To provide extension services to the agriculture, food and agro-based industries

36. National Policy
Green Book Strategy
 Introduced by 2nd Prime Minister, Tun Abdul Razak Hussein on Dec 20, 1974
which in based concept of „backyard farming‟
 As one of the strategies under Food Security Policy involving a total allocation
of RM 4 billion to ensure adequate food supply and stable food prices
 Emphasized more on greater involvement by the people in agriculture and
vegetable farming for their own consumption while the rest will be sold to the
public
 Main objective is to maximize land development involving short-term crops,
group farming, breeding of fresh water fish and enhancing the marketing of
agricultural product beside increasing national food production and raising the
people‟s income to reduce inflation

37. •Was introduced in 1984 to
modernized & revitalized the Objectives:
agriculture sector, to lesson •The maximization of income
poverty & raise efficiency through optimal utilization of
•Focus on expansionary resources in the sector
policy on export crop i.e. oil •Increase the food production for
palm & cocoa local market such as paddy,
vegetables, fruits & poultry
Main strategies involved (land development, In-situ
development, support services)
Strategies:
•Government invested heavily on institutional building
• new land developments for oil palm & cocoa
(by Felda, Risda, Felcra)
• in-situ development to resolve uneconomic farm size
& low productivity among small holders (aimed to
improve productivity in existing agricultural areas by
providing infrastructure and other services)

38. Objectives: Strategies:
•The maximization of income 1. Optimization of resource utilization was
through optimal utilization of
•Was introduced in 1992 encourage to diversify out of export
resources in the sector
•It was undertaken as crop cultivation into other activities
•Increase the food production
Malaysia’s Vision 2020 for local market such as
which introduced in 1990 paddy, vegetables, fruits & 2. Acceleration of Agro-based industrial
•This policy encouraged poultry development which generate more off-
alternatives use of farm opportunities for smallholder to
agricultural land for earn additional income
higher value added
activities 3. Enhancement of R&D are needed to
•It was market oriented, overcome the production process,
commercialized, efficient, labor and other constraint in the
competitive & dynamic agriculture
4. Greater participation of private sector were
Emphasis of NAP 2 needed in order to transform the
agriculture sector into a competitive
♦ To further strengthen and enable agriculture sector to
contribute substantially to the economic growth of the and efficient sector
nation
♦ Increasing productivity, efficiency & competitiveness 5. Human resource development is a key
♦ Increasing land areas for palm oil (plantation crop) strategies to achieve increased
productivity and output of both labor
♦ Development of agro-based industry
and land
♦ Acceleration the transformation of the sector into a
dynamic and commercialized sector

39. Strategies:
•Continued NAP 2 The Agro-Forestry
•Takes into account the 1997-1998 Approach
Asian Financial Crisis & the
liberalization of the financial market •Aimed to tackle the problem of
•Concerned on: resource constraints(land & labour)
- Food security and focuses on sustainable
agricultural development
-Increase productivity &
competitiveness
•Agriculture and forestry are viewed
-Inflation as mutually compatible and
- Private sector investment complementary
- Enhance export of domestic food
production Product-based •Aimed to create a large production
-Deepen linkages with other Approach
base for both sector
sectors •Is adopted to reinforce and
-Reduce dependency on imports complement the cluster-based
-Venture into frontier areas as agro-industrial development
well as utilize natural resources
efficiency •Identified in the 2nd Industrial
Plan (1996-2005)
i.e. processed (halal) food from
livestock industry, juices and
cocktails from fruits or salad
dressing from oil palm