Malaysian Agriculture

In the new era of 21st century, agriculture faces multiple challenges that is; it has to produce more food and fibre to feed a growing population with a smaller rural labour force, more feedstock for a potentially huge bio energy market, contribute to overall development in the many agriculture-dependent developing countries, adopt more efficient and sustainable production methods and adapt to climate change. With the new and advance technologies that invented, agriculture sector can increase its efficiency with the right formulation of model. As we know, agriculture is the primary sector in Malaysia back in 1960s and 1970s. But the evolution of industrialization has change Malaysia to be a manufacturing nation started around the 1980s. But still agriculture plays important role in term of reducing poverty especially in the rural area (Cervantes-Godoy and Dewbre, 2010). Meijerink (2007) also agree with Cervantes-Godoy and Dewbre in poverty reduction by focusing to agriculture sector. He also added some other points in term of providing food to the domestic demand and also produces the primary commodities in expanding business. In the chapter 15 of Economic Transformation Programme (ETP) that was introduced by the government in 2010, the GDP of agriculture sector was aimed to be double by expanding the production of high value item. This is due to the demand for agriculture product is expanding rapidly and there are many niches that Malaysia can exploit as we got the natural resources advantages. It is also expected to increase the farmer income more than double under this Economic Transformation Programme.

There are two diversion of agriculture in Malaysia that can be characterized by two distinct sectors, namely, the plantation sector and the smallholders’ sector. The major crops that planted are palm oil, rubber, paddy and cocoa. In the late 1960s and early 1970s, agricultural sector development was important to the overall economic development of the country. This sector contributed to one third of the Gross Domestic Product (GDP) provided for half of the total employment and 50% of the foreign exchange earnings. In 1970, the agriculture sector posted a growth of 8%. This achievement was the result of the First Malaysian Plan 5 policies for more and better skilled agriculture workers. The first Malaysian Plan (1MP) also aimed to stimulate the adoption of modern and better farming practices and patterns, and encourage crop diversification, by the agriculture community.

These policies resulted in increased food production as farmers became more skilled and improved practices, such as double-cropping for paddy. Local rice production saw a growth of 11.9% a year during the first MP. The Federal Land Rehabilitation and Consolidation Authority (FELCRA) was established in 1966 to alienate and develop land, especially idle land, for agriculture purposes. Subsequently, 18 fringe alienation schemes, comprising 15,000 acres and 2,400 participants,