The Ministry of Agriculture and Food Industries (MAFI) is working on policy models that can be created with the assistance of insurance players including private insurance players.
The implementation of the insurance scheme would be in line with the government’s intent to industrialise the agriculture and agrofood sectors in the country, especially the paddy industry through the Large-Scale Smart Field (SMART SBB) programme.
“MAFI will definitely involve the private players as other agricultural countries are already doing it. Currently, there are no agriculture insurance schemes in Malaysia and we aim to launch that as soon as possible not just in paddy but also in other agriculture activities,” MAFI Minister, Ronald Kiandee told BusinessToday.
Kiandee is confident that its suggestion of an insurance scheme for agriculture and agrofood industry players will be released soon, thanks to the assistance from insurance companies in the country.
“The insurance policy model was being developed by Bank Pertanian Malaysia Berhad (Agrobank) in collaboration with the Malaysian Agricultural Research and Development Institute (MARDI) and insurance providers,” he added.
Additionally, the SMART SBB programme will help achieve the National Rice Self Sufficient Level (SSL) target that has been set during the Twelfth Malaysia Plan (12MP) by 75 percent.
MAFI assured that the programme will open opportunities for companies to play a role at any level of the value chain of the paddy and rice industry after the Covid-19 outbreak.
“With SMART SBB, farmers can carry less of the risks and cost of paddy cultivation thus improving the income margin of the farmers,” he commented during the press conference after the launch.