The Ministry of Agriculture and Industries has a major mandate in ensuring the national food security agenda is upheld and improved under the Budget 2023 allocation. MAFI through its various agencies and successful programs it had initiated in 2022 like the ‘Smart Sawah Berskala Besar’ will be further expanded next year.
Basically, MAFI’s focus for Budget 2023 will be translated through several initiatives which the Ministry has given emphasis like the Agrovest investment program by Agrobank which is aimed to provide start-up funds to modern technology agricultural start-ups with RM250 million in funds including Special assistance to rice farmers at a rate of RM200 per month for a period of three months or seasonally to 240,000 farmers with an allocation of RM228 million.
Additionally, there will be also implementation of various initiatives like the development of agro-food sustainability with an allocation of RM56 million such as livestock feed production by using black soldier fly and the introduction of an Agricultural Protection Scheme to protect agricultural entrepreneurs from any out-of-control risks such as weather, disease, and pests starting with rice paddies. MAFI will also look at extending the tax incentive period for food production projects up to the end of 2025, especially in areas of projects that involve modern agriculture systems based on Controlled Environment Agriculture.
In addition to these initiatives, there are also several other initiatives that support the national food security agenda, among them is Bank Negara Malaysia’s Agrofood Financing Scheme with funds amounting to RM1 billion given at the rate of 3.5%. Then there is the Government Loan Fund of RM10 billion through BNM to small companies and moderate in particular to encourage automation and digitisation activities as well as supporting the food security agenda. Financing guarantee of up to RM9 billion for SMEs by SJPP and GLC and GLIC investment in food security projects amounting to RM1.35 billion, investment of RM200 million under the Impact Fund by Khazanah.
Revolving Capital Fund of RM100 million under the Cooperative Commission Malaysia is available to provide financing for cooperatives to expand into the agro-food industry. Businesses can enjoy full tax exemption on capital expenditure that drives productivity and improve efficiency, especially in the agricultural sector by embracing automation, IR4.0 adaptation as well as the implementation of a closed-loop system. Extension of tax incentives for companies with BioNexus status until the end of 2024 and the allocation of RM80 million for self-sustaining dairy products for the Dairy Farm Project in Chuping, Perlis.
There are also short-term food crop allocations of RM40 million under the Agroprison Program to expand agricultural and plantation activities involving 70 hectares of prison land with an allocation amounting to RM10 million Program to optimise the use of abandoned lands owned by FELDA FELCRA and RISDA and agencies under MAFI with an area of up to 800 acres to cultivate food crops;
Under the extreme poverty eradication program, low self-sufficiency level food crops such as chili, ginger, and cabbage will be thought to grow to selected households through assistance including training, start-up capital, agricultural incentives, marketing, and digitiaation.
In efforts to get connectivity from farms to markets, MAFI’s Grants for State Road Maintenance (MARRIS) has been increased to RM5.2 billion with the agency’s scope expanded to include road maintenance work for agriculture in states under the supervision of the agricultural development board.
