In order to ensure the continuity of the country’s food security, the Ministry of Agriculture and Food Industry (MAFI) continues to implement various efforts to meet the needs of the people, who are expected to increase by more than 45 million people by 2050. Food as a basic need needs to be given attention to ensure that the economic and social development of a country remains progressive and competitive.
The Ministry of Agriculture and Food Industry (MAFI) has implemented various efforts related to policies, sectoral action plans, subsidies, incentives, financing, regulatory amendments, and Bills in Parliament.
Caretaker minister Datuk Seri Dr. Ronald Kiandee said MAFI has introduced the National Agro-Food Policy 2021-2030 (DAN 2.0), the Cabinet Committee on National Food Security Policy (FSCC), and the Food Security Policy Action Plan 2021-2025.
DAN 2.0 is a comprehensive policy to ensure the country’s food security is competitive and sustainable based on the government’s main policies, namely the Shared Prosperity Vision 2030, the Sustainable Development Agenda 2030, and the 12th Malaysia Plan (RMK12).
DAN 2.0 is also a continuation of DAN 2011-2020 which supports the development of agro-food commodities as well as food security.
Some of the benefits obtained from DAN 2.0 include the contribution of the agro-food sector to Malaysia’s Gross Domestic Product (GDP) which is expected to increase to five percent in 2030, which is the final year of the implementation of this policy.
As for the level of self-sufficiency (SSL), the supply of the country’s staple food, namely rice, is expected to increase from 63 to 80 percent.
According to Ronald, MAFI has started an early step through the implementation of the Large-Scale Smart Sawah Program (SMART SBB) on 150,000 hectares of the country’s rice granary area with the target of increasing the average yield per hectare from 3.5 to 7.0 metric tons during RMK12.
For the livestock industry, the main goal is to increase the SSL of beef to 50 percent and fresh milk to 100 percent to reduce import dependency.
Meanwhile, for the fishing and aquaculture industry, the goal is to overcome the problem of reducing fishing resources and increase the SSL of fish resources from 90 to 98 percent and the income level of fishermen from RM2,000 to RM2,724 to RM5,500.
The DAN 2.0 approach aims to place modernization and smart agriculture as a ‘key game changer’ and the core focus of the main policy to successfully transform the agro-food sector into a sustainable, resilient and high-tech sector.
The establishment of the second policy committee involves the Cabinet Committee on National Food Security Policy (FSCC) chaired by the Prime Minister and composed of ministers and agencies involved.
It is responsible for formulating a holistic and sustainable national food security policy to ensure that food security issues are properly addressed.
This committee is assisted by the Executive Committee on National Food Security Policy which acts as a ‘coordinating committee’ and is chaired by the MAFI Minister.
The third policy is the National Food Security Policy Action Plan (DSMN Action Plan) 2021-2025, to strengthen national food security by taking into account issues and challenges along the food supply chain starting from agricultural inputs to food waste.
There are several strategies outlined under the DSMN Action Plan 2021-2025, among them, expanding the adaptation of technology in the food system to increase efficiency and productivity based on the economic scale and sustainable agriculture.
Another strategy is to empower research and development based on food security to increase food production capacity and agricultural inputs.
Nowadays, the country is able to produce almost all the basic foodstuffs needed. As a guarantee of supply, the ministry emphasised increasing the production of eight basic food items and continuously monitoring the supply status for the people’s needs.
IMPLEMENTATION OF THREE MAIN POLICIES
National Agro-Food Policy 2021-2030 (DAN 2.0)
Ensuring the country’s food security is competitive and sustainable through the Shared Prosperity Vision 2030, Sustainable Development Agenda 2030 and RMK12.
The continuation of DAN 2011-2020 supports the development of agro-food commodities as well as food security.
Cabinet Committee on National Food Security Policy (FSCC)
Chaired by the Prime Minister and composed of ministers and agencies involved.
Play a role in formulating a holistic and sustainable national food security policy and all issues are well addressed.
Food Security Policy Action Plan 2021-2025
To strengthen the country’s food security in terms of issues and challenges along the food supply chain starting from agricultural inputs to food waste.
Ensuring the food system remains intact at all times, especially in the face of unexpected situations.
Implementation of the Sectoral Action Plan
The Sectoral Action Plan is divided into three, namely crops, fisheries and animal husbandry. For crops, the ministry introduced SMART SBB, which is a smart collaboration program between the government and leading companies involving a rice planting area of 150,000 hectares per season for the first phase in stages in Peninsular Malaysia.
SMART SBB is able to reduce the government’s financial responsibility in terms of subsidized agricultural inputs in the long term, involving industry players in almost the entire industry chain, reducing the cost of planting, rice management and rice paddy income.
This approach also helps the reorganization of industry players more systematically, especially in eliminating the involvement of middlemen who create a gap between rice farmers, rice production and marketing.
To date, a total of 27 leading companies have participated in this program in 10 states involving nearly 5,000 farmers with an area of over 11,000 hectares.
Another plan is the Setting of the Ceiling Price of Legal Rice Seed (BPS) for a maximum legal rice seed price of RM35 for every 20 kilograms (kg) effective from the first cropping season, January 2021.
It also opens up more opportunities for rice farmers to produce legal rice seeds including Regional Farmers’ Associations (PPK), and government-related and private companies in addition to benefiting approximately 320,000 rice farmers throughout the Peninsula.
For fisheries, MAFI provides a contribution facility in the Social Security Organization (Socso) through the Self-Employed Social Security Scheme for Fishermen.
A total of 42,000 fishermen are allowed to contribute to the Socso scheme in accordance with the Self-Employed Social Security Socso Act 2017 (Act 789) which is taken from the Fishermen’s Subsistence Allowance.
The government through MAFI also increased the Sea Fisherman’s Subsistence Allowance from RM250 to RM300 per month starting in 2021 involving an allocation of RM151 million.
The Inland Fisherman’s Livelihood Allowance was also increased from RM200 to RM250 which benefited 3,400 fishermen.
For animal husbandry, among the plans implemented is the launch of the Strategic Plan for the Development of the National Meat Industry 2021-2025 and the National Dairy Industry to increase the SSL of fresh meat and milk production in the country.
Through this plan, the local fresh meat and milk production target can be increased to reach 50 percent SSL for meat production by 2025.
The National Ruminant Board (LRN) will be established to boost the growth of the ruminant industry in strengthening the country’s meat and dairy production.
The drafting of the bill for the establishment of the LRN is also in the final draft stage and is expected to be tabled for the first reading in Parliament in the July, 2023 session.
The government also strengthened the bird’s nest industry by encouraging the production of value-added and downstream products between RM14,500 to RM40,000 per kg of bird’s nest.
MAFI is promoting the swallow nest premises registration system program which is one of the conditions for its export to China.
Allocation of RM150 million for fishermen
MAFI allocated as much as RM150 million for financing facilities under the Vessel Modernization and Catch Mechanization Program for Vessels Zone A, Zone B as well as expanded to Zone C and Zone C2.
It opens up opportunities for local fishermen to upgrade and modernize their vessels from the aspect of safety and improving the quality of the catch.
The implementation of the Malaysian Family Agro-Food Financing Fund (DPAKM) under Agrobank involving an allocation of RM800 million was also given to ensure the continuity of food production activities.
Through it, the maximum funding limit for poultry, ruminant and vegetable crops is set at up to RM5 million.
The maximum funding limit for micro, new and young micro-entrepreneurs is up to RM500,000 in addition to the funding period for DPAKM up to 8.5 years, including a six-month moratorium that will be offered to all target groups.
Agrofood Takaful Protection Scheme
A protection scheme in collaboration with Agrobank was created based on sharia principles, the Agrofood Takaful Protection Scheme.
The first phase involved a protection scheme for rice farmers totaling 189,500 people and expanded with the involvement of the fisheries, crops, livestock and food industry sub-sectors.
It also provides appropriate compensation to the groups involved including the small-scale B40 group.
Subsidy for chicken farmers, chicken egg producers
On October 7, the government agreed that subsidies to chicken farmers and egg producers will continue from October to December 2022 at a rate of 80 cents per kilogram for chickens and 8 cents per egg for eggs.
This decision takes into account the ceiling price of standard chicken at the retail level has been maintained at the rate of RM9.40 per kilogram and the ceiling price of grade A, B and C chicken eggs at the retail level has been maintained at the rate of 45 sen, 43 sen and 41 sen per egg respectively in the Peninsula Malaysia.
On November 1, the government increased the subsidy for grade A, B, and C chicken eggs from 8 cents to 10 cents to increase production, ease the burden of farmers’ costs and the people can get them at a reasonable price.
The Ruminant Livestock and Poultry Sustenance Scheme were created with an allocation of RM30 million which benefited 374 farmers with an aid value of RM5.06 million in 2022.
Amendment of Regulations and Bills in Parliament
The amendment of the Farmers’ Organization Regulations 2021 to strengthen the role of the National Farmers’ Organization (Nafas) and the Farmers’ Organization is done to return the right to vote to farmer members in the election of Board of Directors (AJP) members.
The Federal Agricultural Marketing Board (Amendment) Bill 2022 was also implemented by the ministry. Also amended is the Rice and Rice Control (Amendment) Bill 2022 (Act 552) to increase the level of rice regulatory enforcement.
MAFI also facilitated the import procedures (IP) of the Department of Quarantine and Inspection Services Malaysia (Maqis) on four commodities by delaying permit fees and creating a ‘priority lane’ for a fast entry process.
