Following the COVID-19 outbreak, the Russia-Ukraine conflict, and climate change, access to inexpensive and nourishing food is becoming increasingly challenging worldwide. As a result, this crisis has elevated Malaysia’s food security to the top of the list of national issues.
With a high reliance on imports for basic food items, Malaysia is presently placed 41st on the Global Security Food Index (GSFI) after emerging from the pandemic.
Economist Dr Nungsari Ahmad Radhi said Malaysia’s performance ought to be far better than this. Because of the country’s weak agro-food sector, Malaysia imports a lot of food.
When compared to exports of RM44.61 billion in 2022, Malaysia’s agro-food imports totalled RM74.71 billion.
Food imports, notably those of onions, dairy products, coffee, wheat flour, tea, shallots, potatoes, and cooking oil, are necessary to satisfy the needs and demands of the nation’s customers, according to the Department of Statistics Malaysia (DoSM).
The importance of food system resilience
In the face of COVID-19 but also for other types of unfavourable events that are typically observed to have significant effects on food systems and their actors, such as extreme weather-related events (drought, flood, natural disasters), economic or political crises (trade bans, economic collapses), etc., local food system resilience is important.
Food system resilience is the capacity of the food system to continue producing sufficient, secure and nutritional food in the face of challenges like natural disasters or economic shocks.
According to the Minister of Agriculture and Food Security (MAFS), Datuk Seri Mohamad Sabu, the government’s commitment to advancing the agro-food industry as a sustainable, resilient, and high-tech sector is demonstrated by the allocation of RM5.39 billion received through Budget 2023.
In ensuring local food system resilience, the Federal Agricultural Marketing Authority (FAMA), which works as a buyer and is responsible for ensuring the availability of markets based on crop type, variety, quality, grade, as well as packaging and production schedule, is in charge of leading the execution of the Contract Farming Programme.
The Contract Farming Programme’s primary focus is on Malaysia’s native fruits and vegetables, and it seeks to guarantee a sufficient supply to fulfil market demand. The programme is primarily for domestic production, with 90 million units produced under the programme alone.
While FAMA is not directly involved in production activities, it facilitates the programme to match participants’ supply with market demand, ensuring the supply of food.
It takes into consideration all associated operations throughout the supply chain of agricultural output, such as post-harvest facilities and support services, which include the collecting and grading facility.
Besides, FAMA intervenes to control price increases by offering alternatives and reducing the supply chain while continuously monitoring market and supply circumstances.
This is important, particularly due to the post-COVID-19 pandemic conditions and import challenges; for example, it was impossible for animal feeds like maize and grain to enter our nation.
Since FAMA plays a role in ensuring holistic food security and food resilience, it also collaborates with other agencies under MAFS.
Innovation and cutting-edge technology
In fact, MAFS targets increased exports of fruits to a number of other nations this year. Malaysia is aiming to increase exports of fruits, including the durian and MD2 pineapple, to nations like China, Australia, and New Zealand, which will help increase export revenue.
With the aid of the Contract Farming Programme, FAMA wants to increase farmers’ earnings, improve the quality of fruits and vegetables, fulfil consumer demand, promote technical transfer across the supply chain and, most significantly, increase the resilience of the local food system.
In addition, the government encourages innovation and the application of cutting-edge technology in company operations through the Ministry of Agriculture and Food Industries, which increases profitability and yields more efficient, resilient, and sustainable agricultural production techniques.
FAMA also acknowledged the use of Internet of Things (IoT) technology but emphasised that cutting-edge solutions can raise capital and operating costs.
In line with SDG 2, – Zero Hunger, which aims to end all forms of hunger and malnutrition by 2030, investors can help contribute to the sustainability of Malaysia’s food ecosystem by modernising the agro-food industry through the use of automation and technology-driven concepts like ‘smart farming’ or ‘precision agriculture’.
Professor Dr Suhaiza Hanim Mohamad Zailani is the Director of the Ungku Aziz Centre for Development Studies, Universiti of Malaya.
