Malaysian Economics: The adequacy of food self-sufficiency.

 11. Discuss the measures need to be taken by the government to ensure the adequacy of food self-sufficiency in Malaysia.

    Malaysia is one of the countries that export agro-food abroad, for example, the export of raw cocoa beans to Peru.  Hence, the government needs to ensure the adequacy of food self-sufficiency in their own country.  The Ministry of Agriculture and Food Industry (MAFI) plays an important role in ensuring the sustainability of the food supply in Malaysia.

    The government must allocate special funds for modern farmers and ranchers, such as the Food Security Fund.  This incentive will allow the government to provide modern farmers and fishers with a myriad of services, including agricultural input aid to boost domestic production.  Through this fund, the government can implement relevant programs to facilitate access to financing for entrepreneurs across the agro-food value chain with attractive and low-risk financing rates.  For instance, the Vessel Modernization and Catch Mechanization Program can open opportunities for local fishermen to upgrade and modernise vessels regarding safety and improvement of catch quality.

    Meanwhile, entrepreneurs along the agro-food value chain can obtain financing facilities for the procurement of equipment and technology based on the Industrial Revolution 4.0 (IR 4.0), amounting to RM1 million at 3.5 per cent per annum for a period of up to 10 years through the Agro-Food Value Chain Modernization Program.  Among the important technologies for entrepreneurs are the IR 4.0-based technology, which is the focus in the agro-food sector, including sensor technology, robotics, drones and blockchain, which is an element of the concept of smart agriculture.

    Furthermore, the government should also provide incentives in the form of tax deductions to investor companies to increase food production in the country.  The fiscal incentives offered can attract participation and increase private investment in the agro-food industry.  Company tax exemption can also be given to companies implementing Approved Foodstuff Production Projects.

    Next, the government, through MAFI, must provide facilities and incentives to foreign investors interested in investing in the agro-food sector in Malaysia.  Foreign investment in the Malaysian agro-food industry is one of the ways that foreign investors can help expand agricultural product production by transferring technology, skills, and finance.

    MAFI serves as a facilitator, engaging investors with the appropriate parties to provide consulting services on technical needs, regulatory compliance, business matching, and other associated concerns.  MAFI will also identify possible investment areas in each state and relevant commodities to investigate in partnership with the state governments.  Every prospective investor must prepare a detailed investment plan emphasising the investment's influence on the country's agro-food sector.

    Following that, the government must put in place strategies to improve the Sustainable Food Supply.  Malaysia will need to restore the National Food Store Project in the future.  As a result, they must redevelop their domestic agricultural sector.  In addition, the government should restore UPM's status as the country's primary leader in modern agriculture, alongside other relevant institutions of higher learning.  As a result, the government must make effective use of this resource.  Simultaneously, the government should promote significant national corporations, such as GLCs, to invest in promising agricultural and livestock-producing countries.  As we are aware, they are not only limited to the oil palm plantation industry.  Malaysian GLCs can invest in paddy farming, poultry, cattle, and other areas where investment rates are cheaper in some countries than in Malaysia. Since agriculture is a very profitable company, Malaysia should consider becoming not just a National Food Store, but also an Asian or World Food Store.

    Finally, steps to improve domestic supply should be considered.  This steps may enable farmers, ranchers, and fishers regardless big, medium, or small enterprises to enhance production, the government, through appropriate ministries, must speed a package of financial aid and expertise to them.  Agencies involved in agriculture, livestock, and fisheries must work cooperatively to achieve this objective in terms of research, yield enhancement, and marketing.

    To conclude, lack of food supply will cause world food prices increased dramatically and could provoke a crisis that had a negative impact on political stability and the security of a country.  Therefore, to overcome this food shortage problem, every country needs to have an effective food security.

ANSWER 2:

Malaysia is one of the countries that export agro-food abroad, for example, the export of raw cocoa beans to Peru.  Hence, the government needs to ensure the adequacy of food self-sufficiency in their own country.  The Ministry of Agriculture and Food Industry (MAFI) plays an important role in ensuring the sustainability of the food supply in Malaysia.

The government must allocate special funds for modern farmers and ranchers, such as the Food Security Fund.  This incentive will allow the government to provide modern farmers and fishers with a myriad of services, including agricultural input aid to boost domestic production.  Through this fund, the government can implement relevant programs to facilitate access to financing for entrepreneurs across the agro-food value chain with attractive and low-risk financing rates.  For instance, the Vessel Modernization and Catch Mechanization Program can open opportunities for local fishermen to upgrade and modernise vessels regarding safety and improvement of catch quality.

Meanwhile, entrepreneurs along the agro-food value chain can obtain financing facilities for the procurement of equipment and technology based on the Industrial Revolution 4.0 (IR 4.0), amounting to RM1 million at 3.5 per cent per annum for a period of up to 10 years through the Agro-Food Value Chain Modernization Program.  Among the important technologies for entrepreneurs is the IR 4.0-based technology, which is the focus in the agro-food sector, including sensor technology, robotics, drones and blockchain, which is an element of the concept of smart agriculture.

Furthermore, the government should also provide incentives in the form of tax deductions to investor companies to increase food production in the country.  The fiscal incentives offered can attract participation and increase private investment in the agro-food industry.  Company tax exemption can also be given to companies implementing Approved Foodstuff Production Projects.

Next, the government, through MAFI, must provide facilities and incentives to foreign investors interested in investing in the agro-food sector in Malaysia.  Foreign investment in the Malaysian agro-food industry is one of the ways that foreign investors can help expand agricultural product production by transferring technology, skills, and finance.

MAFI serves as a facilitator, engaging investors with the appropriate parties to provide consulting services on technical needs, regulatory compliance, business matching, and other associated concerns.  MAFI will also identify possible investment areas in each state and relevant commodities to investigate in partnership with the state governments.  Every prospective investor must prepare a detailed investment plan emphasising the investment's influence on the country's agro-food sector.

Following that, the government must put in place strategies to improve the Sustainable Food Supply.  Malaysia will need to restore the National Food Store Project in the future.  As a result, they must redevelop their domestic agricultural sector.  In addition, the government should restore UPM's status as the country's primary leader in modern agriculture, alongside other relevant institutions of higher learning.  As a result, the government must make effective use of this resource.  Simultaneously, the government should promote significant national corporations, such as GLCs, to invest in promising agricultural and livestock-producing countries.  As we are aware, they are not only limited to the oil palm plantation industry.  Malaysian GLCs can invest in paddy farming, poultry, cattle, and other areas where investment rates are cheaper in some countries than in Malaysia. Since agriculture is a very profitable company, Malaysia should consider becoming not just a National Food Store, but also an Asian or World Food Store.

Finally, steps to improve domestic supply should be considered.  This steps may enable farmers, ranchers, and fishers regardless big, medium, or small enterprises to enhance production, the government, through appropriate ministries, must speed a package of financial aid and expertise to them.  Agencies involved in agriculture, livestock, and fisheries must work cooperatively to achieve this objective in terms of research, yield enhancement, and marketing.

To conclude, lack of food supply will cause world food prices increased dramatically and could provoke a crisis that had a negative impact on political stability and the security of a country.  Therefore, to overcome this food shortage problem, every country needs to have an effective food security.



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