General 18/10/2026 01:15 PM

Budget 2027: Agriculture Allocations Must Ensure Food Security, Price Stability - Expert

BERNAMA Malaysian National News Agency
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Budget 2027: Agriculture Allocations Must Ensure Food Security, Price Stability - Expert
-- Gambar hiasan

By Nur Nadzmi Nasirah

KUALA LUMPUR, Oct 18 (Bernama) -- What happens in paddy fields, farms and at sea affects the food on Malaysians’ tables, especially when food supplies decrease and prices increase.

As such, the allocation for agriculture under Budget 2027 should be seen not just as assistance for paddy farmers, livestock breeders and fishermen, but as an investment in ensuring food security, more stable pricees and local production able to meet the country’s needs, according to an expert.

Head of the Laboratory of Agricultural and Food Policy Studies at the Institute of Tropical Agriculture and Food Security (ITAFoS), Universiti Putra Malaysia (UPM) Prof Dr Abdul Rahim Abdul Samad said focus needs to be on efforts to increase producers’ productivity and reduce production costs so that the benefits could be felt throughout the food supply chain.

He said production cost assistance, infrastructure development, financing facilities and technology adoption are important to strengthen the crop, livestock, fisheries and aquaculture subsectors.

“From an economic perspective, these measures go beyond the welfare of producers, as the performance of the crop, livestock, fisheries and aquaculture sectors is directly linked to the sufficiency of food supplies, food price stability and household purchasing power,” he told Bernama recently.

Citing the RM2.62 billion in assitance for paddy farmers, with estimated benefits of about RM4,300 per hectare, Abdul Rahim said the initiative could reduce the cost pressure of seeds, fertilisers, pesticides, ploughing and paddy price support components.

He said the increase in harvesting incentives from RM50 to RM100 per hectare per season, the continuation of the RM300 ploughing incentive, which has been extended to paddy farmers in Sabah and Sarawak, and the allocation of RM20 million for foliar fertilisers in paddy-growing areas covering over 10,000 hectares would also support efforts to increase paddy production.

He said efforts to upgrade irrigation systems in 15 paddy field blocks to support the implementation of five-season rice cultivation within two years, alongside the rehabilitation of the Pedu Dam, which is expected to be completed by the end of 2027, were important to strengthening the resilience of the country’s rice supply.

Meanwhile, he said the livestock subsector would also receive support through an allocation of RM300 million for agro-food projects through the collaboration of the Federal and state governments, as well as financing facilities exceeding RM1 billion through Agrobank, Bank Rakyat and the Malaysia Co-operative Societies Commission for agricultural entrepreneurs.

For the fisheries and aquaculture subsectors, an allocation of RM30 million to increase the number of holders of Special Boat Licences from 17,000 to 20,000 fishermen, alongside RM178 million for, among other things, catch incentives and a cost-of-living allowance of up to RM300 a month, could help support fishermen’s incomes.

“Amid uncertain operating costs and weather risks, these measures can help stabilise small-scale fishermen’s cash flow and ease pressure on their household incomes,” he said.

Abdul Rahim said the overall effectiveness of the allocations should ultimately be measured not only by the amount of aid channelled, but also by improvements in productivity, producers’ net income and the ability of consumers to obtain food at reasonable prices.

He said the approach should also take into account climate change risks and the need to increase local food production to reduce the country’s vulnerability to external supply disruptions.

-- BERNAMA