MALAYSIAN STUDIES (GXCX 1501)
TOPIC: NATIONAL AGRICULTURAL POLICY (NAP)
INTRODUCTION
Malaysia is a Federal constitutional state located in South East Asia. It consist of 13 states, 3 federal
territories and covers a totality of 329, 847 square kilometres. Malaysia is divided into two land
areas, West and East Malaysia, that both are parted by South China Sea. Malaysia obtained it’s
independency during Tunku Abdul Rahman as a prime minister, from British on August 31, 1957.
Before independence, Malaysia was known as Malaya.
Malaysia have a strong aim in becoming one of the advanced ultra modern and developed country
by 2020. Malaysia’s economic are contributed into 4 sectors, service sectors, manufacturing sectors,
mining sectors, and agriculture sectors. Despite of the small contribution in agriculture, it is still one
of the most important sectors to Malaysia. This is in conjunction of, it supplies nourishment such as
food based crops - paddy, vegetables, fruits, raw materials to resource based commercial and creates
the opportunity in employment or line of work to help the rural people and generated earnings for
the community people. Besides that, it helps the national income and export earnings. In cessation,
it helps the development of social and economic growth.
Next, the government pursue to take forward adjustment and reconciliation measures to accelerate
competitiveness of the sector as to qualify it to face new emerging challenges at domestic and
international levels.
In achieving the 2020, the government will bring in on new approaches to increase and strengthen
productivity and competitiveness, deepen and intensify linkages with other field, venture into new
frontier areas also protect and employ natural resources on a sustainable basis. The aims to set in
place understanding and supportive measures as well as a beneficial environment to raise improve
the position in growth of the agricultural sector. The policies and plan of action formulated will
press on with to emphasize and highlight the productivity and market driven growth.
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BACKGROUND
Agriculture at the time were based on traditional agriculture. The industrial farming were began
with the growing of rubber trees seedlings. It was first establish in Kangsar, Perak in 1887. The
establishment of Rubber Research Institute in 1926 helped Malaysia to be the lead exports of rubber
in the world until the end of 1980s.
Oil palm then got introduced and make headways in the early year of 1960s followed by cocoa in
the year of 1970s. The establishment of Palm Oil Research Institute (PORIM) in 1979 had made oil
palm another strategic crop to the nation’s economy.
The contribution towards Gross Domestic Product (GDP) grow to RM 6.8 billion in 1995, contrast
to 3.6 billion in 1985 which increase 5.6 percent. In 1985, total area plantation of oil palm become
greater from 1.5 million hectares to 2.5 million hectares in 1995. The establishment of the
Malaysian Cocoa Authority in 1988 to conduct experimentation on production, processing, storage
and uses had give strength to the position of cocoa as a catch crop in the Malaysian agriculture
sector to the country compared to other sectors such as manufacturing and services.
For many years, this sectors has been the backbone for Malaysian economic by producing
agriculture products for domestic utilisation, as the earner of foreign exchange. It also contributes to
Gross Domestic Product (GDP) which means the total value of goods produced and services
provided in a country during one year. Based on the employment, it helps a lot for the rural areas.
For example the source of Economic and Technology Management Research Centre, Mardi said -
in 2013, more than 1.6 million people has been employed. Not to mention, the total export earning
is more then 23 percent and adds about 7.2 Malaysia’s Gross Domestic Profit (GDP).
However, systemic changes in the economy have brought forth new concern and challenges in the
agricultural sector in specific labour shortage that resulted in the intensify of idle agriculture land,
also this sector depends on foreign labor which more than 750,000 registered foreign labor were
employed in 2012. Besides that, limited availability of suitable land and large cost of production
emerge from intersectional competition for resources. This factor is due to the increase of wages,
the price of agriculture inputs and capital cost. Furthermore, low productivity and quality of
agricultural produce. Finally, great competition in the global market resulting from trade
liberalisation.
This caused declining every year, as example the agriculture’s share in 2010 which is 7.58 percent
to around 7.0 percent in 2014. However, in 2010, the contribution of agriculture has increased from
RM 51.3 billion to nearly RM 56.0 billion in 2013 and forecasted to further large sum of RM 58.0
billion.
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GROSS DOMESTIC PRODUCT BY KIND
OF ECONOMIC ACTIVITY
(RM MILLION)
2010 2010 2010 2010 2010
Agriculture 51, 263 54, 253 54, 782 56, 281 57, 996
(2.40) (5.80) (1.00) (2.70) (3.00)
Mining and 66, 182 62, 565 63, 432 64, 858 66, 874
Quarrying
(-0.3) (-5.5) (1.40) (2.20) (3.10)
Manufacturing 170, 261 178, 237 186, 784 192, 786 200, 073
(11.90) (4.70) (4.80) (3.20) (3.80)
Construction 21, 459 22, 464 26, 531 29,332 32,157
(11.40) (4.70) (18.10) (10.60) (9.60)
Services 359, 829 385,179 409,976 432,320 457,103
(7.40) (7.00) (6.40) (5.50) (5.70)
(+) Import 7, 660 8, 653 10, 001 10, 848 11, 386
Duties
GDP at 676, 653 711, 351 751, 471 786, 526 825, 590
purchaser’s
price
(7.40) (5.10) (5.60) (4.5-5.0) (5.0-5.5)
Share of 7.58 7.63 7.29 7.16 7.02
agriculture to
GDP (%)
Source: Malaysia Economic Report (2013/2014)
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FIRST NATIONAL AGRICULTURAL POLICY
National agricultural policy was launched on 12 January 1984. The period of 1984 to 1990 marks
an important thershold in the transformation and development of Malaysian economy. This era saw
the rapid expansion of the manufacturing sector and altered the relative importance of the
agriculture sector. During the period, the overall development of the agricultural sector was
overwhelmed with greater challenges such as favourable policies towards manufacturing, shortages
of labor, increasing cost of production and competition for land with other sectors.
This policy was formulated as a guideline for both the public and private sectors in developing the
agricultural sector. This policy was also drafted in response to the declining contribution of the
agriculture sector to the country compared to other sectors such as manufacturing and services. The
first National Agricultural Policy (NAP1) was established in 1984 to address the issue of rural
poverty and imbalance of income between the commercial and traditional farmers. This policy was
formulated in response to the inability of previous policies to eradicate poverty and slow
performance of the agriculture sector as the country’s engine of economic growth.
The National Agricultural Policy was established as a comprehensive and coordinated long-term
policy of a succesful development of the agricultural sector. The emphasis of this policy was to
eradicate poverty among traditional small holders’ farmers and at the same time to increase the
value of the agricultural produce for export markets. During this period, Malaysia has been
abundant with labor and adequate land suitable for agriculture. Thus, the development of new land
creates employments in the rural areas and at the same time increases the production of agro-food
products for local consumptions.
The National agricultural policy was drawn up to develop the agricultural services up to the year
1991 with the objectives of maximizing the income from this sector enabling it to contribute to the
economic growth of the country, maximizing the income of smallholders and farmers through the
increase of production and thus reducing the rate of poverty and to promote the main commodities
with good potential for export.
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THE SECOND NATIONAL AGRICULTURAL POLICY
OBJECTIVES
The second national agriculture policy is introduced in year 1992 until 1997 after first national
agriculture policy has build in 1991. The purpose of this policy is to show that the challenge faced
by the agriculture sectors , especially for the demand in agro food products and all the agriculture in
Malaysia that has been told above in the domestic and global market . This second policy is
emphasis of agriculture in the Malaysia on productivity which is more effectiveness to the
economic aspects and the growth of the agriculture in the country .
The objectives in this second national agriculture policy is to increase the national production , to
emphasized towards enhancing competitiveness , the effectiveness and national agriculture
competition to expand more this agro into wide market . However , this objectives of national
agricultural policy are the institutional development to concentrated the integration of agro in small
into the bigger co-operatives agro as been a support given to also achieve the strategic goals which
is beside to being export value and it is important to the local manufacturing .
For the first objectives is to increase the national agriculture production . It has to realize of scales
and to be internationally in the long run . It was like in early agro in Malaysia was agro food like
paddy fields , vegetables and fruits and also the fisheries . It wants to make all this production to be
expand this until the international marketing . Based on my research , even the production of
national agricultural increased , but the production on food was low because of the government
policy to move the country from an agricultural economy to an industrial economy . Also , it is
concentrate to agriculture sector commodities such as palm oil , cocoa and rubber , and others that
would support industrial growth .
Other than that , to emphasized commercialization towards enhancing competitiveness and it`s also
to ensure the agricultural sector was well and to commercialisation . It should be market-led to all
country . Therefore , it can be economy viable even the exploration of new crops is actually for their
earning potential . This commercialization is based on the research and development (R&D) . Also ,
it is the base of agriculture sector in the development plans in the Malaysia that has a
competitiveness.
Besides that , other objectives is the effectiveness and national agriculture competition to expand
more this agro into wide market . This is where the agro is driven more to market and slanted
towards to human resources development for effectiveness agro-business . Based on my research ,
Malaysia have a plan for the human resource to develop them based on training in farming ,
agricultural techniques , fishing and others . All this effectiveness are want to Malaysia`s agro can
be wider of the competition from others country so that`s why Malaysia make a training for the
human resource . Investments in agriculture was to be in agriculture commodities that can be
support industrial in Malaysia growth well .
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THE SECOND NATIONAL AGRICULTURAL POLICY
STRATEGIES
The strategies used to achieve these objectives are as follows:
First, optimize resources utilization to diversity export crops cultivation into other activities.
Besides, accelerate more off-farm opportunities for small holders to earn additional income.
Furthermore, enhance R&D to overcome the production processes, labour shortage and other
constraints in the agricultural sector. It also maximize participation of the private sector to transform
the sector into a more competitive and efficient sector and enhance human-resources development
through training.
During the National Agricultural Policy 2 (NAP2) the government provides incentives through the
development of new infrastructures and subsidy programs that benefits small holder farmers in all
sub-sectors. The government also opened new land areas for industrial crops such as rubber and
palm oil as well as for agro-food such as paddy, pineapple and vegetables.
Moreover, increasing the stock and quality of strategic infrastructure to accelerate the country’s
competitive. To promote agricultural productivity and sustainable management of land resources to
achieve national food sovereignty, increased income and ensure sustainable socio-economic growth
and development.
Last but not least, providing employment opportunities and promoting domestic and international
trade. The strategies to achieve the objectives, working closely with all stakeholders in agricultural
including central and local government ministries, departments and agencies, private sector, civil
society, farmers and development partners.
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THE THIRD AGRICULTURAL POLICY
The government then introduced the Third National Agricultural Policy (NAP-3) between 1998
and 2010. This document outlines the Third National Agricultural Policy (NAP3) which sets the
strategic directions for agricultural and forestry development to the year 2010. This policy has been
formulated to ensure that the capability of the agricultural sector to play its strategic role in national
development is sustained and enhanced in light of new and emerging challenges facing agricultural
development. Towards this end, NAP3 will focus on new approaches to increase productivity and
competitiveness, deepen linkages with other sectors, venture into new frontier areas as well as
conserve and utilize natural resources on a sustainable basis. Besides, the main objectives of the
NAP-3 were to maximize income through the optimal use of resources within the sector. The policy
aims to set in place the enabling and supportive measures as well as a conducive environment to
promote growth in the agricultural sector. This policy included efforts to maximize contributions
from the agriculture sector to the Gross Domestic Product (GDP), export income as well as the
incomes of farmers, livestock breeders and fishermen. The policies and strategies formulated will
continue to emphasize productivity and market driven growth.
Structural changes in the economy have brought ahead new issues and challenges in the
agricultural sector in particular serious labor shortage, limited availability of suitable land and
increasing cost of production arising from inter sectoral competition for resources as well as intense
competition in the global market resulting from trade liberalization. The recent financial crisis in the
country and the region resulting from the further liberalization of the financial market has made the
currency market highly powerless to speculation. The volatility and aftermath decline in the
exchange rate of the Ringgit, major currencies has negatively affected the stability and security of
the country's food supply. This instability and insecurity, if left unchecked, can have serious
economic, social and political implications. The further growth of the agricultural sector requires
the nation to address the challenge of efficient and optimal utilization of existing resources in order
to further improve competitiveness. Resource constraints and rapid changes in the global trading
and investment environment require the development of a strong agricultural sector and the
enhancement of its global competitiveness. In addition, the concern over the availability and
stability of food supply requires the nation to enhance its competitive capabilities in food
production. These challenges require new strategic approaches and policy thrusts to enhance the
economic contribution and growth of the agricultural sector
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OBJECTIVES OF THE POLICY
The main objective of NAP3 is to maximize the income through the optimal utilization of
resources in the sector. This includes maximizing agriculture's contribution to national income and
export earnings as well as maximizing income of producers. The first objective of the policy is to
increase food security. This is because of the growing challenge in the developing world, highly
critical to alleviating poverty as well as rising food and agriculture costs. By improving availability,
accessibility, utilization and stability of the food could overcome the negative effects. Next, to
increase productivity and competitiveness of the sector. Increasing productivity is essential in
responding to increased demand for agriculture products by the growing population and increasing
income. While the increasing of competitiveness will leads to the ability of firms to compete or to
be competitive depends on their operating economic environment such as superior technology and
good infrastructure that can increase profitability by increasing output prices, lower input costs and
increase the efficiency of production. Other than that, strengthening links with other sector. Sectors
in economic system are related to each other, thus the linkage with other sector plays an important
role especially existence of long-run growth relationships, dynamics of short-run growth and the
effects of market liberalization. Next, conserving and ensuring sustainable use of natural resources.
Our economic has high demand with limited natural resources, therefore a good management and
control for allocation of resources with high efficiency applied could avoid from resource depletion.
NAP aims at high productivity while ensuring conservation and utilization of natural resources on a
sustainable basis. Lastly, to create new sources of growth for the sector. Complete application of
research findings can creates new sources along with current technology of machines and
modernized techniques to increase the growth of the sector as well as the quality of the sector.
The realisation of the objectives of NAP3 requires a strong economic foundation, technology,
financing and incentives to further increase efficiency, productivity and competitiveness of
Malaysian agriculture. Under the NAP3, agriculture development is geared towards using less labor
input, fully mechanised and automated production system and processes. Application of new
technologies aimed to increase productivity and at the same time reduce the cost production.
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STRATEGIC APPROACHES AND POLICY THRUSTS
Increasingly limited resource including land availability requires a strategy that optimises resource
use for agricultural and forestry development and consumers worldwide are increasingly demanding
products that are more specific to their needs. They are now accessible to information technology
which support their ability to seek, identify and earn these products. The NAP3 employed two
approaches; forestry and product-based. These approaches together with the policy thrusts will
provide the enabling environment to sustain and enhance the growth of agricultural sector and
become more globally competitive.
A)Forestry Approach
This approach focuses on the problems related to the lack of resources including land, labor
and raw materials. Through this approach, agriculture and forestry are viewed as two
complementary activities. The benefits of this approach are by providing large areas for
combining various forestry and agriculture activities, thus optimising the use of resources,
especially lad and increasing the potential of income generation from forestry investments,
enabling the production of agricultural and forestry yields from the same land and thus
reducing the demand for new agricultural land, supporting various symbiotic relationships,
such as planting forests species alongside industrial crops to optimise land usage and maximise
returns, providing opportunities of early and continuous returns from the agriculture
components in the mixed industry. This would encourage the participation of private sectors in
the commercial forest plantation industry and thus increase the supply of timber for wood-
based industries.
B) Product-based Approach
Through this approach, the main products and markets are identified based on demand, market
potential and consumer preferences. The product-based approach emphasised on the needs and
preferences of the consumers as well as on specific markets all over the world. It will create
the opportunity to increase production and improve agricultural marketing. The product-based
approach also helped by complementing the agriculture-based industrial cluster development
approach which was identified in the Second Industrial Master Plan (1996-2005) through the
unification of links within and between economic sectors that included the development and
expansion of support and intermediary industries, increasing the production of specific
agricultural products by sharing information on market indicators and consumer preference
trends with producers at the farm level. This encouraged the production of high quality
agricultural products, assisted in product differentiation and adding value to products fulfilling
the needs of various local and international market segments, identifying and broadening
market opportunities. Market indicators which were channeled to the producers helped them in
making decisions referring to the production of raw materials that are needed to support
agriculture-based production activities and other economic activities.
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Meeting national food requirements
Domestic food production will be enhanced through large-scale food production by the private
sector. This necessitates the strengthening of critical support services and institutional
arrangements. Reverse and offshore investments for strategic sourcing will be encouraged and
Judiciously pursued.
Enhancing competitiveness and profitability in agriculture and forestry
Enhancing competitiveness and profitability in the agricultural sector will require focusing in
promoting globally competitive industries in agriculture and forestry. This will require the
development of a world competitive outlook within the sector and an export culture with
commitment to provide what the market wants at competitive prices. The competitiveness of the
sector will be enhanced through productivity improvement, developing and strengthening markets,
removal of market and trade distorting protective measures, formulation and implementation of
high quality and safety standards and selective development of agricultural and forestry enterprises
based of present and potential competitive strengths. Further strengthening of competitiveness and
profitability will be achieved through the development of new and innovative products and
capitalising on the product value chain that will generate sources of future growth and create new
higher value industries. Reducing labor inputs in agriculture and forestry will also strengthen
competitiveness and profitability of the sector.
Capitalizing on the product value chain requires reorientation from commodity-based to
product-based production and marketing.
This approach to capture higher margins and increasing farm incomes will involve vertical
integration and internalising of value-added activities at farm level. In addressing the limitation of
labor, the thrust will be on capital and technology intensive agricultural production systems which
will utilise labor saving techniques. Agricultural and forestry development will also be move
towards less labor-intensive enterprises such a agro forestry and the cultivation of high-value crops
and forest species that requires less labor
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Enhancing the integrated development of the food and industrial crop sub-sectors
There are resources within the industrial and food crop sub-sectors that can be exploited for an
integrated development of both sectors. These resources include land, labor and waste as well as by-
products that can be used to produce value-added products. An illustration of this integrated
development is shown in Chart 1. This thrust requires further enhancement of R&D in waste and
by- product utilisation as well as increase efforts to commercialise research findings.
Strengthening requisite economic foundation
A strong required economic foundation is necessary to support and sustain the development of
existing core agricultural an forestry industries and initiate the growth of new ones. These include
continuous upgrading the quality of human resources, development of local R&D capability and
technology including information technology, sufficient and modern physical infrastructure,
efficient business support services, financing and incentives and an enabling institutional
framework.
Adopting sustainable development
Sustainable management and utilisation of resources will be the guiding principle in pursuing
agricultural and forestry development. Rules, regulations and incentives will be strengthened to
encourage environment-friendly agricultural and forestry practices and minimise the negative
impact of these activities on the environment. Research and application of appropriate technologies
and innovations for this purpose will be emphasised.
The NAP3 provides clear policy directions for selected commodities and clusters.
The clusters were divided into 9 product groups as follows:
- Food product group which consists of paddy, livestock, fisheries, fruits and vegetables.
- Forestry and wood-based products
- New products and future industry
- Floriculture products and aquarium fish
- Sago
- Roselle
- Equine and exotic animals
- Agro-tourism
- Other economic crop products
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Malaysia Agriculture Agencies
A)FELDA
Federal Land Development Authority (FELDA) is a Malaysian government agency that was
established on July 1, 1956 under the Land Development Ordinance of 1956 for the development of
land and relocation with the objective of poverty reduction through the cultivation of oil palm and
rubber. The FELDA function is to carry out projects of land development and agricultural activities,
industrial and commercial social economy.
FELDA was no longer form new settlers in 1990. Government has given the responsibility to
FELDA to stand with their own financial and become a statutory body that can generate their own
income to support various development through a variety of businesses. From 1994 onwards the
government does not channel any provision to the schemes. FELDA has launched a number of
private corporate entities primarily to ensure complete value chain of its core activities to generate
income. Among the largest are FELDA Capital cooperative (Cooperative FELDA), FELDA Global
Ventures (FGV) and FELDA Investment Corporation (FIC).
Today, FELDA continues to carry major role by providing sufficient and modern facilities by
ensuring the next generation of explorers educated to enhance the socio-economic and ensuring the
schemes can generate various economic activities as well as bridging the gap between urban and
small urban areas. FELDA focus is to be the 'Economic Powerhouse' in generating economic
activities in 2020 through its structural program with a wide range of human capital potential.
B) FELCRA
Federal Land Consolidation and Rehabilitation Authority (FELCRA) was established in 1966
which is a fully-owned subsidiary principally involved in processing of oil palm and marketing of
palm oil. Its objective is to develop rural sector by helping its community to participate in national
economic activities, thus improving their standard of living.
Since 1997, FELCRA is known as FELCRA Berhad due to its corporatization. The government
has fully taken over the company and it is no longer a statutory body. FELCRA is now able to
explore new business opportunities, in line with national development goals due to its change to
corporate entity. FELCRA Berhad is now diversifying its activities into industrial and service sector
as well as other growing business areas such as construction, engineering and real estate
development, management, and trade with the company’s efficiency of plantation management and
core activities skills. FELCRA Berhad creates a dynamic, attractive and profitable rural sector. This
is in line with its operational strategy which balances profit oriented programmed with social
obligation.
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C) RISDA
RISDA is one of the Federal Statutory Bodies under the Ministry of Rural and Regional
Development and was established on 1 January 1973 under Rubber Industry Smallholders
Development Authority Act (Act 1972). RISDA is responsible for replanting of smallholder rubber,
early maintenance of planted crops, crops rehabilitation, agricultural inputs for crops in production,
supplemental support for mini-estates, construction and maintenance of agricultural access roads
and improve agricultural extension services and smallholder training. This agency also provides
institutional developments which are the provision of management facilities and vehicles, including
office technology equipment to help computerize RISDA's management information system and
improving staff training and plantation studies.
RISDA is responsible for all aspects of the development of the smallholder sector. This includes
modernizing the smallholder with complete application of research findings and technical
advancement in rubber cultivation and processing, and thus, cooperating with MARDEC in creating
an efficient marketing system for the smallholder that would increase the rubber production quality,
higher yield and earn higher returns. RISDA also hold an "Integrated Approach" to problems faced
by smallholders. At times the smallholder problems handled by several organizations, namely, the
Board of the rubber industry (Replanting), rubber Research Center (RRI) and MARDEC. This will
leads to the increasing of economic status of smallholders with the implementation of the new
economic policy.
D) FAMA
The Federal Agriculture Marketing Authority (FAMA) is an agency under Ministry of Agriculture
and Agro-based Industry in 1965 as statutory. FAMA is responsible in the supervision, coordination,
regulation and improvement of the marketing of agricultural products, which include fruits and
vegetables, for domestic, export and import markets. As the leading marketing agency in both the
domestic and international markets, FAMA's role in the marketing of agro-food products is to
expand market size of agro-food products and to raise the income of producers. FAMA is also
responsible in ensuring consistent supply of agricultural and agro based products at affordable
prices to consumers.
FAMA had implemented its responsibilities by way of increasing efforts to improve efficiencies
throughout the marketing chain by focusing on strengthening supplies through the contract farming
programmed, expanding market access and increasing domestic and export market promotions.
FAMA also organizes marketing activities, set targets and product standards, monitor performance,
develop marketing strategies and tools as well as initiate innovative programmed to promote
Malaysian agricultural products. Other than that, FAMA is a non-profit trade association. Its overall
goal is to improve business conditions and to advance and protect the interests of the fire and
emergency services industry through the use of effective open communication. FAMA also has
established an excellent working relationship with many government agencies.
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E) FRIM
Forest Research Institute Malaysia (FRIM) founded in 1929, which is a qualified statutory body
responsible by the Malaysian Forestry Research and Development Board (MFRDB) under the
Ministry of Primary Industries, in 1985. The main function of this institute is to plan and implement
research for the development of the forestry sector and conservation of forest resources. Other than
that, it is responsible for obtaining and distributing research information to enhance forest
management and the use of forest products. To diversify their research, FRIM establish joint
research and joint forest development with other bodies within and outside Malaysia.
Its objective is to generate scientific knowledge for the understanding, management, conservation
and use of forest resources. FRIM also use the latest scientific equipment to achieve excellence in
research and development. Next, FRIM implements intensive research and development to study
biodiversity and develops related technology to fulfill the needs of the forestry industry. This
agency also provides operational activities which are facilities and professional services in order to
raise environmental awareness. FRIM also provides accurate and professional advice and technical
services and disseminates the technological and research products. To produce a class of
authoritative and competent scientists, it as well provides human resource development
programmes.
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FINDINGS AND RECOMMENDATIONS
Our group developed specific recommendations to improve agriculture in our country. This
recommendation needed to increase resources available to agriculture and use them more
efficiently. These recommendations are grouped into four categories as listed below:
Stable price
This is important to provide local and foreign investors with confidence and to enable farmers and
traders to take long-term decisions based on the information . In a realistic time the same exchange
rate , lower tariffs and the effective price is required to ensure that agricultural producers and
consumers face price and other incentives that reflect the comparative advantages, opportunities and
resource costs society as a whole , and promote the use of productive resources and investment.
Enhancing productivity and competitiveness
Important in this regard is the development of rural infrastructure , strengthen research and
development , enhancing human capital in rural areas through health , education , and access to
productive resources , and maintain the capacity of the environment and natural resources to
maintain high productivity . Although the main focus of the current reforms has been in
macroeconomic policies and price , it is a weakness in this area and requires a significant increase
in investment in agriculture , by both the public and private sectors , if they are to be overcome.
There also needs to be the ability of the dynamic of the technology , resources , institutions ,
knowledge and markets to be adjusted to deal with congestion row or constraints that affect system
specific commodity , to respond to the problem of exhaustion of natural resources or destruction ,
and to diversify take new opportunities .
Access to foreign markets
When access to foreign market , it will have import and export. So it could improve to our country
agricultural markets by lowering tariffs and reducing or abolishing export subsidies , reducing tariff
escalation and encouraging the flow of foreign direct investment to improve technology and
knowledge transfer. So it will increase more profit to everyone that involve in agricultural.
Diversification of production and exports
There are obvious reasons to diversify production and export base of low value added to high value-
added products. A various measures at different levels required. The most important are maintaining
macroeconomic and political environment that is stable and predictable. Creating a regulatory
framework that is fair and open. We also need to improve the efficiency of financial institutions,
strengthening research and extension for developing and adopting relevant technology. We also
have to improving rural services , improve marketing, transport and communication infrastructure
and human resource development.
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REFERENCES
1) Agriculture Development Retrieved from
http://www.epu.gov.my/en/pertanian
2) Malaysian Studies Retrieved from
Malaysian Studies Second Edition (Oxford Fajar)
Ministry of Agriculture Malaysia (1983)
National Agriculture Policy (1984-1991)
Ministry of Finance (2013) Malaysia Economic Report 2013/2014
3) Second National Agriculture Policy Retrieved from
file:///C:/Users/user/Downloads/Situation%20of%20Agriculture%20in% %20(2).pdf
4) Third National Agriculture Policy Retrieved from
http://www.pmo.gov.my/dokumenattached/Dasar/29THIRD_NATIONAL_AGRICULTURAL
_POLICY_(1998_-_2010)_-_EXECUTIVE_SUMMARY.pdf
5) Transformation of Agricultural Sector In Malaysia Through Agricultural Policy Retrieved from
http://ap.fftc.agnet.org/ap_db.php?id=386
6) Malaysian Agriculture Agencies Retrieved from
http://www.frim.gov.my/about-us/overview/
http://www.fama.gov.my/en/latarbelakang1#.VyJ4A_l97cc
http://www.risda.gov.my/index.php/en/tentang-kami/profil/sejarah
http://www.felcra.com.my/background
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