Malaysia Government Invests USD 1.06 billion to Transform Agriculture and Boost Rice Production

Oct 2024

The Malaysian government is initiating several major projects in the agricultural sector, with a significant focus on rice production. One of the key initiatives is a large-scale paddy cultivation project, valued at MYR 5 billion (USD 1.06 billion), aimed at increasing rice yields and improving farmers’ livelihoods.

The Ministry of Agriculture and Food Security has set an ambitious goal to raise Malaysia’s self-sufficiency in local white rice from 56.2% to 80% by 2035. To achieve this, funds will be used to modernize infrastructure, upgrade machinery, and improve irrigation systems, ensuring efficient water use in agriculture. These efforts are also supported by the Large-Scale Smart Paddy Field (Smart SBB) initiative, which integrates advanced technologies to enhance rice production. Through cutting-edge technologies such as farm management systems, mechanization, and the Internet of Things (IoT), the Smart SBB programme aims to boost both productivity and profitability for local farmers. In addition, the government has increased funding to upgrade irrigation systems in the Muda Agricultural Development Authority (MADA) region, covering the states of Kedah and Perlis. This funding will facilitate the implementation of a five-season paddy planting cycle over the next two years.

Currently, Malaysia spends MYR 3 billion (USD 635 million) annually on rice imports and heavily subsidizes paddy production, covering about 60% of the costs. To reduce reliance on imports from countries such as Vietnam, India, Thailand, and Pakistan, the government is focused on improving domestic yields, which average 4.5 tonnes per hectare across 520,000 hectares of paddy fields. PADIBERAS Nasional Bhd (BERNAS), a key player in Malaysia’s rice industry, is driving this transformation by adopting technological innovations like drones, automated machinery, and data-driven solutions. These advancements are revolutionizing paddy farming, reducing labor costs, and increasing efficiency while maximizing yields.

(Sources: The Edge Malaysia; The Star)

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