Call for hastening in agri research investment

M’sia needs to identify shortfalls of low productivity in the sector

PUTRAJAYA: Investment in agriculture research must be accelerated to identify the shortfalls of low productivity in the sector, as Malaysia’s agricultural productivity is less than half of high-income country averages, according to the latest figure by the World Bank Group.

World Bank senior agriculture economist Samuel Taffesse disclosed that the agriculture productivity, which is measured by value added per worker in the country, accounted for 45% of the average among high-income countries in 2017.

“The productivity gap between Malaysia and high-income countries needs to narrow as the country aspires to become a high-income nation.

“There has been low convergence of value added per agricultural worker compared to other countries. This involves improving the quality of labour to young and skilled farmers,” he said at the launch of World Bank’s report on Agriculture Transformation and Inclusive Growth: The Malaysia Experience.

High productivity in the agriculture sector would also translate to lower employment of unskilled workers in the sector and improvement of skills that commensurate with new technology.

Compared to high-income countries that employ an average of 5% farmers in the agriculture sector, Malaysia lags behind with the employment of 11% farmers.

With the constant challenge to enhance agriculture productivity, experts pointed out that there are many factors involved in developing smart and high-value agriculture including suitability, quality and pricing of the technology.

CGS-CIMB Research head of agribusiness Ivy Ng pointed out that the available technology in the market would need to provide economies of return in the long run.

“All this involves research, the right strategy and long-term investment. We have to learn the lessons from the past strategy and improvise it to boost agriculture productivity,” she said. The agriculture sector comprises of forestry, hunting, fishing, cultivation of crops and livestock production.

However, she noted that the government must set a clear strategy for companies to adopt smart and high-value agriculture, adding that collaborations in the form of public-private partnerships would be helpful.

Economic Affairs Ministry deputy secretary-general Dr Zunika Mohamed hinted that bold strategic initiatives may be implemented to increase productivity reflecting an agriculture system of a developed economy.

“The government is looking into reforming the country’s agriculture landscape through the deployment of modern technologies, comprehensive policies and more market-driven incentives.

“The strategy to revive the agriculture sector is ongoing as the government sees its potential beyond the country’s food security,” she said.

Without successful agriculture transformation, World Bank country manager Firas Raad said no country has made a transition to high-income status, as agriculture is at the heart of a country’s economic structural transformation.

“Without such shifts, there will be delays to economic transformation to the detriment of the overall economy, poverty reduction, food security and the broad welfare of urban and rural people,” he added.