Saudi Press

Saudi Arabia and the world
Wednesday, Jan 14, 2026

The US$12 billion reason Mahathir’s Malaysia wants a return to agriculture

As it grapples with a US$12 billion food import bill, the country is considering a renewed focus on agriculture to boost food security and revenue in tandem. Malaysia is also looking to move away from its reliance on palm oil, which takes up a large chunk of the sector’s resources

In 1991, Malaysian Prime Minister Mahathir Mohamad introduced the concept of Vision 2020 – a plan for the Southeast Asian nation to become self sufficient and fully industrialised in less than three decades. The government’s policies in the 1990s sought to push Malaysians – particularly ethnic Malays, who make up more than 60 per cent of the country’s population – from agriculture to the manufacturing sector.

Now that 2020 is here, however – and Mahathir is back in the driver’s seat after his Pakatan Harapan coalition’s shock victory in the May 2018 election – some policymakers are suggesting a return to agriculture, a former cornerstone of Malaysia’s economy.

Grappling with a high food import bill – about 50 billion ringgit (US$12.3 billion) in 2019 – the government has been actively encouraging youths to take on agriculture and agro-food as professions, paying closer attention to grants and loans given out to farmers and fishermen. It has also cultivated ‘agropreneurs’ who bring technology into farming.

According to the nation’s Agriculture and Agro-based Industry Minister, Salahuddin Ayub, Malaysia’s food import bill had increased by an annual average of 6.5 per cent, with the likes of cereals, cocoa, vegetables, sugar and meat all brought in.

The agriculture sector contributed 99.5 billion ringgit to the nation’s GDP in 2018, with palm oil the sector’s major contributor at 37.9 per cent. But as Malaysia’s palm oil has been caught on the back foot by increasing pressure from the European Union – which is looking to phase out biofuels – and tensions with key importer India, prominent voices such as ex-finance minister Daim Zainuddin are calling for more emphasis on agriculture and the cultivation of the farming industry to reduce unemployment and boost revenue.

“If we start planting the right thing, we can reduce our imports. Not only that, we can also increase our exports, create employment and increase income. Once we do this, locals can get fresh produce at a lower price. If there is excess, we can export and bring in foreign money,” Daim, an adviser to the current Mahathir administration, told local media recently.

Malaysia was ranked 28th in the 2019 Global Food Security index, a jump of 20 places from the previous year, which the government attributed to its reduction of dependence on imports by encouraging the diversification of crops and improving fruit exports. A report published last year by the government-linked Khazanah Research Institute said while food access was no longer an issue for most Malaysians, food affordability remained an issue.

Agriculture minister Salahuddin’s deputy, Sim Tze Tzin, said Malaysia’s self sufficiency was at a good level despite its reliance on food imports, with items such as eggs, poultry and fish at or above target.

“We also export food, the balance of trade is about 16 billion ringgit, although even that is considered very high. We need to boost our food production while dealing with ageing farmers and a shortage of land,” Sim told the South China Morning Post, explaining that modern technology, vertical farming – the practice of growing crops in stacked layers – and urban farming were the ways forward.

Of Malaysia’s 8 million hectares of agricultural farmland, some 6.5 million hectares are accounted for by oil palms, while rubber trees take up 1.2 million hectares. “We definitely should be looking less at palm oil – not abandoning it, but diversifying and integrating the extant land with other crops,” Sim said.

The country’s federal land development authorities have been considering diversification to cash crops – normal crops as well as high-value vanilla, pineapple and rockmelon – as well as livestock farming to boost farmers’ incomes.

While Malaysia pursues the implementation of 5G wireless technology, it is also working to extend the internet of things – the extension of internet connectivity to physical objects – to the agriculture sector, allowing farmers to remotely monitor their crops through a web application, or receive alerts on environmental variables, enabling them to maximise crop yields.
While is vast potential to explore such “smart” farming in the country, there is a long road ahead, said communications and multimedia commission chairman Al-Ishsal Ishak.

“It is one of the key pillars of our 5G move, along with health, education, transport and smart city connectivity. We are going to enrich agriculture so that there’s a business model, attract younger people to this sector and reduce unemployment,” he said, adding that making farming “smart” would attract young Malaysians interested in the start-up and tech scene.

Said Ainun Jaabi, a researcher at the Institute of Strategic and International Studies Malaysia: “We are not categorised as a food-insecure nation, especially when we factor in the contribution of palm oil as a widely consumed vegetable oil. But we should not be dependent on one crop only, as that leaves us vulnerable to economic recessions and global fluctuations.

“We should encourage people to join agriculture by focusing not just on providing land, but also the necessary equipment and affordable technology to encourage urban and smart farming.”

Her take was echoed by political economist Khor Yu Leng, who said there should be no deterrence for agriculture as a profession, but a positive, “buy Malaysia” view from local consumers on the quality and safety of Malaysian farm produce was “a must”.

“The good agricultural practices of Malaysian farmers should be well established, and be held in high regard, to establish a loyal domestic market,” Khor said. “Pro-farmer and food-security efforts may be needed. Imports can flood the market in an unpredictable way and that has to be considered.”

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Trump Designates Saudi Arabia a Major Non-NATO Ally, Elevating US–Riyadh Defense Partnership
Trump Organization Deepens Saudi Property Focus with $10 Billion Luxury Developments
There is no sovereign immunity for poisoning millions with drugs.
Mohammed bin Salman’s Global Standing: Strategic Partner in Transition Amid Debate Over His Role
Saudi Arabia Opens Property Market to Foreign Buyers in Landmark Reform
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
CNN’s Ranking of Israel’s Women’s Rights Sparks Debate After Misleading Global Index Comparison
Saudi Arabia’s Shifting Regional Alignment Raises Strategic Concerns in Jerusalem
OPEC+ Holds Oil Output Steady Amid Member Tensions and Market Oversupply
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
President Trump Says United States Will Administer Venezuela Until a Secure Leadership Transition
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Saudi-UAE Rift Adds Complexity to Middle East Diplomacy as Trump Signals Firm Leadership
OPEC+ to Keep Oil Output Policy Unchanged Despite Saudi-UAE Tensions Over Yemen
Saudi Arabia and UAE at Odds in Yemen Conflict as Southern Offensive Deepens Gulf Rift
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Why Saudi Arabia May Recalibrate Its US Spending Commitments Amid Rising China–America Rivalry
Riyadh Air’s First Boeing 787-9 Dreamliner Completes Initial Test Flight, Advancing Saudi Carrier’s Launch
Saudi Arabia’s 2025: A Pivotal Year of Global Engagement and Domestic Transformation
Saudi Arabia to Introduce Sugar-Content Based Tax on Sweetened Drinks from January 2026
Saudi Hotels Prepare for New Hospitality Roles as Alcohol Curbs Ease
Global Airports Forum Highlights Saudi Arabia’s Emergence as a Leading Aviation Powerhouse
Saudi Arabia Weighs Strategic Choice on Iran Amid Regional Turbulence
Not Only F-35s: Saudi Arabia to Gain Access to the World’s Most Sensitive Technology
Saudi Arabia Condemns Sydney Bondi Beach Shooting and Expresses Solidarity with Australia
Washington Watches Beijing–Riyadh Rapprochement as Strategic Balance Shifts
Saudi Arabia Urges Stronger Partnerships and Efficient Aid Delivery at OCHA Donor Support Meeting in Geneva
Saudi Arabia’s Vision 2030 Drives Measurable Lift in Global Reputation and Influence
Alcohol Policies Vary Widely Across Muslim-Majority Countries, With Many Permitting Consumption Under Specific Rules
Saudi Arabia Clarifies No Formal Ban on Photography at Holy Mosques for Hajj 2026
Libya and Saudi Arabia Sign Strategic MoU to Boost Telecommunications Cooperation
Elon Musk’s xAI Announces Landmark 500-Megawatt AI Data Center in Saudi Arabia
Israel Moves to Safeguard Regional Stability as F-35 Sales Debate Intensifies
Cardi B to Make Historic Saudi Arabia Debut at Soundstorm 2025 Festival
U.S. Democratic Lawmakers Raise National Security and Influence Concerns Over Paramount’s Hostile Bid for Warner Bros. Discovery
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
Wall Street Analysts Clash With Riyadh Over Saudi Arabia’s Deficit Outlook
Trump and Saudi Crown Prince Cement $1 Trillion-Plus Deals in High-Profile White House Summit
Saudi Arabia Opens Alcohol Sales to Wealthy Non-Muslim Residents Under New Access Rules
U.S.–Saudi Rethink Deepens — Washington Moves Ahead Without Linking Riyadh to Israel Normalisation
Saudi Arabia and Israel Deprioritise Diplomacy: Normalisation No Longer a Middle-East Priority
Saudi Arabia Positions Itself as the Backbone of the Global AI Era
As Trump Deepens Ties with Saudi Arabia, Push for Israel Normalization Takes a Back Seat
Thai Food Village Debuts at Saudi Feast Food Festival 2025 Under Thai Commerce Minister Suphajee’s Lead
Saudi Arabia Sharpens Its Strategic Vision as Economic Transformation Enters New Phase
Saudi Arabia Projects $44 Billion Budget Shortfall in 2026 as Economy Rebalances
×