Answer for Oral Question PL070

QUESTION

Yang Berhormat Awang Haji Mohamad Danial @ Tekpin bin Ya'akub

Yang Berhormat Awang Haji Mohamad Danial @ Tekpin bin Ya'akub requested Menteri Sumber-Sumber Utama dan Pelancongan to state the plans to involve more entrepreneurs, such as small-scale farmers, youths and local entrepreneurs, in local food production within the agricultural value chain.

ANSWER

Yang Berhormat Menteri Sumber-Sumber Utama dan Pelancongan

To involve more entrepreneurs, including small-scale farmers, youths and local entrepreneurs, in local food production, the Ministry of Primary Resources and Tourism is implementing a comprehensive approach covering the entire value chain of the agriculture and agrifood industry, from the pre-production and production stages through to processing and marketing.

1. Facilitating the entry of new entrepreneurs into the agricultural sector

The Ministry provides opportunities for small-scale farmers, youths and local entrepreneurs through the provision of agricultural sites and technical guidance to start their businesses. At the same time, cooperation with financial institutions is also undertaken to facilitate access to financing, while training and capacity-building programmes are conducted to enhance farm and business management skills.

The Ministry provides opportunities for interested new entrepreneurs through the allocation of agricultural sites under pilot project initiatives and site expansion programmes. In addition, the Ministry also collaborates with financial institutions to provide more entrepreneur-friendly financing facilities for youths. With the availability of these pilot projects, the process of obtaining agricultural sites for new entrepreneurs is fast and easy. Generally, the area of the site offered is at least 2 hectares, subject to the type of commodity to be cultivated.

2. Strengthening production capacity and farm productivity

The Ministry continues to develop new sites and optimise the use of existing sites to increase local food production. Measures such as strengthening biosecurity on farms and at aquaculture ponds, facilitating access to agricultural inputs and promoting the use of modern technology are also being implemented to improve the productivity and operational efficiency of entrepreneurs.

3. Developing a support ecosystem within the agrifood value chain

The Ministry encourages the involvement of foreign direct investment (FDI) and government-linked companies (GLCs) to strengthen the development of the country’s agrifood sector, particularly in the provision of inputs, technology and infrastructure, as well as access to export markets through the existing market networks of FDI and GLC companies.

The participation of large-scale investors will increase the industry’s capacity and strengthen the country’s agricultural value-chain ecosystem. At the same time, it will create more opportunities for local entrepreneurs and small enterprises to increase farm output as a supply of inputs to FDI and GLC companies, particularly for export markets. The relevant FDI and GLC companies can market surplus supplies that cannot be absorbed by domestic market demand, for example through contract farming schemes or farm produce buy-back schemes. In the fisheries sector, the FDI company Barramundi Group (B) Sdn Bhd obtains supplies of selungsong fish fry from local fish hatchery enterprises for its fish-farming operations, while the FDI company Lianfeng Investment Sdn Bhd obtains raw material supplies from the capture fisheries industry for its processing plant through local fishing companies.

4. Increasing value-added and market access

To enhance the competitiveness of local products, various programmes have been implemented, including the Product Enhancement Programme, which focuses on improving packaging quality and labelling, conducting product shelf-life studies and product differentiation. In addition, business matching between suppliers and food entrepreneurs, as well as cooperation with relevant agencies such as BEDB in organising technical training and providing financial support to obtain the relevant certifications, are also being undertaken to expand market opportunities.

In addition, support facilities such as research laboratories and technical infrastructure are provided to assist entrepreneurs in addressing challenges in the production, processing and distribution of agrifood products. The Ministry also collaborates with BDFA to facilitate market access for agrifood products by ensuring compliance with the food safety requirements and standards set by importing countries, including the issuance of health certificates for export purposes.

Through this integrated approach, the Ministry seeks not only to increase local food production, but also to develop a more inclusive and resilient agrifood value-chain ecosystem. With continued support in infrastructure, financing and capacity building, the Ministry is confident that more small-scale farmers, youths and local entrepreneurs will be able to participate actively in this sector, thereby contributing to the country’s food security and economic diversification.