Answer for Oral Question PL080

QUESTION

Yang Berhormat Awang Haji Md. Salleh bin Haji Othman

Yang Berhormat Awang Haji Md. Salleh bin Haji Othman asked the Yang Berhormat Menteri Sumber-Sumber Utama dan Pelancongan to state the status of the agricultural subsidy distribution policy for farmers and operators, as well as the assessment of the effectiveness of agricultural subsidies in increasing productivity, produce quality and farmers’ income.

ANSWER

Yang Berhormat Menteri Sumber-Sumber Utama dan Pelancongan

The agricultural subsidy distribution policy is currently implemented through the Skim Insentif Pertanian dan Agrimakanan (SIPA), administered by the Department of Agriculture and Agrifood. This scheme aims to provide support to operators and farmers, particularly during the initial stage of their enterprises, through assistance in the form of inputs such as fertilisers, pesticides, seeds, packaging materials and farm equipment.

The total expenditure on subsidies for the 2025/2026 Financial Year was BND$1,115,127, which was allocated to support production costs such as fertilisers, pesticides and seeds. In 2025, as a result of this support, the total value of crop production reached BND$63.51 million, demonstrating that such efforts have played an important role in stimulating increased productivity and ensuring the continuity of production in the crop sector.

The main objectives of this scheme are to help increase agricultural and agrifood production, strengthen the competitiveness of local operators and encourage greater participation in this sector, particularly among small-scale farmers and youths.

In terms of the current policy status, SIPA assistance is provided for the first five years as a catalyst to reduce the initial costs of an enterprise. This approach aims to help operators build their technical and financial capacity until they are able to become self-sufficient without relying on Government assistance in the long term.

With regard to the assessment of the effectiveness of this scheme, the Ministry continuously conducts monitoring and reviews to ensure that the subsidies provided have the appropriate impact on the development of the agricultural sector.

In terms of production productivity, input subsidies such as fertilisers, pesticides and seeds help reduce production costs, as well as enable operators to increase the area and intensity of production.

In terms of produce quality, the Ministry emphasises that input subsidies need to be accompanied by compliance with Good Agricultural Practices (Good Agricultural Practices – GAP), the use of suitable inputs and the adoption of modern technology to ensure higher-quality and safer produce.

In terms of operators’ income, subsidies help reduce operating costs and consequently increase profit margins, particularly for small-scale farmers. Nevertheless, the Ministry also adopts a continuous approach to ensure that subsidies are targeted more effectively and that leakages in their implementation are avoided.

Overall, these agricultural subsidies are viewed not as a permanent support mechanism, but as a means of helping companies and operators strengthen the resilience of their enterprises, thereby enabling them to become more self-sufficient and avoid continued dependence on Government assistance schemes. This scheme is also expected to help companies achieve operational sustainability and operate independently in the long term.