AGRICULTURE AS ENGINE GROWTH? - MALAYSIA

This is my last article for 2020!. In Malaysia nowadays the development economists in general and the agricultural economists in more particular, have long focused on how agriculture can best contribute to overall economic growth and modernization, premised on their in-grained believe that robust agricultural growth and productivity increases are crucial to sustained economic development, at least up till the mid 1980s. Since then, and despite this widely acknowledged role of agriculture in economic development, many policy makers, policy analysts and academics in developing countries, international agencies and donor communities appear to have lost interest in the sector, often relegating its role ‘from engine of growth to sunset status’ or arguing for its continuing relevance and importance because of its ‘multifunctionality role’ (Abd Rahman, 1992). However, after almost two decades of relative neglect, interest in agriculture is returning in a big and passionate way, as manifested in Malaysia where it is heralded as the next (third) engine of growth and promoted as ‘New Agriculture’ in Malaysia’s latest 5-year development plan as the Ninth Malaysia Plan, 10th Malaysian Plan, 11the Malaysian Plan and the new 12th Malaysian Plan. Blog 'Anim Agriculture Technology' write about the agriculture as an engine of economic growth in Malaysia.

The purpose of this paper is two-fold. Firstly, I elect to explore the reasons why agriculture is firmly back on the policy agenda of Malaysia and other countries. In so doing, a major motivating factor for writing this paper and orientating it in this elected manner is my observation that despite the timeliness and relevance of this (re)emphasis on agriculture, given Malaysia’s current stage of development and relative endowments, on the one hand, and the challenges and opportunities accompanying globalisation and rapid technological change (in biotechnology, information and communication technology (ICT) and nanotechnology and their impending convergence) on the other, there still appears to be a lack of understanding or appreciation of the underlying rationale and implications of this (re)emphasis. 

Secondly, I note that amongst the major factors leading to this revival of interest in agriculture is the increasing relevance and impact of agriculture and food (agri-food) Supply Chain Management (SCM) and the inexorable rise of supermarkets at the global, regional and Malaysia levels. These, coupled with the advancements and applications of biotechnology, on the one hand, and that of ICT, on the other, and their impending convergence (bioinformatics and beyond) are expected to lead to a ‘big bang’ or major structural shift making it a worthy and exciting area of study. Events leading up to the ‘big bang’ and their ramifications will prove to be a boon to those who have anticipated or are prepared for it and a bane to those who are ill prepared along the entire agri-food supply chain. These are very strong and distinct trends that we ignore at our own peril. Thanks.

HAPPY NEW YEAR 2021 TOMORROW!....

By,

M Anim,

Putrajaya,

Malaysia

31 December 2020.