10 Cover Story @ AGROBiz | November-December . 2024
10 Cover Story @ AGROBiz | November-December . 2024
BY SHEILA ROZARIO
BUDGET 2025 , presented by Prime Minister Datuk Seri Anwar Ibrahim , lays the groundwork for sustainable economic growth , social inclusivity , and environmental stewardship .
This ambitious fiscal plan reflects the government ’ s commitment to addressing vital national challenges , particularly in food security , rural development , and commodity sustainability .
With a total allocation exceeding RM393 billion , the budget aims to invigorate Malaysia ’ s economic landscape while prioritising unity and prosperity across all demographics .
In line with these goals , the Ministry of Agriculture and Food Security ( KPKM ) received RM6.42 billion , marking a 4.1 per cent increase from 2024 . This allocation underscores the pivotal role of the agricultural sector in ensuring the nation ’ s food security and economic stability .
FOOD SECURITY
One of Malaysia ’ s critical vulnerabilities lies in its reliance on food imports despite abundant fertile land and favourable climatic conditions .
To mitigate this , Budget 2025 significantly increases funding for agricultural initiatives , doubling allocations for collaborative projects with State governments to RM300 million .
These initiatives aim to boost the production of onions in Perak , red tilapia in Pahang , and paddy yields in Negeri Sembilan .
The government has also partnered with private organisations to revitalise 8,800 acres of idle land under regional development authorities .
These lands will host projects such as organic poultry farming , cattle breeding , and cluster crop cultivation , promoting sustainable agricultural practices and reducing dependency on imports .
Additionally , Agrobank has been allocated RM200 million in loan facilities to support agro-food entrepreneurs . This funding is expected to catalyse innovation and sustainability in the sector , ensuring long-term resilience .
Reinvigorating the industry
Budget 2025 exemplifies government ’ s holistic approach to nation-building
“ Budget 2025 significantly increases funding for agricultural initiatives , doubling allocations for collaborative projects with State governments to RM300 million . ”
PADDY CULTIVATION
The paddy industry , a cornerstone of Malaysia ’ s agricultural sector , receives substantial support in Budget 2025 .
Phase 1 of the Five-Season Two- Year Paddy Planting Project in the Muda Agricultural Development Authority ( MADA ) areas will commence , covering 11,000 hectares with nearly RM1 billion allocated .
This project aims to increase paddy yields by 15 per cent and boost the income of 6,100 paddy farmers by 43 per cent .
In Sekinchan , Sabak Bernam , where paddy management practices have yielded up to 12 tonnes per hectare , the government plans to launch a pilot project to procure region-specific fertilisers , including organic variants , through an open tender process .
An additional RM65 million will be used to enhance irrigation and drainage systems in paddy fields and expand FELCRA estates in Sabah and Sarawak .
FARMERS AND FISHERMEN
Farmers and fishermen remain at the heart of Budget 2025 , with RM2.78 billion allocated for subsidies , assistance , and incentives — an increase from RM2.6 billion in the previous year .
The ceiling rate for aid in constructing new fishermen ’ s houses has been raised to RM84,000 in Peninsular Malaysia and RM90,000 in Sabah and Sarawak .
Incentives amounting to RM27 million will be provided to farmers and breeders to increase the production of beef cattle , small ruminants , dairy goats , sheep , and local onions .
These measures aim to enhance rural livelihoods while contributing to national food security .
PALM OIL AND RUBBER The plantation and commodity sectors also see strategic interventions in Budget 2025 .
To fortify the palm oil industry , the government has revised export duty rates for crude palm oil ( CPO ) and introduced a new windfall profit levy threshold of RM3,150 per metric tonne in Peninsular Malaysia and RM3,650 in Sabah and Sarawak .
These measures aim to ensure an adequate domestic supply and promote downstream activities , such as the production of biodiesel and oleochemicals .
In line with sustainability goals , PETRONAS will collaborate with leading palm oil companies to produce sustainable aviation fuel ( SAF ) from palm oil waste .
The government has also allocated RM100 million for replanting ageing oil palm trees , ensuring continued productivity and environmental balance .
In the rubber sector , RM60 million has been earmarked for the Latex Production Promotion for Smallholders programme , while RM20 million will revitalise abandoned rubber estates through land leasing agreements .
A further RM10 million is allocated to combat pests and diseases that have plagued rubber plantations .
TECHNOLOGY AND INNOVATION
Recognising the transformative potential of technology , Budget 2025 introduces tax incentives for automation across agriculture and commodities sectors .
Companies adopting advanced technologies , such as drones and artificial intelligence , will benefit from Accelerated Capital Allowance and income tax exemptions . These incentives aim to reduce reliance on foreign labour while enhancing productivity and competitiveness .
A UNIFIED VISION
Budget 2025 exemplifies the government ’ s holistic approach to nation-building , addressing economic , social , and environmental challenges through strategic investments and reforms .
The agricultural sector , as a critical pillar of this vision , stands to benefit significantly from enhanced funding , modernisation initiatives , and sustainability measures .
Prime Minister Datuk Seri Anwar Ibrahim encapsulated the essence of this vision , stating : “ Indeed , the peace and stability we enjoy must be further fortified , fostering a spirit of unity across all ethnicities and states , radiating Muhibbah and unconditional love throughout Malaysia .”– @ AGROBiz