@AGROBiz September/October 2024 | Page 27

Opinion
September-October . 2024 | @ AGROBiz

Opinion

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integration and secure alternative food import sources and trade routes has helped them quickly stabilise the situation and prevent food inflation from spiralling out of control .
In fact , not only has the Qatari government managed to keep prices relatively stable , but their CPI for food and beverages already in Q4 2018 was 101.4 - a 2.8 per cent decrease compared to 104.3 in Q4 2017 - due to the implementation of their strategy ( PSA , 2019 ).
Given that Malaysia ’ s environmental factors are much more forgiving than those in Qatar , a similar strategy of full-speed and full-scale support and modernisation of our agriculture sector would most certainly yield profound , figurative and literal fruits for our nation !
Increased food productivity not only results in a higher local supply that can reduce food costs but also leads to an increased income for small farmers , which , in turn , translates into broader intergenerational impacts for a nation ( Figure 1 ).
Moreover , integrating 4IR technologies into our agriculture sector would create more high-skilled employment opportunities for the youth . Simultaneously , it would promote STEM fields as an educational
and career path for students and further empower our technology sector , a hallmark of an advanced economy .
In the IMD report that observed Malaysia ’ s competitiveness ranking decline , we notice a downturn in the majority of criteria examined by the organisation . Specifically , productivity , efficiency , and technological infrastructure significantly dropped in ranking ( IMD , 2024 ). While these evaluations encompass our entire economy , modernising the agriculture sector would undoubtedly lead to substantial improvements in various areas .
Qatar data is an illustrative example of the possible transformative path from taking agriculture seriously to broader national impacts , as outlined in Figure 1 .
In the years following the initiation of Qatar ’ s comprehensive national food security strategy ( post- June 2017 blockade ), we observe noticeable improvements in the country ’ s innovation index , a substantial increase in hightech exports , and a rise in patent applications by residents . These developments have directly contributed to marked improvements in Qatar ’ s IMD rankings .
As anticipated ( Figure 1 ),
Qatar ’ s Economic Complexity Index has also risen sharply since 2017 , pointing directly towards increased domestic industry breadth and depth and indirectly underscoring that such national impacts are not solely attributed to the country ’ s rich national resources but reflect more profound structural changes .
RISING LIVING COSTS
Also , consistent with Figure 1 , following 2017 , Qatar ’ s unemployment rate sharply declined even further despite already being one of the lowest in the world . Additionally , its Gross National Income per capita has steeply increased since 2020 .
Malaysia is facing various difficulties , including rising living costs and stagnant salaries , among other challenges . However , the modernisation of the agriculture sector will not only improve our food security but also provide opportunities to enhance our nation ’ s economic growth ( refer to Figure 1 again ).
While the government ( s ) have been trying to expedite the process of integrating modern technology into the agriculture sector , progress has been lacking for several reasons , including historical over-reliance on subsidies that are also prone to
leakages .
For this , EMIR Research has suggested that the government should not stop short at monetary support but go the extra mile by comprehensively providing equally important logistical and technological support .
This way , small farmers would have what it takes to utilise the equipment and minimise the interference of intermediaries ( Refer to “ Agriculture Sector Need More Than Subsidies to Boost Productivity and Food Security ”). The suggestion was also formulated in reference to the Qatari government ’ s strategy of providing all-round support to their agriculture industry to help it flourish .
With a successful example at hand in the case of Qatar , which not only helped them weather the storm during the diplomatic crisis but also allowed them to utilise that experience to mitigate the impact of COVID-19 on global trade , there is no reason why we should continue to delay taking decisive action on such an opportunity for our nation . – @ AGROBiz
Chia Chu Hang is a Research Assistant at EMIR Research , an independent think tank focused on strategic policy recommendations based on rigorous research .