BY ADELINE ANTHONY ALPHONSO

Tabled under the theme“ The Rakyat’ s Budget,” Budget 2026 reaffirms Malaysia’ s agricultural backbone, directing renewed attention to food security, selfsufficiency, and the well-being of smallholders, redirecting resources towards those who need them most- farmers, fishermen and rural communities.

CULTIVATING FOOD SECURITY

Among the most striking announcements was the RM2.62 billion allocation for agricultural subsidies and support measures, the largest in Malaysia’ s history.

The sum covers paddy subsidies, cultivation assistance, fertiliser and seed programmes, as well as production incentives. For a sector often vulnerable to global price shocks and climate shifts, this record figure represents more than just financial aid.

Under the Ministry of Agriculture and Food Security( MAFS), significant attention was directed to modernising Malaysia’ s paddy industry. Under its stewardship, the government completed Phase 1 of the Tersier Irrigation System through the Muda Agricultural Development Authority( MADA) in Kedah and Perlis.

They will now embark on the RM1.28 billion Jeniang Water Transfer Project, which will create a new river system to irrigate paddy fields as part of the Program Penanaman Padi Lima Musim Dua Tahun. These measures aim to raise domestic rice output and reduce the nation’ s dependence on imported grains.

To further boost productivity, RM100 million will be allocated to rehabilitate degraded paddy fields, upgrade rural infrastructure, and introduce modern farming models that incorporate technology and mechanisation.

An additional RM20 million will provide 6,400 paddy farmers with foliar fertilisers and fertility materials to enhance soil and crop quality.

For paddy farmers, the government also introduced a new Insentif Penuaian Padi of RM50 per hectare per season to offset diesel costs for combine harvesters. This comes alongside an increase in ploughing and pesticide incentives— to RM160 and RM300 per hectare respectively— raising total average assistance to about RM4,300 per hectare per season, up from RM3,790 previously.

These support measures, however, are not confined to Peninsular Malaysia.

Cooperation between federal and state governments since 2024 has resulted in over 360 agricultural projects nationwide, covering crops, livestock, fisheries and mechanisation. Budget 2026 allocates RM300 million to continue these partnerships, with particular emphasis on grain maise, aquaculture, and rice farming activities in Sabah and Sarawak. The initiatives are expected to strengthen Malaysia’ s food production base while narrowing the development gap across regions.

Sarawak will continue its programmes to enhance beef cattle production and strengthen paddy and rice development. Sabah and Sarawak will each receive the highest federal development allocations— RM6.9 billion and RM6 billion, respectively. These funds include dedicated resources for rural infrastructure, irrigation, and agri-based industry projects.

NURTURING AGRI-ENTREPRENEURSHIP

Beyond direct subsidies, the government continues to invest in

• Budget 2026 links fiscal reform with rural empowerment, driving Malaysia toward sustainable, technology-driven, and self-sufficient agriculture.

• The government allocated a record RM2.62 billion in agricultural subsidies— the largest in Malaysia’ s history.

• Modern irrigation systems like those in MADA areas of Kedah and Perlis symbolise Malaysia’ s move toward smarter, technology-driven agriculture.

the country’ s next generation of agri-entrepreneurs. Through the NextGen Agropreneur Programme under MAFS, RM20 million will be channelled into startup and project development grants to nurture youth-led agribusinesses.

Complementing this is Agrobank’ s RM1.1 billion financing facility, designed to help farmers adopt automation, digitalisation and mechanisation in their operations. To encourage private sector investment, companies involved in new food production activities will enjoy a full income tax exemption for 10 years, while those expanding existing food production projects will qualify for a five-year exemption. Both incentives are available until 2030, ensuring continuity in Malaysia’ s long-term food resilience plan.

FISHERMEN AND FRUIT GROWERS

Support also extends to the nation’ s fishermen, who will continue to receive a monthly allowance of RM300 along with a catch incentive, backed by a RM160 million allocation. The diesel subsidy for fishing vessels will remain at RM1.65 per litre, while RM20 million has been allocated to upgrade boats and replace unsustainable trawl nets with more efficient alternatives.

Meanwhile, Malaysia’ s fruit and plantation producers are not

left behind. RM55 million has been allocated to enhance local fruit production and infrastructure, focusing on key crops such as pineapple, soursop, jambu air( rose apple), and pomelo, as well as new development areas in Sarawak.

THE AGRI-COMMODITY SECTOR

Under the Ministry of Plantation and Commodities( MPIC), the government is committed to bolstering smallholders and reinforcing Malaysia’ s reputation as a sustainable commodity powerhouse. Through the budget, nearly RM2.4 billion will be channelled through FELDA, RISDA and FELCRA to protect more than 720,000 settlers and smallholders.

The recent delisting of FGV Holdings Berhad and its return to FELDA’ s ownership marked a significant milestone, reinforcing the government’ s pledge to restore stability among settlers.

To protect Malaysia’ s leading export commodity, RM63 million has been allocated to counter anti-palm oil campaigns and strengthen sustainable certification, especially the Malaysian Sustainable Palm Oil( MSPO) scheme. Another RM20 million will support startups working on mechanisation and automation tools in collaboration with the Malaysian Palm Oil Board( MPOB) and major plantation companies