How community farming can reduce Malaysia’s growing food import dependency

Ahmad Ibrahim

Food is a sensitive issue.

Any sign of a food shortage inundates social media with horror stories of cartels and more.

Often the poorest people are the most affected. In some countries, stories of rioting are common.

Fortunately, the government has institutionalised reliable food monitoring mechanisms. But the country is not spared from disruptions.

Take eggs for example. The subsidy scheme introduced earlier has been withdrawn as supply stabilises. Despite such success, the country’s dependence on imports remains high.

The value of food imports has been consistently increasing. In 2023, food imports reached about RM80bn. Malaysia’s dependence on imported food raises concerns about food security, and vulnerability to global supply disruptions and price volatility.

The government is actively working to address such challenges through various initiatives. The national agrifood policy for 2021–30 aims to develop a sustainable and resilient agrifood sector.

The gap between food imports and exports has been increasing, leading to a growing trade deficit in the food sector. Several factors contribute, including population growth, changing dietary habits and the rise in living standards.

Malaysia requires a multi-stakeholder approach that addresses financial, educational, policy and infrastructural challenges. The country needs viable government support and policy frameworks.

These would incorporate financial aid, low-interest loans and equipment subsidies for low-income farmers. The government should allocate underutilised government or idle private land for community farming through leasing schemes, encourage private sector participation through tax deductions and simplify permits for urban farming. 

Cooperative farming is one model which involves establishing low-income farming cooperatives to pool resources and share profits. The government can also promote vertical farming, hydroponics and rooftop gardens in cities, while integrating small farms with tourism to provide additional income. 

Training and capacity building are important. The government should foster partnerships with NGOs to train low-income farmers in sustainable techniques, including organic farming, and must not forget digital literacy.

It should teach farmers to use apps for weather forecasts, market prices and e-commerce, and create mentorship programmes pairing smallholders with successful agricultural entrepreneurs.

Market access and value chain integration are critical. The government should connect farmers to supermarkets, restaurants and farmers’ markets. It could develop apps for low-income farmers to sell produce directly and enable farmers to add value – for example, by turning surplus into jams, dried goods and similar products.

Farmers must embrace sustainable and climate-resilient practices. They should promote crop diversification and soil health, use solar-powered irrigation, and practise rainwater harvesting and drip irrigation to reduce costs. 

Larger food companies can fund community farms. There should be research partnerships with universities for high-yield, low-cost farming solutions.

Banks like AgroBank can offer tailored loans. A policy on social protection and safety nets is needed.

The government should create crop insurance schemes and link community farms to school feeding programme initiatives.

Effective monitoring and impact assessment are crucial. The government should use the Internet of Things and blockchain for transparent supply chains. It could establish feedback loops through regular community consultations to refine programmes.

Through such measures, Malaysia can empower its lower-income people through community farming, reducing poverty, enhancing food security and promoting green growth. 

There are challenges. Many cooperatives suffer from poor leadership and weak management skills. Decision-making is often centralised, with limited participation from members. Cases of political interference have eroded trust.

Many join only to access government grants or subsidies. Cooperatives mostly focus on primary production rather than venturing into value-added processing and branding. This limits their competitiveness and bargaining power.

Limited working capital and a lack of diversified income streams are a concern. There is heavy dependence on government support.

Many cooperatives have not adapted to modern agribusiness practices, technology adoption or digital marketing. They remain traditional in their operations and business structures.

Agricultural cooperatives in Malaysia tend to operate in silos rather than forming strategic alliances. This limits economies of scale, market negotiation power and knowledge-sharing opportunities.

The country needs to strengthen governance and leadership. Financial management for cooperative leaders is critical, as are participatory decision-making and accountability.

The government should educate members on the long-term benefits of the cooperative model, and foster a culture of democratic participation and profit-sharing based on contributions, not just subsidies.

It should support cooperatives to venture into downstream activities, food processing, eco-packaging, branding and digital marketplaces. It should also explore agritourism, eco-farming experiences and specialty product branding.

The government should encourage cooperatives to collaborate with private agribusinesses, universities, NGOs and digital platforms, and encourage cooperatives to form federations by commodity type or region. This allows bulk procurement of inputs, collective marketing and lobbying strength.

Cooperatives should adopt digital tools for farm management, cooperative accounting, online marketing and e-payment systems. They should use social media to market directly to consumers.

The government should incentivise entrepreneurial initiatives within cooperatives and provide seed-funding schemes tied to performance milestones.

To thrive, Malaysia’s agricultural cooperatives need to evolve from subsidy-driven collectives to entrepreneurial, value-adding, digitally connected, and member-driven enterprises.

Professor Dato Ahmad Ibrahim is affiliated with the Tan Sri Omar Centre for STI Policy Studies at UCSI University and is an adjunct professor at the Ungku Aziz Centre for Development Studies, University of Malaya.

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