PUTRAJAYA – The agri-commodity sector has contributed RM61.3 billion to the country’s gross domestic product up until the third quarter of this year, said Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah, who is also the plantations and commodity minister, said the sector has recorded a total export of RM160.6 billion and provided job opportunities for almost one million Malaysians.
The deputy prime minister said he would hold a meeting with agri-commodity industry players next week to look at several matters such as the supply chain, including exports and supplies.
Among the sector’s challenges, he noted, is its dependence on foreign labour, which could harm its revenue and exports in the event of a worker shortage.
“We will identify the problems and consult with other parties such as the Human Resources or Foreign Affairs Ministry to formulate a strategy that takes into account our production, the export market, and downstream products,” he told reporters after the Institute of Malaysian Plantation and Commodities convocation today.
Fadillah said the government was aware that continued dependence on foreign labour could affect the industry, especially palm oil, in the long run adding that as of October 30 this year, 150,608 foreigners were reported working in the sector.
As such, he said short-term and long-term courses are needed to increase awareness and skills in machinery use and ensure plantations reach an optimum level by improving their productivity and reducing their dependence on foreign labour.
Fadillah remarked that mastering technologies based on the fourth industrial revolution will ensure the younger generation involved in the industry has the necessary skills to keep up with current technological developments.
“The use of technology can also produce smart smallholder farmers who are able to adopt modern farming methods and innovate apart from increasing the competitiveness of Bumiputera entrepreneurs in downstream industries,” he said.
Fadillah said the technical education and vocational training (TVET) ecosystem also needs to be strengthened to develop a competitive local agri-commodity industry in line with the growing gig economy.
“A strong TVET ecosystem in the industry is crucial to address problems such as high foreign labour dependence. The initiative can spearhead a flexible labour market and further contribute to improving people’s living standards,” he said. – Bernama, December 15, 2022
