Agricultural Sector

In Malaysia, the growth in agriculture sector decreased by 0.2 per cent in 2021 as compared to negative 2.4 per cent in the previous year. The decrease was caused by the commodity sub-sector especially oil palm which recorded a growth of negative 5.6 per cent (2020: -3.6%).

Source https://www.trade.gov/country-commercial-guides/malaysia-agricultural-sector

Agriculture in Malaysia makes up twelve percent of the nation’s GDP. Sixteen percent of the population of Malaysia is employed through some sort of agriculture. Large-scale plantations were established by the British. These plantations opened opportunity for new crops such as rubber (1876), palm oil (1917), and cocoa (1950). A number of crops are grown for domestic purpose such as bananascoconutsdurianpineapplesrice and rambutan.

Source: https://en.wikipedia.org/wiki/Agriculture_in_Malaysia

The agriculture, fisheries, and forestry sectors employ roughly ten percent of the Malaysian labor force and account for about eight percent of the country’s GDP. Palm oil, rubber, cocoa, and wood products account for around half of the output, while other significant contributors include tropical fruits and rice.   

Malaysia is the world’s second largest palm oil producer and exporter after Indonesia. Malaysia’s palm oil production accounted for 26 percent of world production and 34 percent of world exports in 2020. As additional land for palm oil production is unavailable, any increase in national output at this point would have to come from yield and productivity increases. Malaysian palm oil companies also have a significant presence in Indonesia and have invested in palm oil refineries in major markets such as Europe, India, China, and the United States. Many of Malaysia’s largest and most successful companies are palm oil plantation enterprises where the state holds an ownership share.  

Poultry is the dominant protein consumed in the country. The poultry and pork sectors are relatively strong and well developed. Rice is considered a staple product in Malaysia, though the country depends on imports to meet about 30 percent of its needs. 

Malaysia has a relatively strong agricultural research capability, especially in the palm oil sector, and the extension system is effective. The GOM subsidizes rice production through support prices, input subsidies, and consumer subsidies. Although the Ministry of Agriculture focuses on other sectors, almost all new meaningful agriculture investment is destined for the palm oil plantation sector.   Despite ongoing research in this area, there is no commercial production of genetically engineered (GE) plants in the country.