Search
Close this search box.

Agrofood Sector Boosts Malaysia’s GDP with RM45.5 Billion Contribution in Q1 2025

Kuala lumpur: The agrofood sector contributed RM45.5 billion or 11 percent to the Gross Domestic Product (GDP) in the first quarter of this year, according to Agriculture and Food Security Minister Datuk Seri Mohamad Sabu.

According to BERNAMA News Agency, the food services subsector recorded the highest contribution at RM22.1 billion, followed by the crops, livestock, and fisheries subsector with RM13.9 billion, and the food and beverage subsector at RM9.7 billion. Minister Mohamad highlighted the critical role of the agrofood sector, not only as an economic driver but also in ensuring food security and the nation’s future. He emphasized the ministry’s commitment to fostering sustainable growth within the sector.

Despite these advancements, Mohamad acknowledged Malaysia’s challenges in self-sufficiency, particularly in rice production, where the country trails behind Indonesia. Malaysia’s self-sufficiency ratio (SSR) for rice is approximately 65 percent, which presents a significant challenge for the ministry’s efforts to improve this figure. He noted the loss of around 20,000 hectares of padi land due to modernization and land conversion for housing and other developments.

To counteract these developments, the ministry is focusing on reviving idle padi lands in regions such as Melaka, Negeri Sembilan, Johor, Sabah, and Sarawak. By optimizing existing padi areas and employing modern agricultural techniques, the ministry aims to increase yields from the current four to five metric tonnes per hectare to the target of seven metric tonnes per hectare.

The Department of Statistics Malaysia’s Agricultural Census 2024 revealed that nearly half of the country’s farmers are aged 60 and above, posing another challenge for the sector. However, Minister Mohamad noted a positive trend of younger generations becoming interested in padi farming, particularly in large-scale farming areas like Negeri Sembilan and Johor. The ministry is actively encouraging youth involvement by promoting the use of modern technologies such as drones in farming practices.

While acknowledging the difficulty in rapidly replacing older farmers, Mohamad expressed optimism about the increasing number of young people entering the field, particularly in areas like Sabak Bernam in Selangor and parts of Kedah. The ministry’s efforts aim to sustain and enhance the agrofood sector’s contribution to Malaysia’s economy and food security.

Recent News

ADVERTISMENT