Translated from Malay to English - www.onlinedoctranslator.

com
 COPYRIGHT RESERVED 2021

For more information, please contact:

Policy and Strategic Planning Division of the

Ministry of Agriculture and Food Industry
Level 14, Wisma Tani No.28,
Persiaran Perdana, Precinct 4 Federal
Government Administrative Center
62624 Putrajaya
Tel: 03-88701202
Fax: 03-88888548
Website: www.mafi.gov.my
Email: [email protected]

Released on October 24, 2021

FOREWORD FROM

PRIME MINISTER OF MALAYSIA

“ This foundation supports aspirations

and the direction of the
country’s agro -food sector for more
sustainable, resilient and high
-tech. It is to drive economic
growth and improve well -being

the people in addition to prioritizing

”
food security and nutrition
country.

AKO
 National Agro -Food Policy 2.0

Bismillahirrahmanirrahim
Assalamualaikum Warahmatullahi Wabarakatuh,

Greetings Malaysian Family,

Alhamdulillah, thanks be to Allah SWT for His mercy and guidance for the result of this National
Agro-Food Policy document 2021-2030 (DAN 2.0). The country's agro -food sector has recorded
impressive growth in the previous decade.
Despite facing various challenges, the contribution of this sector to Gross Domestic Product (GDP)
has increased by an average of 6.8% annually during the implementation period of the National
Agro-Food Policy 2011-2020.
However, the COVID-19 pandemic that has hit the world has prompted governments to re-evaluate
current policies in line with the global scenario and domestic needs.
Therefore, to continue development in the agro -food sector, DAN 2.0 has been enacted as a
government effort to ensure food security through the transformation of the country's food system.
This policy supports the aspirations and direction of the country's agro -food sector to be more
sustainable, resilient and high -tech. It is to drive economic growth and improve the well -being of
the people as well as prioritize the security and nutrition of the country's food.
DAN 2.0 also supports the national development agenda and current government policies including
the Vision for Shared Prosperity 2030 (WKB 2030), the Malaysia Five Year Plan, the National Fourth
Industrial Revolution (4IR) Policy and the Blueprint (Blueprint) Malaysia's Digital Economy and other
sectoral policies.
I am confident that, through collaboration between central government agencies, state governments as well as the
support of industry movers, the DAN 2.0 objectives will be achieved by 2030.

It will also enable the agro -food sector to remain competitive, thus contributing to the country's
economic development as well as improving the well -being of the people as well as ensuring
environmental sustainability. This goal is in line with the principles of the Sustainable Development
Agenda 2030 (SDG 2030).
Finally, I call on all stakeholders to work together in strengthening food security and advancing the
modernization agenda of the country's agro -food sector.

# KeluargaMalaysia
# Working with the People
FOREWORD BY

MINISTER OF AGRICULTURE AND FOOD INDUSTRY

future foods that are carp

and energy -resistant in
increasing the supply to
nan producers along the
food chain as well as able

provided affordable
nutritious food in line with
the main national food
security framework. ”

D LD
KIANDEE
 National Agro -Food Policy 2.0

The National Agro-Food Policy 2021-2030 (DAN 2.0) is holistically formulated to

continuing the first National Agro -Food Policy (DAN) with a focus on
the modernization and development of the agro -food sector
as well as improving national food security.

AND 2.0 was formulated as a result of engagement sessions with stakeholders such as Government agencies,
academics, industry representatives, non-governmental organizations (NGOs) and the general public.

This DAN 2.0 document has taken into account current issues and challenges including the need for food
system transformation to ensure that the agro -food sector remains significant and relevant in the
country's socio -economic development.
An efficient and resilient food system of the future has the potential to increase income to food
producers along the food chain as well as be able to provide nutritious and affordable food in line
with the core thrust of the national food security framework.

To support the aspirations of DAN 2.0, a policy framework has been established by including
economic, social and environmental elements as key principles. In summary, five (5) policy thrusts
have been formulated with emphasis on modernization and smart agriculture; strengthening market
and product access; human capital development; food system sustainability; as well as the creation
of a conducive business ecosystem and governance.
Special emphasis on food security will continue to be given through the strengthening of the four (4) key
sub -sectors of the agro -food sector.
Strategic objectives under key sub -sectors which include paddy and rice; fruits and vegetables;
livestock; as well as fisheries and aquaculture is to increase the subsistence level (SSL) of each agro
-food commodity and income of the target group.
To achieve these goals, the development of the agro -food sector must be led by the application of
modern technology to increase productivity in line with the development of the Industrial Revolution
4.0 (IR4.0). In addition, the agro -food sector needs to provide manpower from competent youths
and the Government is also committed to increasing private investment in high -impact projects.

In support of the implementation of DAN 2.0, an action plan has been formulated for each strategy
outlined by setting specific outcomes and targets so as to have a greater impact on the lives of the
people. All initiatives will be implemented within the stipulated timeframe by optimizing the efficient
use of resources. Therefore, I call on all stakeholders to support the Government's efforts in the
implementation of DAN 2.0.
Finally, I express my appreciation to all parties involved in the formulation of DAN 2.0 and hope that
the cooperation and relationships established can be continued in the implementation of this policy
to drive the modernization of the country's agro -food sector.

# KeluargaMalaysia
# Working with the People
 INTRODUCTION FROM

SECRETARY GENERAL OF THE MINISTRY OF

AGRICULTURE AND FOOD INDUSTRY

“ This foundation will be an inspiration

and motivating factors for the
private sector and industry players to
work together with the Government
leading the development of the
agro -food sector as a competitive
and modern, hostile sector
ensure success AND 2.

D
HAMID
 National Agro -Food Policy 2.0

The National Agro-Food Policy, 2021-2030 (AND 2.0) was enacted with a vision to
develop a sustainable, resilient and high -tech agro -food sector in an
effort to drive economic growth, improve the well -being of the people
and prioritize food security
and nutrition.

This vision has been translated into a policy statement based on the three main principles of
sustainable development, namely economic, social and environmental. This resolution is in line with
the national development agenda and global goals as intended in the Vision for Shared Prosperity
2030 (WKB 2030) and the Sustainable Development Agenda 2030 (SDG 2030).
The implementation of DAN 2.0 is driven by 6 objectives, supported by 5 thrusts and supported by 21
strategies and 77 action plans that will be realized through various departments and agencies over
10 years to 2030. The policy thrusts include empowering modernization through smart agriculture
and increased research activities, development, commercialization and innovation (R & D & C & I),
strengthening the agro -food product value chain for domestic and international markets, talent and
skilled workforce development, emphasis on sustainable agricultural practices and business
ecosystem facilitation including land use, finance, infrastructure, investment and governance.

At the same time, DAN 2.0 also focuses specifically on 4 sub-sectors including paddy and rice, fruits
and vegetables, livestock as well as fisheries and aquaculture through the implementation of 18
strategies and 58 action plans. The strategy will focus on high value activities along the food value
chain that can generate higher income for the target group and improve the socio -economic status
of farmers, ranchers, fishermen and agri -entrepreneurs.

Therefore, the aspirations of DAN 2.0 will be achieved with the support of all parties involved.
Therefore, I hope this policy will be an inspiration and motivating factor to the private sector and
industry players to work together with the Government to lead the development of the agro-food
sector as a competitive and modern sector, thereby ensuring the success of DAN 2.0.

# KeluargaMalaysia
# Working with the People
Executive summary

AND 2.0 sets the policy direction for 2021-2030 for

Agro -Food Sector

Progress yang continuous in Sector food

supports the three main elements of national development, namely
governance, economy and society. The food system continuously plays an
important role in human society ensuring that the daily nutrition and basic
physiology for human survival is met. As with other countries, the Malaysian
food system operates on the basis of the agro -food sector which is
characterized by a complex network of multiple drivers with different
profiles, responsibilities, interests and expertise. It serves as a food
production industry having a significant impact from the highest levels
flowing to the grassroots of all societies. The economic and social impact of
the industry is evident when in 2019, the industry employs approximately
500,000 people (~ 4.00% of the total workforce), contributes to ~ 3.50% of
the country’s GDP and has a total land use of 5.

With the world economy shifting to an ever -dynamic yet competitive

landscape, while experiencing global pandemic pressures which has and
in turn will disrupt economic activities as well as individual sources of
income, the food security situation is now one of the main focus that will
truly affect the long-term development of the country. To chart further
action for the Malaysian agro-food industry in the coming decade
(2021-2030), amid emerging new trends and challenges, the National Agro-
Food Policy 2.0 (AND 2.0) will replace the National Agro-Food Policy 1.0 (AND
1.0) as the document a comprehensive basis for the entire agro -food
industry.

1
Executive summary
AND 2.0 was formulated through extensive consultations and engagement
sessions with key stakeholders across the public sector, private players and
industry experts to enhance buybacks resulting in a high revenue impact.

Main Policy Document Action Plan Document

This document includes: Documents this explain

1. 2030 goals for the agro -food details of all action plans
industry contained in
2. Achievement industry Key Policy Documents, which
agro-food during the period include the following: 1. Rationale
AND 1.0 (2011-2020)
3. Issues and challenges of the agro 2. Description
-food industry 3. Timeline
4. The main differences of AND 2.0 vs 4. Target Group
AND 1.0 5. Leading Division/Agency
5. The relationship between AND 6. Leading Agency
2.0 and other relevant policies 7. Key Results
8. KPI
6. AND 2.0 framework
7. Background, description,
strategy and title of action plan
of 5 policy cores and 4 sub
-industries

For completeness, readers are recommended to read both the Policy

Document and the Action Plan together.

2
Executive summary
The goal of the agro -food sector is to incorporate economic, social elements
and the environment are key targets to be achieved ahead of
in 2030

The intention of DAN 2.0 is to increase the country's economic

contributionwhich will be measured through parameters such as the
contribution of the agro -food sector to the national GDP, average annual
value -added growth, food trade balance CAGR and food loss.
Sector Contribution Average Growth
Agro -food to Annual Value Added
GDP of the country

2019 2025 2030 2019 2025 2030

3.5% 3.6% 4.3% 3.1% 4.5% 5.0%

CAGR Balance
Loss of Food
Food Trade

Creating a system for

2019 2025 2030
accurate measurements and

- 6.7% 2.8% 2.9% reduction of food loss

along the value chain

AND 2.0 also aims to improve the social well -being of the people
particularly from the aspects of socio -economic level, inclusion and food
availability.

Income Level Leftovers Participation

Manufacturer and Quality Local in
Food Nutrition food
Monthly income Malaysia is committed Provide more
food producers reduce waste many opportunities
the higher, the food and work, recreation,
majority of the group improve quality education and
income B40 food nutrition community farming
for end users to the local
3
Executive summary

Subsistence Level (SSL)

Commodities
2019 2025 2030
Main dish
Rice 63.0% 75.0% 80.0%
Fruits 78.2% 80.0% 83.0%
Vegetables 44.6% 70.0% 79.0%
Seafood 93.0% 95.0% 98.0%
Beef 22.3% 50.0% 50.0%
Chicken/Duck 104.1% 120.0% 140.0%
Chicken/Duck Eggs 119.1% 114.0% 123.0%
Fresh milk 63.0% 100.0% 100.0%

Environmental sustainability will also be emphasized in DAN 2.0 which

will be measured through parameters such as Agrofood GHG, fish stock
management and biodiversity.

Stock management
GHG Agrofood
Fish
Agrofood sector
contributed to By 2030
reduction of gas emissions
Protects a total of 10.00% of
greenhouse (GHG)
the local maritime area

Prepare Zone B towards

Biodiversity trawl free zone

Reached a ratio of 60:40

Sector development
landing of catch fish
continuous agro -food
to the landing
through consolidation
aquaculture
forest conservation and
biodiversity

4
Executive summary

The performance of the Agro-Food Sector from 2011-2020 is assessed for

understand the current landscape

Description of GDP Contribution by Sector

The contribution of the agro -food sector to the value -added of the
agriculture sector increased from 41.78% in 2010 to 48.02% in 2020
indicating the potential of the agro -food sector in making a higher
contribution to GDP.
However, the GDP contribution of the agricultural sector in the national
economy has decreased in 2020 compared to 2010 and this indicates that
there is a reduction in dependence on this sector.

Rate
Growth
2010 2020f
Sector/ Annual Average
Details (CAGR) - (%)
RM RM
% % 2010 - 2020f
Million Million
Agriculture 83,756 9.26 107,313 7.18 2.51
Plants
48,764 5.39 55,782 3.73 1.35
Industry

food 34,991 3.87 51,531 3.45 3.95

Mining
96,892 10.71 104,062 6.97 0.72
& Quarrying
Manufacturing 207,245 22.91 329,995 22.09 4.76
Construction 33,444 3.70 69,862 4.68 7.64
Services 474,984 52.51 869,984 58.24 6.24
Import duty 8167 0.90 12,598 0.84 4.43
Total value
plus 904,489 100.00 1,493,814 100.00 5.15
(RM Million)

Note: 2020f stands for projection for 2020.

5
Executive summary
Malaysia's Agro -Food Trade Balance
Major contributors to agro -food imports include coffee, cocoa, tea, spices
and products, animal feed, various edible products and preparations as well
as cereals and cereal preparations.
The increasing trade deficit for foodstuffs indicates that Malaysia relies on
the global value chain to support the domestic needs of the agro -food
sector.

Malaysia's Agro -Food Trade Balance (2010 - 2020)

70,000.00
(RM) Million

57,697.97
60,000.00

50,000.00 45,318.66

40,000.00 36,479.19
30,188.87
27,310.76
30,000.00
18,096.12
20,000.00

10,000.00

-
2010 2015 2020
(10,000.00)

(20,000.00) (12,092.75)
(18,007.90)
(30,000.00) (21,218.78)
Agrofood exports Agro -food imports
Trade Balance

Source: MAFI (2020)

6
Executive summary
Employment and Productivity in the Agro -Food Sector
The total employment rate in the agro -food sector has decreased due to the
reduction in the involvement of farmers, aquaculture farmers and fishermen
while the employment rate in the livestock sub -sector has been found to
have increased.

Despite the reduction in employment, labor productivity in the agro -food

sector as a whole has increased in 2020 compared to 2010. This is due to the
use of labor -saving technologies and techniques through mechanization
and automation of food production activities.

Rate
Growth
Employment in '000
Year Annual Average
(CAGR) - (%)
2010 2020f 2010 - 2020f
Use Energy in
535.70 484.52 (1.00)
food
% Total Employment 4.50 3.21 (3.32)
% Use energy
33.17 29.50 (1.17)
Agriculture

Productivity of each
Employees (RM price in 65,318.28 106,354.74 5.00
2015)
Employment in Agriculture 1,614.90 1,644.15 0.18
% of Agricultural
13.57 10.90 (2.17)
Employment

Productivity of each
Employees (RM price in 51,864.51 65,269.59 2.33
2015)
Employment (all Sectors) 11,899.50 15,083.90 2.40
Productivity of each
Employees (RM price in 76,010.67 99,033.67 2.68
2015)
Note: 2020f stands for projection for 2020 7
Executive summary
Agro -Food Production and Consumption
Consumption of most major agro -food commodities other than rice is at a
high rate compared to the rate of production indicating that consumption is
able to surpass domestic production if this trend continues. In addition, diet
trends in the past decade are also seen to play an important role in food
consumption trends. The increasing global trend in reducing the intake of
carbohydrates and rice as an energy source also affects the total
consumption of rice in Malaysia.

Agro -Food Production and Consumption (2010 - 2020)

12,297.21
12,146.77
11,418.00

10,532.00
10,397.00

10,243.44

14,000.00
'000 (MT)

12,000.00
10,000.00
8,000.00
6,000.00
4,000.00
2,000.00 153.56
-
(2,000.00) 2010 2015 2020
(728.77) (1,765.21)
(4,000.00)
Agro -Food Production
Agro -Food Consumption
Production-Consumption Gap

Source: Malaysian Agro -Food Statistics

8
Executive summary
Subsistence Level of Major Agro -Food Commodities

From 2010 to 2020, rice, vegetables and chicken/duck eggs experienced an

increase in SSL, while other major agro-food commodities experienced a
decrease. For agro -food commodities, only chicken/duck meat and chicken/
duck eggs can remain above SSL 100.00% from 2010 to 2020. SSL fresh milk
was found to have decreased sharply by 37.35% in 2020 compared to 2010
due to increase in consumption.

Average Growth Rate

2010 2020f
Annual (CAGR) - (%)
Sector/ Details
% % 2010 - 2020f

Rice 62.95 63.00A 0.01

Fruits 83.73 79.50 (0.52)

Vegetables 49.61 51.50 0.37

Beef 30.12 21.72 (3.22)

Goat meat 11.89 10.72 (1.03)

Pork 95.25 91.62 (0.39)

Chicken/Duck 105.55 104.51 (0.10)

Chicken/Duck Eggs 114.63 116.60 0.17

Fresh milk 99.60 62.40 (4.57)

Fisheries 94.89 93.51 (0.15)

Note: 2020f stands for projection in 2020.

9
Executive summary
Per Capita Consumption of Major Food Commodities

Based on the consumption of major agro-food commodities from 2010 to

2020, rice, fruits and pork have recorded declines. Meanwhile, fresh milk
commodity was found to show the highest consumption growth rate
followed by mutton and chicken/duck meat.

This is due to changes in consumers' diets that are influenced by various

factors such as price, health, individual nutritional needs, increase in food
type choices as well as the discovery of new food products or alternative
foods.

Growth rate
2010 2020f Annual Average
Sector/ Details (CAGR) - (%)

KG/ year KG/ year 2010 - 2020f

Rice 79.6 76.5 (0.40)

Fruits 93.0 78.0 (1.74)

Vegetables 54.7 65.1 1.76

Beef 5.6 6.1 0.86

Goat meat 0.8 1.2 4.14

Pork 19.9 18.5 (0.73)

Chicken/Duck 35.0 46.8 2.95

Chicken/Duck Eggs* 295.0 361.5 2.05

Fresh milk** 0.7 2.1 11.61

Fisheries 45.5 51.5 1.25

f- Projection
* Eggs
* * Liter

10
 Executive summary

The agro -food sector around the world including Malaysia is facing off
with unique issues and challenges
The agro -food and agriculture sectors generally play an important role in the
economic and social development of a country. However, the sector has various
challenges that need to be addressed.

GLOBAL ISSUES

Lack of Natural Resources

Land for agricultural activities is increasingly limited due to

unsustainable forest clearing activities as well as the ability to
damage the environment, resulting in soil erosion and in turn
affect the quality of drinking water. In addition, 71% of
freshwater resources globally are used for agricultural
activities and this makes it one of the major contributors to
water pollution from the use of pesticides and other
pollutants.

Agricultural Productivity and Innovation

Source supply food at country build

mostly dependent on revenue from small -scale food
producers even though their productivity levels are still low.
Total Factor Productivity (TFP) between 2006 and 2015 has
declined as food producers continue to convert forests and
grasslands to farms to meet food and fodder demand.

11
Executive summary

Demographic Change and Shifting Nutrition Trends

Per capita food demand is expected to increase and a shift

from the consumption of staple grains to other diets such as
protein -based or vegan diets. Higher incomes of urban
residents lead to a tendency towards the consumption of fast
food or foods that are easily bought in stores. Consumers
also take into account the price, taste, convenience,
nutritional value and method of food production.

Food Waste and Loss

Food loss is the process of food being discarded or burned
along the supply chain due to inefficient management during
production, post -harvest handling/storage and processing.
Food waste refers to the reduction of food items as a result
of the decisions and actions of retailers, food service
providers and consumers. Among the Sustainable
Development Goals (SDGs) of the United Nations is to reduce
food waste and global food loss to half per capita by 2030.

Climate change
Global warming can threaten agricultural practices through
rising sea levels that cause reduced soil size and saltwater
infiltration, pressure on water supplies, significant changes in
peak temperatures that can reduce crop yields, changes in
rainfall frequency that can cause droughts or floods and
increase the frequency of natural disasters. .

12
Executive summary
The challenges faced by the global agricultural sector are also of concern to the
Malaysian agro -food sector. The issues and challenges identified will be
fundamental in the formulation of DAN 2.0.

Low Production Efficiency and Cost

High Production Affects
Farmers' Income
Automation in the industry remains low as small -scale
food producers tend towards traditional farming
methods due to financial assistance as well as
knowledge transfer. In addition, reliance on imported
agricultural inputs and middlemen also reduces the
income levels of small -scale food producers.

Limited Value Added Products and Products

The existence of mismatch in demand and production

in the food production value chain because demand
from mid -chain and downstream drivers does not
translate accurately to upstream drivers. The lack of
interest in investing in developing value -added yields
and products is likely due to low profit perceptions as
well as high risk by investors.

Unconducive Business Environment

Food producers face issues such as the short duration

of Temporary Occupancy Licenses (TOL), limited
extension services due to lack of officers in the field as
well as inadequate facilities such as cold storage
rooms. Some acts and regulations were also found to
be irrelevant and appropriate to today’s industry.

13
Executive summary

Threats from Natural Disasters, Diseases and

also Unsustainable Agricultural Practices
Natural disasters such as flash floods and pest attacks
as well as diseases are challenges faced by food
producers. In addition, unsustainable waste
management and uncontrolled use of pesticides can
affect environmental biodiversity. Fish supply is also
declining due to overfishing by local fishermen as well
as illegal foreign fishermen.

Lack of Youth Involvement in the Sector

food
Youths have a poor perception of the agro -food sector
which is labor intensive and has low returns compared
to white collar jobs. Young agropreneurs also face
challenges such as land availability and loan
applications without collateral. In addition, labor cost
competition from foreign workers also reduces
farmers' income.

Limited Financial Assistance to Food Producers

Financial institutions find it difficult to provide financing to
industry movers due to the high -risk state of the agro -food
sector. Risk solutions such as insurance plans to protect
individuals, small -scale food producers and agropreneurs from
financial issues and losses due to unforeseen events are also
limited.

14
Executive summary

Issues related to Coordination and Cooperation

The absence of an integrated center or database for agro -food
statistics in MAFI that can be used as a reference source for the
entire industry. Other issues identified were the coordination of
information between various stakeholders such as overlapping
roles between agencies under MAFI, agencies outside MAFI that
often work in silos as well as lack of communication between the
federal and state governments especially on land issues. In
addition, there is no one -stop information center that can provide
information and services to investors.

Issues in High Value Commodities (HVC)

HVCs such as swiftlet nests, ornamental fish, seaweed, herbs and
spices, floriculture, mushrooms, guarana, kelulut honey, durian,
coconut and pineapple have been identified to have potential for
development. However, HVC has low financial investment from
investors due to low prospects. Investment in HVC is high risk
because demand is volatile compared to staple commodities and
production is in small quantities making automation difficult to
apply. In addition, HVC also faces high competition from
neighboring countries and needs strong marketing and market
access to grow. Finally, most HVCs are still not well regulated and
are likely to cause harm to health and environmental pollution.

Impact of the Contingency Crisis

Various restrictions imposed by the government during the

Movement Control Order (PKP) as a result of the COVID-19
pandemic have resulted in disruptions in the supply chain,
reduction of agricultural labor and business productivity. In the
long run, this situation results in food producers having low
purchasing capacity for agricultural inputs for subsequent crop
seasons due to limited cash flow, further impacting food demand
and disruptions along the value chain.

15
 Executive summary

The entire DAN 2.0 framework includes several elements including policy
statements, policy principles, policy objectives as well as policy cores. It
aims to provide an inclusive and extensive guide to the agro -food sector
modernization agenda during the implementation period from
2021 to 2030.
Policy Statement:
Agro -food as a sustainable, resilient and high -tech sector that can drive economic
growth and improve the well -being of the people as well as
prioritize food safety and nutrition

Economics Social Environment

Producer Welfare Paradigm Shift towards a

Principle

Competitive and Innovative Food and Sustainable and Sustainable

Agro -Food Sector Inclusion in Food System
Sector Development with Climate Change
Increase income growth and better quality of life for producers
food
Improving production output as well as harvest quality through improvement
productivity
Creating a more agile and resilient value chain with value activities
Objective

plus high

Improving the security and nutrition of people's food

Drive economic, social and inclusive growth

Promote sustainable food consumption and production practices

Strengthen
Domestic Market, Providing
Increase
Improving Results Build Ecosystem
Supporting
Basic Terrace

Practice
The output That talent Business
Modernization Agriculture and
Have Meet the Conducive
and Agriculture System
High demand Request and Framework
Smart The food
and Products Industry That institution
Sustainable
Oriented Strong
Export

STRATEGY STRATEGY STRATEGY STRATEGY STRATEGY

STRATEGY FOR RICE AND RICE SUBSECTORS, FRUITS

AND VEGETABLES, LIVESTOCK AND FISHERIES

16
Executive summary
The 3 main principles of DAN 2.0 include:

i. Competitive and Innovative Agro -Food Sectorthrough various

initiatives covering business facilitation, technological advancement
and the optimal value chain
ii. Food Producer Well -Being and Inclusion in Sector Development
which will directly affect the overall development of the agro -food
sector with emphasis on improving living standards, quality of life
and attractiveness of the agro -food sector and balancing the
distribution of wealth across the country

iii. Paradigm Shift towards a Sustainable and Climate Change Food

Systemtowards sustainable agriculture and food systems so that the
development of the agro -food sector does not affect the
environment
This policy framework includes 6 main objectives, namely:

Increase Creating
Improving
growth a value chain
production output
income and more agile and
as well as the quality of the harvest
the quality of life Resilient
through improvement
better for with value activities
productivity
food producers plus high

Drive Encourage practice

Improve
growth use and
security and nutrition
economic, social and food production
folk food
inclusiveness sustainably

17
Executive summary
5 basic terraces and 4 main sub -sectors which are key to food security
have been identified to support the policy framework and development of
the agro -food sector for the next 10 years as follows:

5 Basic Core

PROVIDING
SUPPORT BUILDING-
ECOSYSTEM

BASIC THRUST 5
MODERNIZATION KAN BAKAT
BUSINESS
AND AGRICULTURE THAT MEETS
THE CONDUCIVE
PINTAR REQUEST
AND FRAMEWORK
INDUSTRY
THE INSTITUTION
STRONG

STRENGTHENING THE MARKET INCREASE

BASIC THRUST 4
BASIC THRUST 2

DOMESTIC, INCREASE PRACTICE

THE OUTPUT AGRICULTURE AND
HAVE A DEMAND FOOD SYSTEM
HEIGHT AND PRODUCT SUSTAINABLE
ORIENTED
EXPORT

4 Major Subsectors

SUBSECTOR
PADI SUBSECTOR FRUITS
AND RICE AND VEGETABLES-
VEGETABLES

SUBSECTOR
SUBSECTOR
FISHERIES AND
LIVESTOCK
AQUACULTURE

18
Executive summary

SUPPORT Strategies under Core 1:

MODERNIZATION AND
SMART AGRICULTURE
- Intensify R & D & C & I as a
catalyst for the modernization of
The use of technology can
the agro -food sector with
contributed to increase fiscal and non -fiscal
improving the quality and resources for the development of
quantity of crop yields, R & D & C & I in the industry,
thereby increasing reducing the time taken for the
productivity. Through various intellectual property certification
process and intensifying the exchange
the smart agricultural
knowledge
technology available today, food internationally
producers are able to handle
- Increase the adoption of
issues of pests and technology and automation in
diseases well as well the agro -food sector through
making process assistance to improve feasibility
livestock and cultivation and
the adoption of technology as well
more controlled and efficient.
as increasing the capacity of food
Increased modernization as well producers
in line with the country's - Creating a conducive ecosystem
aspirations through the 12MP for R & D & C & I by strengthening
in driving the industry working relationships between all
entities
national value production
towards 4IR and the - Intensify innovation programs
agro -food sector is and activities to support
agrotechnological advances by
between a given sector
strengthening the network between
focus. basic research outputs and industrial
applications, increasing the rate of
contribution by R & D & C & I towards
sector modernization
food

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Executive summary

STRENGTHENING Strategies under Core 2:

DOMESTIC MARKET,
INCREASING RESULTS
THE RELEASE - Enhance the development and
HAVE commercialization of high value
products through better
HIGH DEMAND
collaboration and collaboration
AND PRODUCTS
with the private sector with the
ORIENTED
aim of strengthening the local
EXPORT
market and bridging the trade
Interest for deficit gap
strengthen and - Increasing exports of targeted
diversify exports products and products, drive the
in the agro -food sector country's economic growth through
should be given priority, as income generation and positive
this is not only beneficial spillover effects of various other
this sector even to the sectors
national economy through
- Provide support to the local
the existence of spillover effects food industry
to various other sectors. by strengthening domestic
Going forward, focus on products by enhancing the role of
intensifying value activities facilitating local food producers
high plus and investment along the value chain
in targeted areas with high
growth potential can be - Strengthen the role of MAFI in
among the drivers leading agriculture -related
investments with a focus towards
key growth in the agro -food smoother facilitation for existing as
sector. This will stimulate well as potential investors
competitiveness and
revenue growth
for food producers
in this sector.

20
Executive summary

DEVELOP Strategies under Core 3:

THE TALENT
MEET - Attract and retain young talent
REQUEST to obtain
INDUSTRY the participation of more youth who are
technology literate and have the
Empowerment of human
potential to innovate and
capital in the agro -food
modernize the industry
sector plays a role
important in long -term - Projecting demand and
development because it is developing a highly skilled
able to improve workforce in the agro -food sector
industrial productivity and to enable long -term planning and
efficiency, generating high implementation of initiatives related
revenue and income as well to human capital development in
spur innovation and the industry
the driving capacity at
along the value chain. - Increase the inclusion of the agro
-food sector so that the benefits
Develop a solid talent as a
derived from
foundation towards
industrial growth will be shared
a stronger agro -food
with a larger population
sector, the availability to
adapt to modern
technology and be able to - Improve the efficiency and
increase the quantity and technical services of officers
quality of production to meet development for
food security and safety mincrease technology transfer
capacity to manufacturers
goals in
food to increase the adoption
Malaysia.
of technology and automation

21
Executive summary

INCREASE Strategies under Core 4:

AGRICULTURAL PRACTICES
AND SYSTEM
- Reduce food loss and wastage
THE FOOD
SUSTAINABLE
along the value chain by
In the process of increasing efficiency
resource use
achieve security goals
food, sector - Drive the wider adoption of
agro -food is necessary sustainable agricultural practices
apply sustainable practices with consumption
to maintain a balance biosource across the value chain of
food production, especially on
between the environment
farmland for purposes
and ecosystems with
improve food safety and
ensure that
reduce environmental
industrial growth does not
pollution
result in pollution and
environmental damage. - Promote the conservation and
preservation of biodiversity and
To meet the increase natural resources for agriculture
food demand in the coming sustainable to preserve and
decade and conserve biodiversity that will
next, the sector sustain the benefits of biodiversity
food need to move towards to humans including food
more sustainable methods of security, nutrition and
food production life
to minimize waste - Develop a sustainable and
and internal pollution healthy food system which takes
efforts to develop the sector into account nutritional security to
which is more sustainable. enable the population in Malaysia
to have access to a healthy and
balanced diet

22
Executive summary

PROVIDING Strategies under Core 5:

ECOSYSTEM
THE BUSINESS
- Strengthen land -related
CONDUCIVE AND facilitation and support for the
INSTITUTIONAL FRAMEWORK
agro -food sector to increase
SOLID efficiency
use of land resources as well as
To draw and
providing better land security
maintain interest
food producers, investors
and the private sector so - Redesign the allocation of funding
continue to join the sector
funds and
strengthen financial services to
agro -food, ecosystem
food producers through the
business needs to be
introduction of insurance or
conducive for these different
financial schemes to provide a form
movers to operate and run of financial safety net
the business
in that sector.
- Drive end -to -end digitization
Part of the thing in the value chainby
major in the ecosystem transforming information and
is the holding and ownership products into digital information
of land; regulatory matters
such as norms, rules and - Streamlining and strengthening
regulations, financial services, the governance of the agro -food
physical infrastructure sectorto ensure that the country's
and digital interweaving; as well as food value chain operates efficiently
a holistic value chain network, and effectively in a safe, secure and
especially between the upstream strong environment
and downstream segments. - Increase investment in agro -food
infrastructure to facilitate and
improve the business environment
for food producers and agro -food
stakeholders

23
Executive summary

RICE SUBSECTOR AND Subsector Strategy:

RICE
- Boost productivity through better
Paddy and rice are land and water use management
important subsectors for with an emphasis on improving land
produce staple foods and water use efficiency for higher
Malaysians have productivity
experienced an increase
in SSL from 60.3% - Leverage the potential of local
to 63.0% from 2010 to specialty rice varieties by developing
2019. a local specialty rice segment to
strengthen choice in variety diversity by
To improve
achievement of this subsector, issue rice farmers
major such as low income
- Restructure existing financial
of paddy farmers, high
assistance towards empowering
production costs, lack of
producers in business decision
mechanization and makingby refining current input and
automation, environment output assistance for paddy farmers
a business that does not to promote optimization of
conducive and post -harvest agricultural operations based on their
losses should be reduced. own knowledge and experience.

Rice sub -sector strategy and

rice intends to
increase the number - Involves the participation of more
private sector movers in
production, improve
along the value chain by encouraging
subsistence level,
the participation of private movers of
improve the efficiency of the various scales along the value chain of
use of natural resources and the paddy and rice sub -sector in line with
improve standards current developments.
life and stage
- Promote, encourage, train and
income of rice farmers for
nurture the younger generation to
the next 10 years be involved in the paddy and rice sub
come. -sector by enhancing existing
opportunities through disclosure of
sub -sectors to such groups

24
Executive summary

FRUIT SUBSECTOR- Subsector Strategy:

FRUIT AND VEGETABLES-
VEGETABLES - Intensify gene editing research
Some major issues have been by developing one of the genetic
identified as engineering methods namely
obstacles to genome editing to explore
subsector development opportunities on the potential
the. This includes development of biotechnology in
fruit producer income- the development of the fruit and
vegetable sub-sector
low fruits and vegetables,
output
can be added limited value, - Efficient long -term land
land use competition and management involving all
production costs industry drivers across the
high as well as the level value chainto reduce challenges
of technology adoption in land resource management
which is still low. other than integrating and

Strategies for the fruit adjusting the actuator along

and vegetable sub-sector- the value chain
vegetables in this basis
- Promote sustainable agricultural
intends to
practices and food production to
increase the number
enhance the integration of
production, improve sustainability elements, especially
subsistence level, export value
through
higher, the adoption of good agricultural
increase efficiency practices and strengthening the
land use as well as add network between food production
good standard of living and and consumers
income level of producers
- Boost the growth of high value
fruits and vegetables-
fruit and vegetable crops as one
vegetables for 10 years that
of the major contributors to the
next.
development of this sub -sector in
the long run

25
Executive summary

SUBSECTOR Subsector Strategy:

LIVESTOCK
- Enhancing growth and
Financial constraints
sustainability in the poultry/duck
is one of the main problems industry by addressing
to develop environmental sustainability issues
or improve and capitalizing on future
infrastructure and barn facilities opportunities to
in addition to health issues international market growth for the
animals, safety poultry/duck industry
food from animal products, - Facilitate market access for the
population decline ruminant industry to
cattle base as well new entrepreneurs with
dependence on facilitate the challenges faced by new
imported fodder entrepreneurs joining the ruminant
needs to be addressed for industry.
drive this subsector to - Increase the number of ruminant
front. livestock with specific strategies to
Subsector strategy objectives increase the number of ruminant
purposeful livestock livestock in the country
increase the level - Mitigation and control of livestock
hygiene, prevent deaths and losses due to disease to
animal diseases, ensure the safety of beef, eggs and
improve practice dairy products for local consumption
good farming, and suitable for export
stimulate productivity and
production as well - Reducing dependence on animal
reduce the deficit feed importsto reduce
trade for
the development of this subsector dependence on animal feed and
in the future. imported animal feed additives for
the intensive livestock industry that
tends to be vulnerable to

global price volatility

26
Executive summary

SUBSECTOR Subsector Strategy:

FISHERIES AND
AQUACULTURE - Ensuring adequate, affordable and
safe fishery productsdby balancing
Some of the key issues are fish resources in the market with the
identified including aim of changing the trend of fish
reduction and consumption from the majority of
increased pressure marine fisheries to a more balanced
against coastal sources ratio between marine fisheries, inland
beaches, increased fisheries and aquaculture
production costs for fisheries
marine and aquaculture, - Improving the sustainability
biosecurity and compliance issues of fishery resources for
related to maintain and replenish existing
aquaculture farms and stages fish stocks and
the relative income of fishermen
promote the safe and sustainable
use of fish products
the low.
- To increase the contribution of the
Fisheries strategy and fisheries sub -sector to the national
aquaculture aims to maintain economy to improve the income of
a level of self -sufficiency, food producers and the economic
offset the ratio contribution of the fisheries and
fish landings, aquaculture sub -sector as a whole by
increase efforts helping food producers diversify their
monitoring, control and sources of income and
surveillance (MCS) in the marine
increase the market accessibility of
environment, encouraging
Malaysian fishery products to the
use of fish resources
global market
safe and sustainable along
the value chain and - Prioritize good governance across the
upgrade fisheries and aquaculture sub -sectors
to improve cooperation and
life and stage
communication between stakeholders
community income
such as state governments,
fisheries for 10 years enforcement agencies, fishing
that is coming. communities and aquaculture farmers
as well as the general public for positive
outcomes

27
 Executive summary
The DAN 2.0 framework summary involves the following elements:

1 Statement
Basic 3 Principle
6 Objective

5 Then 21 Strategy
77 Slowly
Action

18 Strategy
Subsector 58 Action plan
Subsector

To ensure success in the implementation of DAN 2.0, a governance structure has

been formulated with the theme of 5 policy thrusts with the involvement of all
agencies and divisions of MAFI as well as key stakeholders of the sector
food
NATIONAL AGRICULTURAL ADVISORY COUNCIL (MPPN): YB MENTERI MAFI

Internal MAFI Leading Ministries and Agencies Industry Drivers

POLICY COMMITTEE: KSU MAFI

Internal MAFI

The market Sustainability Ecosystem

Modernization and
Local and Nurturing Talent and System Business &
Smart Farming
Export Products Food Institutional Framework

Chairman:
Chairman: Chairman: Chairman: Chairman:
Director
SUB BPP SUB BDI SUB DPS SUB DPS
BPKLP
Key members:
Key members: Key members:
Key members: IPB, MAQIS,
IPB, BDI, FAMA, Key members: ITTP, IPB, BDI,
IPB, DPS, BDI, DOA, DVS,
MARDI, DOA, DPS, IMAT, IPB, DOA, DOF, DVS,
MARDI, DOA, DOF, FAMA,
DVS, DOF, DOA, DVS, DOF, AGROBANK,
DVS, DOF, LPP, KADA,
LKIM, MARDI, LPP, LPP, PUU,
LPNM, MADA, MADA, LPNM,
AGROBANK, MOHR, MOHE, LPNM, MADA,
KADA, IADA, LKIM,
LPP, MAQIS, MOE, MOF KADA, IADA,
LPP, LKIM BIOECONOMY,
LPNM LKIM
IADA
Secretariat: Secretariat: Secretariat: Secretariat: Secretariat:
BPP BDI BPKLP DPS DPS
28
Executive summary
In addition, a detailed implementation framework for all DAN 2.0 action
plans has been developed to provide guidelines at the highest level
consisting of details of the action plans including the implementation period,
lead divisions/agencies and proposed implementing agencies. The
implementation framework has been prepared in the following format:

Term Term Term Section/

Strategy Agency
Short Simple Long Agency
Executor
(1-2 years old) (3-5 years old) (6-10 years old) Leader

Agency below
Agency in
Title MAFI day
Title of Action Plan down
Strategy other ministries
MAFI
related

The main findings of the stakeholder engagement session for the

implementation of DAN 2.0 are as follows:

Management and monitoring project in a way

comprehensive is the basis for good project
Management and
Monitoring implementation. Therefore, it is important to explain the
Project reporting mechanisms and guidelines to the stakeholders
involved in the implementation of the policy.

Database management is one of the key supports that

is important in project implementation and
Management monitoring. It needs to be strengthened through an
Database integrated platform and collaborative efforts from all
stakeholders involved in policy implementation.

Role and responsibility each party

Uniformity stakeholders in the implementation of DAN 2.0 should
Understanding be effectively communicated at all levels. This is to
about ensure that stakeholders at all levels are clear and
Role
understand the key goals and aspirations of their
respective policies, roles and responsibilities to reduce
duplication of work.
29
Executive summary

Clear communication between stakeholders involved

in policy implementation is important to facilitate
Communication between
Party project implementation and monitoring. It also aims to
Interested reduce silo work and duplication of work which in turn
can optimize costs in project implementation.

Conclusion

The changing global and regional landscape has had a significant impact on
the level of national food security. Similarly, there is a change in perception
on the importance of the agro -food sector as an economic sector in the
national development process. Thus, DAN 2.0 plays a role as a framework
that unites all stakeholders involved to achieve cohesive collaboration based
on the trends that have been identified and able to contribute to make the
agro-food sector to a better level. AND 2.0 is developed taking into account
all relevant policies at the national and international levels including key
policies such as the Vision for Shared Prosperity 2030, the Twelfth Malaysia
Plan and the Sustainable Development Goals (SDGs).

Through effective implementation, the agro -food sector and Malaysia will
be able to achieve a higher position in the global food security index in the
future with emphasis on the well -being of the people as the basis of growth
and in line with the Vision 2030 Shared Prosperity agenda.

“Agro -food as a sustainable, resilient and high -tech sector

that can drive growth
economy and improve the well -being of the people as well
prioritize food security and nutrition ”
30