Malaysia targets agri-commodity modernization via technology and downstream growth

Malaysia's Ministry of Plantation and Commodities is outlining strategic priorities for the agri-commodity sector ahead of Budget 2027. Minister Datuk Seri Dr Noraini Ahmad has identified five key focus areas to strengthen the industry, including empowering smallholders through quality inputs, supporting replanting programs, and accelerating the adoption of mechanization, automation, and artificial intelligence.

The ministry is emphasizing the transition from raw material production to high-value downstream industries. In the cocoa sector, efforts are being made to integrate biotechnology and R&D to create value-added products and support local entrepreneurs. Similarly, the kenaf industry is being positioned as a strategic green economy commodity, with a target to expand cultivation to 2,500 hectares this year, particularly in Perlis.

To address labor challenges and modernize the industry, the ministry is promoting agrotourism and the establishment of the ‘Agri-commodity Squad’ to attract younger generations. The goal is to shift the perception of the sector from traditional farming to high-tech career paths in fields such as pharmaceuticals, cosmetics, and green energy.