Agriculture
Current Situation
Agriculture is one of the key economic sectors in the North, with its share of employment at 21.7% for Perlis, 19% for Kedah, 18% for Perak and 1.4% for Pulau Pinang1. Current agricultural activities in the Northern Corridor encompass the cultivation of paddy, the planting of commercial crops such as oil palm, rubber and sugar cane, and the cultivation of fruits and vegetables. Out of the total 800,000 hectares of prime agricultural areas2, almost 42% is used for paddy, with approximately 49% for oil palm and 3% each for rubber and sugar cane.
| Planted Areas | Paddy Area* | Rubber | Oil Palm | Sugar Cane** |
|---|---|---|---|---|
| Hectares | ||||
| Perlis | 26,088 | 373 | 35 | 8,553 |
| Kedah | 106,632 | 13,567 | 72,321 | 11,324 |
| Pulau Pinang | 12,643 | - | 13,868 | - |
| Perak | 22,235 | 5,038 | 302,938 | - |
| NCER | 167,598 | 18,978 | 398,162 | 19,877 |
Source: State / District Data Bank, Department of Statistics, 2005
Paddy Production Survey Report, Malaysia (Main Season 2004 / 2005), Department of Agriculture, 2006 (p.15)
*Planted paddy area for main season, 2004/2005
**State Structure Plans of Perlis, Kedah, Pulau Pinang and Perak
The relatively low income of farmers stems from low yield, which in turn is caused by several structural factors. One of the key objectives of the NCER initiative is to address these factors, thereby growing farmers’ incomes and the size of the agricultural sector.
It is envisioned that the NCER will become a modern food zone for Malaysia, beginning with innovation from leading scientists which are then adopted and commercialised by industry at international standards and marketed in domestic as well as foreign markets.
The transformation from existing practices to “new agriculture” will be a key factor in addressing low yields and improving productivity of land, thereby growing the agricultural sector’s economic contribution, improving rural incomes and helping to reduce Malaysia’s food deficit, which reached RM7.4 billion in 20053.
The Northern Corridor has several existing advantages that can be capitalised on to accelerate agricultural growth and transform the Region into a modern food zone for Malaysia:
Significant land allocated and used for agricultural activities
Around 40% of the land in the Northern Corridor (932,581 hectares) is classified for agricultural use, out of which 595,615 hectares are utilised for the cultivation of paddy, sugar cane, oil palm and rubber. Of this, 167,598 hectares4 are planted with paddy, accounting for 64% of the total paddy cultivation areas in Peninsular Malaysia.
From the 932,581 hectares of land classified for agricultural use, there is potential to utilise more than 100,000 hectares of land that is currently idle.
Certain parts of the North also have climate advantages e.g. Perlis, which has a distinct dry and wet season, suitable for the cultivation of fruits such as mangoes and as a testing site for the robustness of seeds.
Land use in NCER and distribution of agricultural land in NCER states.
Availability of farming communities
With the exception of Pulau Pinang, around 20% of the population in the states of the Northern Corridor are already employed in the agricultural sector in areas such as paddy, fruits and vegetable farming. This significant participation in agriculture indicates that the existing population has familiarity and knowledge of farming practices, which can be further enhanced by the programmes to be introduced in the NCER socioeconomic Blueprint.
Availability of institutional support for paddy cultivation activities
Currently, several institutions in the NCER are assisting paddy farmers by providing a better variety of paddy seeds and increasing productivity through the management of paddy fields. Muda Agricultural Development Authority (MADA) and Integrated Agricultural Development Project (IADP) own three granary areas in the NCER that constitute 76% (127,737 hectares) of the total NCER paddy cultivation areas:
- MADA in Kedah: Manages the irrigation system to MADA granary areas and provides subsidies as part of the “Projek 10 Tan” programme to increase paddy yield.
- IADP Pulau Pinang and Kerian: Improves paddy farming infrastructure such as irrigation systems and provides consulting services to enhance farming skills and fertiliser subsidies to farmers.
The availability of institutions on the ground provides a ready mechanism to channel improvement programmes that will be introduced as part of the Blueprint.
- UNDP Report 2004. Percentage for Perak is based on total for the entire state
- Source: National Physical Plan, 2005 p. 4-9
- Source: Ninth Malaysia Plan and Agriculture Statistics Handbook 2006
- Source: Paddy Production Survey Report Malaysia (Main Season 2004/2005), Department of Agriculture