In 2011, Malaysia introduced the National Agrofood Policy (NAP) which aims to improve the efficiency of its agrofood industry, particularly in terms of driving productivity and competitiveness across the industry value chain. It is anticipated that the NAP will increase the revenue of farmers as well as entrepreneurs, and allow the agrofood sector to develop into a steady, resilient, competitive and sustainable industry.
However, there are now new challenges in Malaysia’s agricultural sector, such as decreasing farmland for food production against increasing population and aging smallholder farmers. Malaysia’s Total Factor Productivity Growth in Agriculture, which is the ratio of total agricultural output to total production input, is rather stagnant at around 105 compared with countries such as Thailand, Vietnam and Indonesia that have surpassed the 120-level from 2008 until 2016.
This is why NCIA has now adopted NAEZ as a new development approach to drive Malaysia’s advancement in the agrofood arena and ensure the nation’s food security.
This game changing initiative is crafted with a macro holistic approach which incorporates an end-to-end value chain embedded within the park, that is supported by various facilitation and key enablers such as technology, research and development and commercial (R&D&C), human capital and financing.