NCER AGRIBIO ECONOMIC ZONE (NAEZ)

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 ecosystem.

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.

KEY CHALLENGES OF MALAYSIA’S AGROFOOD INDUSTRY

Domestic food prices are on the rise, with food constituting a significant portion of household expenditure
Production and agrofood productivity decreased after its peak in 2014/2015
The SSL for majority of the commodities have been on a decreasing trend with the exception of rice
The Agrofood industry continues to rely heavily on imported agricultural inputs
Competition for land for the cultivation of agrofood crops from commodity crops
Mean household income for agriculture industry is increasing at a slower rate than national mean income

 

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.

SPECIAL AGRO ECONOMIC ZONE (SAEZ) HIGH-LEVEL STRATEGIC CONCEPTUAL ECOSYSTEM

Guiding Principles

 

  1. Malaysia Plan
  2. National Agrofood Policy
  3. Hala Tuju Kementerian Pertanian & Industri Asas Tani: Prioriti & Strategi 2019-2020

AGRICULTURE VALUE CHAIN

 

icon

Farm Inputs - Harvesting

Upstream

 

 

icon

Primary Processing

Midstream

 

 

icon

Secondary Processing

Downstream

 

 

icon

Export, Wholesale, Retail

Distribution

 

 

Anchor Company Business

 

 

Satellite Farmers

 

   

 

KEY ENABLERS

icon


R&D

icon


Financing/Funding

icon


Labour & Human Capital

icon


Incentives & Pro-Business Regulations

icon


Logistics & General Infrastructure

FACILITATION

icon

 

Direct Agro-related Government Services, Security and Other Devices

 

icon

 

Academia, Education and Training Institutes

 

icon

 

Trade and Promotion

 

BENCHMARKING

tea plantation in india
01

India

  • Known as Agri Export Zones
  • Governed by the Agricultural and Processed Food Products Export Development Authority (APEDA)
  • Promote value-added exports
tea fields
02

China

  • Technological progress and innovation in agro-tech parks and agricultural demonstration zones reaches roughly 70%
  • Increase of farmers' income - over 30% higher than income in surrounding villages
strawberry garden thailand
03

ASEAN

  • Philippines - Known as Agro-Industrial Economic Zones and governed by Philippines Economic Zones Authority (PEZA)
  • Thailand - The zone policy contradicts other policies, resulting in its limited success
ready to invest

READY TO INVEST?

Explore investment opportunities with us. Get in touch to learn more.

 

Contact Us

unlock the future

unlock the future

Explore what NCER has to offer and be part of the narrative that propels us forward.

 

View Reports