By Nasuha Badrul Huzaini
SHAH ALAM, Dec 11 — It is high time for both the Federal and state governments to re-look into the sector as the trade deficit in agro-food has been continuously widening since the 1990s.
Bank Islam Berhad chief economist Dr Mohd Afzanizam Abdul Rashid said on a national level, the deficit stands at RM22 billion as of last year and the figure shows that the sector has been neglected to a large degree.
“Therefore both the Federal government and state governments have to adopt a more holistic approach towards all the upstream, midstream and downstream components of the agriculture sector.
“The downstream sector has been mentioned in the 2022 Selangor Budget. Most importantly is how the state government would govern the resources so that the sector can create a desirable impact on the economy.
“The agriculture sector has an elastic demand in terms of prices, therefore I think if the state government can formulate or govern the resources, this sector could be one of the key drivers for Selangor economic growth,” he said during the Table Talk show titled ‘2022 Selangor Budget: On Managing Risk, Building Resilience’ broadcast live on Media Selangor social media platforms last night.
In the state budget tabled on November 26, Menteri Besar Dato’ Seri Amirudin Shari said several new initiatives will be implemented to develop the economy in the Sabak Bernam district in a more holistic and planned manner, including the development of downstream industries.
Afzanizam added that the way to approach the agriculture sector has to be technology-driven and more productive as opposed to what was practised in the past.
“For example, the use of drones technology in areas such as insect pesticide, irrigation and fertilisation would be able to improve the agricultural yields.
“By having more efficiencies, perhaps more income could be generated by the planters. Of course, the technology requires their own know-how, so when there is a specific programme being introduced such as a bachelor degree or short course in the aviation sector, the impact is very wide-ranging.
“In fact, the drone technology and aviation industry can be the key catalyst to create more high-income and high-quality jobs. I think the Selangor government is cognisant of the nature or potential that the agricultural sector has towards the economy,” he said.
The Selangor government had revealed its 2022 budget with allocations up to RM2.343 billion and themed ‘Kita Selangor: Staying Resilient, Uplifting Lives’.
The state budget includes a development project planned for Sabak Bernam that will include a 450-acre seafood and agro-food centre, involving investments of around RM500 million from the government and the private sector.
The state had also planned to develop a chicken processing facility in Sekindi with an allocation of RM15 million; a palm oil factory in Jelutong Jati with an allocation of RM50 million; and a 36-acre logistics and trade centre in Air Manis with an investment value of RM500 million.
