Malaysia has allocated MYR 2.62 billion (USD 582 million) under Budget 2026 to reinforce food security through record support for paddy farmers, covering subsidies for inputs, seeds, fertiliser, and production. Prime Minister Anwar Ibrahim said the government remains committed to securing food supply chains and raising farmers’ incomes through targeted modernisation, including major irrigation works in Kedah and Perlis and the upcoming MYR 1.28 billion (USD 284 million) Jeniang Water Transfer Project. Additional funds will rehabilitate problematic paddy fields, enhance irrigation, and supply soil and foliar treatments to boost yields.
To lift productivity, the government has increased ploughing and pesticide incentives and introduced a new harvesting incentive to offset diesel costs, with farmers expected to receive around MYR 4,300 (USD 955) per hectare per season. Agricultural collaboration is expanding nationwide, supported by over 360 projects since 2024 across crops, livestock, aquaculture, and automation. In 2026, MYR 300 million (USD 67 million) will be channelled to expand cultivation in Sabah and Sarawak, complemented by MYR 1.1 billion (USD 244 million) in Agrobank financing and MYR 20 million (USD 4.4 million) in grants under the Agropreneur NextGen programme.
Support for coastal and rural communities remains strong, with MYR 160 million (USD 36 million) allocated for fishermen’s living allowances, fuel subsidies maintained at MYR 1.65 per litre (USD 0.37), and funding provided to upgrade boats and replace unsustainable gear. Fruit growers will receive MYR 55 million (USD 12 million) through infrastructure and crop incentives. Together with extended tax exemptions for companies investing in new or expanded food production, these measures highlight Malaysia’s long-term strategy to enhance domestic output and strengthen national food resilience.
(Sources: The Malaysian Reserve; New Straits Times)
