KUALA LUMPUR: The use of digital agriculture technologies (DAT) in Malaysia's farming sector can improve farmers' profitability and competitiveness in global markets.
According to the World Bank, it also helps strengthen domestic food security, while promoting environmental sustainability and climate resilience.
"The digitalisation of agriculture presents Malaysia with a valuable opportunity to enhance its agricultural contribution to gross domestic product (GDP) by improving labour productivity, driving wage growth, and increasing output."Furthermore, it strengthens the sector's competitiveness by boosting efficiency, cutting costs, elevating product quality, and opening access to global markets," its October 2024 Malaysia Economic Monitor report said.
The World Bank said the adoption of digital tools like precision farming, e-commerce platforms, traceability systems, and blockchain for supply chain transparency can help Malaysia meet international market requirements.
"Technologies such as precision farming, the internet of things (IoT), and artificial intelligence (AI) help optimise resource use, streamline operations, and reduce waste."
"With AI-driven insights, farmers can make predictive decisions to improve yields and lower costs."
"Besides enhancing productivity, these innovations will also contribute to higher wages and economic growth by transforming traditional farming into a more efficient and profitable sector," it added.
The report said digital technologies enhance access to reliable weather forecasts, enabling better decision-making in agriculture as climate change increases weather related risks.
"These decisions can range from short term actions, like determining the best planting times, to long-term investments in infrastructure."
"Improved weather data can also support the development of better agricultural insurance products, such as index based insurance that compensates farmers during extreme weather events," it added.
World Bank country director for Philippines, Malaysia and Brunei Zafer Mustafaoglu said digitalisation has become part of life in many sectors of the economy.
"It is becoming more and more integrated into the agriculture sector. One aspect of it is the digital idea to be able to reach a digital platform to services, finance and markets."
"The other aspect of it is integration of digital technologies into the production structure, meaning for example precision agriculture or other types of technologies into the production."
"The third aspect is also the seed technologies in terms of using digital technologies to improve seeds and utilise them," Zafer told reporters after World Bank's 30th Malaysia Economic Monitor Public Launch today.
He also mentioned that digital technology is increasingly being utilised to manage the entire agricultural process, from the initial stages to marketing.
"Overall, digital technology certainly will improve efficiency, will improve productivity and then the overall production," he adds.
Zafer said the World Bank is working with the Economy Ministry in helping Malaysia to adapt to DAT.
"We have prepared a report on integration, adoption of digital technologies into agriculture. We have just finalised, today's event presents a section of it."
"Certainly we expect to continue working on this and discussing the next steps," he adds.