KUALA LUMPUR: The Agriculture and Food Security Ministry's (KPKM) decision to merge seven enforcement agencies will both provide clarity and save costs for players, benefitting the agriculture sector.
Economist Dr Geoffrey Williams said the merger will streamline regulations, reducing redundancy, contradictions, and replication.
He added that this clarity will help agro-industry players understand the regulatory landscape better and save costs through a centralised administrative system.
"By reducing management costs, resources can be redirected towards improving the number of monitoring and enforcement officers, ultimately enhancing overall service quality.
"Furthermore, I believe that the merger will enable the adoption of new systems, regulations, and technologies across all agencies, improving service delivery, quality, and speed," Williams told Business Times.
While the merger promises significant benefits, Williams cautioned that there are challenges that must be addressed.
He said that merging the existing laws and regulations will be complex, and there may be resistance from those directly affected by the organisational shifts.
"Securing stakeholder buy-in will also be crucial to ensure the reforms are implemented effectively and efficiently," he said.
Universiti Kuala Lumpur Business School economic analyst associate professor Aimi Zulhazmi Abdul Rashid said it is good that the ministry is taking proactive action to restructure government agencies that influence the industry.
He said that many of these agencies were created to serve specific purposes in the past but may no longer be relevant today.
Therefore, he said the ministry needs to step in with political strength to improve the agencies' deliverables, boost farmers' output, and increase their income.
"Another specific challenge is eliminating the middlemen and cartels in the industry's supply chain, which control massive components, including seeds, fertilisers, equipment, machinery, logistics, transportation, and commodity prices."
"A strong political will must be accompanied by honest and professional management to capitalise on this fruitful industry, which has historically underperformed," he added.
Meanwhile, Nusantara Academy of Strategic Research senior fellow Professor Dr Azmi Hassan believes that the steps taken by the ministry align with efforts to enhance border security, as all borders are now managed by a single agency or head to streamline security measures.
"That's likely why the minister mentioned that most of the streamlining or mergers involve enforcement agencies. "While this may not have a direct benefit for our food industry, it will directly benefit the people," he said.
Azmi also believes that the minister is attempting to tackle similar issues to ensure that subsidised foods, especially rice, which has been particularly scarce are managed effectively.
"I think addressing these leakages and smuggling activities will directly benefit the people by ensuring their access to essential foods, particularly rice, sugar, and sometimes cooking oil.
"In this way, it will benefit the public directly and, indirectly, the industry as well," he added.
Yesterday, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu announced that his ministry will merge seven enforcement agencies under its purview to enhance regulation within the agro-food sector.
The agencies involved are the Kawalselia Padi dan Beras (KPB) regulatory body, the Department of Quarantine and Inspection Services Malaysia (Maqis), the Department of Agriculture, the Department of Veterinary Services, the Department of Fisheries, the Federal Agricultural Marketing Authority (Fama) and the Malaysian Fisheries Development Authority (LKIM).
Mohamad Sabu said the reform proposal would be presented to Prime Minister Datuk Seri Anwar Ibrahim in a meeting scheduled for Nov 1.