KOTA KINABALU: Malaysia must act swiftly to compete for and secure local rice supplies to bridge the 38 per cent rice deficit.
The urgency arises from fierce competition expected from Indonesia, facing a 42 per cent local rice supply shortage, and the Philippines, Southeast Asia's leading rice importer with imports valued at around USD1.3 billion in 2021.
Malaysia's rice self-sufficiency level (SSL) is the lowest in the region, just above 60 per cent and way below the Philippines, Indonesia, Vietnam and Thailand, said the Institute of Strategic Analysis and Policy Research (Insap) chairman Datuk Dr Pamela Yong and senior economic researcher, Mohd Khairul Ramli, in a statement.
"As it stands, our nation can only sustain 67 to 70 per cent of the rice supply for local consumption," said the statement.
The Malaysian rice market faces disruption as the price of imported rice surged by 36 per cent following India's export ban on Sept 1, 2023, aimed at safeguarding domestic food security, the statement said.
This ban, the statement said, has affected nearly 40 per cent of the global rice trade, driving prices up and worsening supply chain disruptions.
To ensure food security and support the agricultural sector, they said the government should ensure that Bernas' profit contribution directly benefits low-income farmers.
The statement said the government assistance for paddy farmers should be strengthened to encourage higher yields and improved quality, while aligning the Malaysian Agricultural Research and Development Institute (Mardi) with these goals.
The 2024 budget's irrigation upgrades in Kedah and Perlis should be complemented by the adoption of agri-tech and modern farming techniques to enhance crop yields and quality, said the statement.
"To address the issue of food safety and security in our nation, it is crucial to strengthen our position in importing rice from other exporting countries like Vietnam, Thailand, and Pakistan, promptly.
"This is because countries like Indonesia and the Philippines are currently seeking alternative sources to meet their rice demands due to the export ban imposed by India.
"At the same time, it is crucial for Malaysia, particularly the Ministry of Agriculture and Food Security, to review and study the efficiency of the current rice import and distribution model," it added.