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The Sun
16-05-2025
- Business
- The Sun
Generational gap widening in agriculture sector
PETALING JAYA: Malaysia is grappling with a widening generational gap in its agriculture sector, despite increased government funding and push toward modernisation. According to a Bernama report, Khazanah Research Institute stated that only 15% of the country's agriculture workforce is under the age of 40, while the average age of padi farmers now stands at 60. This figure raises red flags over long-term food security. In a written response to theSun, The Agriculture and Food Security Ministry acknowledged that perceptions of agriculture as 'low-income, labour-intensive and lacking status' continue to deter youth participation. The ministry cited that the combination of financial barriers, land access issues and limited exposure to modern techniques as core challenges. 'Agriculture is frequently associated with traditional, physically demanding labour and low financial returns. 'As a result, many youths consider agriculture unattractive compared to urban-based careers in technology, services or finance, despite the increasing potential of modern agribusiness and agrotechnology,' the ministry said. It stated that even if youths manage to start agricultural businesses, they face difficulties in accessing stable markets, value chains and reliable post-harvest infrastructure, such as cold storage and logistics. 'Without efficient supply chain networks or market linkages, many young agropreneurs struggle to achieve profitability or scale-up. This creates a discouraging cycle of low returns and limited growth prospects,' the ministry said. Despite the challenges, government initiatives, such as the Young Agropreneur Programme, receive moderate participations. Since 2021, 3,242 youths have participated in the programme, receiving a combined of RM67 million in support, including startup grants and access to business advisory services. The average combined monthly revenue among participants stands at RM17.5 million. theSun was able to reach out to two of the programme participants over the last few years. One such voice on the ground is Mohd Hafiz Nordin, 41, who runs an aquaculture business in Bestari Jaya, Selangor, under ARC Berkat Agrofood Sdn Bhd. He has been in the industry for 19 years, long before the programme was formalised. 'I got involved in agropreneurship before the programme was even officially launched,' Hafiz said. Hafiz received RM30,000 in initial support, which he used to expand his tank-based fish farming operations. However, he stressed that money alone is not enough. 'Grants help, but if you give youth money with no structured mentoring, they'll follow theory. When theory fails, so does the business,' he said. A similar sentiment is echoed by Farah Hidayah Chu Ahmad, 39, who received the programme assistance in 2020 for her sambal -based food processing business in Selangor. 'While the RM20,000 grant I received at the time was essential in scaling up my production, attracting youths to my operations has been difficult. 'Raw material costs are high and production margins are tight. 'We can't offer RM3,000 salaries to new workers when the business itself is unpredictable.' In response to the manpower gap, the government has increased its allocation for the programme to RM25 million in 2025, up from RM20 million the year before. The start-up grant, which offers non-repayable in-kind support, was revised to provide up to RM30,000 per participant. A new scale-up initiative was also introduced, providing up to RM50,000 to help existing youth agropreneurs expand their agribusiness ventures.
The Sun
15-05-2025
- Business
- The Sun
Nungsari bullish on Kota Kinabalu International Airport's prospects
KUALA LUMPUR: The push for greater regional economic integration amid shifting global trade dynamics bodes well for the prospects of Kota Kinabalu International Airport (KKIA), thanks to its proximity to key East Asian markets and the broader Asean region. These factors position KKIA in a uniquely strategic position, which calls for a long-term development strategy, said Khazanah Research Institute chairman Dr Nungsari Ahmad Radhi. 'I am bullish about KKIA, and I think there has to be more conversations between the federal and state governments on the long-term development strategy of Kota Kinabalu as a transportation hub,' he said. 'KKIA is two hours closer to major East Asian markets such as the Philippines, Korea, China, and Japan than Kuala Lumpur. It is already growing as a passenger destination but has yet to develop as a cargo destination,' he said in an exclusive interview with Bernama. Nungsari, a former Malaysian Aviation Commission executive chairman, now serves as Malaysia Airports Holdings Bhd's non-independent non-executive chairman. 'There is also the significant infrastructure development under way in Kalimantan, primarily driven by the relocation of Indonesia's capital city to Nusantara in East Kalimantan. Borneo is set to become the centre of gravity in the region and the development of KKIA must be carefully crafted, taking into account its potential growth and existing constraints,' he said. It was reported that the expansion of KKIA is set to begin in the third quarter of this year, following Cabinet approval of the RM442.3 million project in November. The expansion will increase the airport's annual passenger handling capacity from nine million to 12 million passengers a year. The upgrades include an expanded main terminal, a new multi-storey car park, seven additional aircraft parking bays and road improvements around the airport. While Kuching International Airport has similar ambitions, Nungsari acknowledged that it faces greater challenges than KKIA. Nevertheless, he remains confident in both airports' opportunities to strengthen Malaysia's aviation sector, triangulating the two ends of Kalimantan and the peninsula. On the international, front, US-China trade tensions and the many unilateral decisions taken by the US will change global trade in some significant ways. Regardless of the outcome, Asean has to consolidate further to be able to respond to these changes as a single bloc. Key to this economic integration is transportation and logistics within the region, as well as connecting it to the outside world. Furthermore, intra-Asean trade growth depends on greater connectivity within the region. Asean has had various initiatives, namely the Asean Economic Community, Asean FTA, Asean+3, and it is also part of the Regional Comprehensive Economic Partnership encompassing 15 countries in Asean, China, Japan, South Korea, Australia and New Zealand. The potential of these initiatives has mainly remained unfulfilled, and the time is right to make it all happen. Nungsari posited that greater flows of people and goods across the borders within Asean will strengthen Asean as an economic bloc. 'The focus now is so much on border controls instead of promoting greater flows of goods. This division does not promote economic growth and integration. There should be more bilateral initiatives, such as the Johor-Singapore Special Economic Zone, and past initiatives such as the IMT-GT and BIMP-Eaga should be rejuvenated,' he said. Nungsari also said that economic integration is beyond infrastructure, as Asean should move towards becoming a customs union to allow free movement of goods within the region. He said this would allow small and medium enterprises all over the region to leverage a much larger demand side, beyond their national borders. 'It will also make Asean an attractive market in which to invest. A single market of 600 million people, in fact, is not just in potential (but) a significant leverage against the size of China or India,' he said. Responding to a question about the ongoing geopolitical tug-of-war between the US and China, Nungsari opined that Asean and Malaysia should act in their own interests. 'We do whatever benefits us. It does not matter whether it is with the US, China, or anyone. We are and should remain non-discriminatory in that sense. 'That should be our posture. But we are aware of the neighbourhood we live in. We are aware of the tensions that exist. And we are aware that the world is undergoing a transition,' he concluded. – Bernama
New Straits Times
30-04-2025
- Business
- New Straits Times
KRI: Night markets a key driver of Malaysia's economy
KUALA LUMPUR: Night markets have emerged as a key driver of the Malaysian economy, especially during economic downturns, according to a study by Khazanah Research Institute (KRI). In its second discussion paper under the night market project, it said that night markets are found to be an "essential lifeline", particularly in times of crisis. The sector offers employment opportunities to individuals who have been laid off and provides a platform for those seeking to transition into business or self-employment to sustain their livelihoods, said the paper. The discussion paper titled "Why Night Markets Matter?: A Review of Literature" is authored by Nur Sofea Hasmira Azahar and Dr Mohd Amirul Rafiq Abu Rahim. It examines the evolving economic, cultural, and social significance of night markets in Malaysia. "This publication builds upon KRI's earlier work published in January this year on the overall hawking landscape by shifting the focus specifically to night markets as dynamic, multifunctional spaces that blend entrepreneurship, community life, and cultural vibrancy. "While night markets continue to serve as accessible economic platforms for diverse groups, there remains a need for a deeper and more systematic understanding of how they adapt to urbanisation trends, evolving food consumption patterns, rising living standards, and digital transitions," said Nur Sofea. The discussion paper underscored that night markets are deeply embedded in Malaysian society and are seen as an alternative to supermarkets. Night markets have also benefitted many amid the shifts in consumption patterns where more individuals are opting for food away from home. "With a wide variety of stalls offering goods at generally more affordable prices, night markets also help ease financial pressures, particularly in the face of current economic challenges." However, several emerging issues surrounding night markets require deeper examination. KRI said that findings from the literature review revealed that the evolution of night markets is closely tied to urbanisation trends and changing food consumption patterns. There is also limited empirical work that explores how these shifts intersect with licensing frameworks, spatial access, and trader resilience. "Persistent gaps in waste management, food safety compliance, and enforcement by local authorities suggest systemic weaknesses that cannot be resolved through regulation alone. Moreover, rising living standards and evolving consumer expectations around health, convenience, and retail experiences may increasingly challenge the traditional night market model, while the benefits and risks of the food-away-from-home consumption trend remain underexplored. "Although digitalisation is reshaping operations, evidence on its full impact, particularly in promoting inclusive entrepreneurship among women, youth, and B40 groups, remains limited," it added. Through this ongoing work, KRI aims to generate new empirical insights that capture the lived realities of night market traders and consumers across diverse income and demographic groups.
