KUALA LUMPUR: Specialty rice in East Malaysia should be characterised and recognised at the state and federal levels, according to Khazanah Research Institute (KRI).
In its report, titled “Paddy and Rice Industry of Sabah and Sarawak: Status And Potential”, KRI said that the specialty rice market has a huge potential to grow further and may also potentially improve the rice self-sufficiency level (SSL) in East Malaysia and reduce reliance on imports, through an increase in production and expansion beyond subsistence farming for the rural communities.
During a virtual presentation today, KRI Research associate Nik Syafiah Anis Nik Sharifulden said an increase in the export of specialty rice might also reduce the issue of trade bias and food trade deficit that the region is currently facing.
“Ramping up specialty rice’s production will allow for more of the products to be exported to Peninsular Malaysia and the neighbouring countries, allowing trade balance, reducing the trade deficit, as well as increasing the income of the local communities,” she said.
Nik Syafiah Anis said the market expansion of specialty rice could potentially be a source of poverty alleviation, especially among rural communities, and this is because the excess rice cultivated can be sold at a premium price, thereby giving the rural communities extra income.
According to the report, Sabah and Sarawak have considerably high import values of rice at RM370 million and RM270 million, respectively, in 2020, as well as other food products such as meat and dairy, indicating high import dependency towards major food items.
“Generally, as food imports are significantly higher than food exports, both Sabah and Sarawak have been experiencing a high food trade deficit of RM4.7 billion and RM3.7 billion, respectively, since 2013.
“It is worth noting that trade in East Malaysia suffers from trade bias as most shipping companies prefer Port Klang over the ports in East Malaysia, partly contributed by the lack of backhaul cargo as most containers coming from East Malaysia to Peninsular Malaysia are returned empty.
“This causes shipping companies to double their goods charges to cover the freight rate, making the trade to East Malaysia less favourable,” said Nik Syafiah Anis. -Bernama
