MALAYSIAN ECONOMICS (ECO261)

REPORT GROUP ASSIGNMENT

(THE IMPORTANCE OF FOOD SECURITY IN MALAYSIA)

PREPARED BY :

NAME OF GROUP MEMBERS MATRIC NUMBER GROUP

1. HAFIZAH BINTI SUBRAY 2020170861 DBS5A

2.NUR AZIERA BINTI SUHAIMI 2020344389 DBS5A

3.NURUL AZLIN BINTI AZMAN 2020189497 DBS5A

5.KHAIRUNNISA IZZATI BINTI MOHD TALHA 2020746705 DBS5A

4.NUR ANIS SYUHADAH BINTI MOHD YUSOP 2020502385 DBS5A

PREPARED FOR : MADAM YOHANA ABDUL HAMID

SUBMITTED DATE : 29 JUNE 2022

 TABLE OF CONTENT

NO TOPICS PAGE

1. INTRODUCTION 3-4

2. CONTENT 1

1.1 REASONS WHY FOOD SECURITY IS VITAL IN

MALAYSIA
5-6

1.2 THE ADVERSE IMPACTS OF FOOD INSECURITY IN

MALAYSIA

3. CONTENT 2

2.1 MEASURES UNDERTAKEN BY THE MALAYSIAN

GOVERNMENT TO SOLVE THE PROBLEMS OF FOOD
7-9
INSECURITY IN MALAYSIA

2.2 METHODS ADOPTED TO BOOST THE ECONOMIC

PERFORMANCE OF RUBBER PLANTATION

4. CONCLUSION AND RECOMMENDATION 9

5. REFERENCES 10 - 11

6. APPENDINCES 12

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 INTRODUCTION

Rubber is a solid, elastic substance derived from the latex of many tropical plants.
The rubber plant "Hevea brasiliensis" is, nevertheless, the most economically grown. Rubber
is used for a variety of things, from erasers to tyres, tubes, and industrial equipment. Rubber
trees may reach a height of 30 meters and begin producing latex at the age of 6 to 7. After
Thailand and Indonesia, India is the world's third largest producer of rubber. Kerala is India's
largest rubber-producing state. Sir Henry Wickham gathered and delivered 70,000 seeds
from the wild rubber tree from Brazil in 1876 at the request of the India Office. These were
hurried to London's Kew Gardens, where they were planted in specially constructed
hothouses. The few survivors were sent to Ceylon in 1877, and eventually to Malaysia and
other Southeast Asian nations. In Malaysia, the rubber tree grew swiftly, and enormous
sections of rainforest were cleared and replaced with rubber trees.

Malaysia was the first country to cultivate rubber. Malaysia produces around 46% of
the world's rubber. In Malaysia, rubber production began in 1877. Rubber was grown on
2500 hectares throughout Asia at the end of the eighteenth century. Shortly after, Henry Ford
began producing his famed automobile, and demand for rubber which is used to create tyres
skyrocketed. Because the trees in the South American rainforest could not possible produce
enough rubber, the new Malaysian plantations discovered that the world needed all of the
rubber they could produce then more. By 1910, 12 million hectares of rubber had been
planted, and Asia, particularly Malaysia, had become the primary suppliers of rubber.
Malaysia produces the most natural rubber in the world. The seedlings were first brought in
from the Amazon basin and planted on an experimental basis here. After the rubber
seedlings were successfully planted, attempts were made to commercialize the product. The
cash for clearing the forest and growing rubber trees was given by the British, who colonized
the region and introduced the rubber tree.

From RM 15.5 billion in 2003 to RM 33.7 billion in 2013, the Malaysian rubber sector
has dramatically boosted its contribution to export revenues during the past ten years. With
an output of 0.67 million tons in 2014, Malaysia rose to the fifth-largest producer of natural
rubber in the world. The Malaysian rubber industry manufactures a diverse range of natural
rubber and rubber wood goods. Malaysia continues to dominate the globe in natural rubber
medical gloves, catheters, and latex thread production and export.

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 The hevea tree produces natural rubber, which is a sustainable raw resource.
Malleability, elasticity, waterproofing, mechanical and thermal resistance, electrical
insulation, and grip on all sorts of surfaces are only a few of its distinctive properties. Rubber
is elastic, flexible, airtight, waterproof, durable, and insulating, to name a few of its
characteristics. Thousands of goods take use of these beneficial characteristics. Some will
be recognizable to you, while others will be unfamiliar because many rubber goods function
behind the scenes. Natural rubber production in Malaysia ranges from 1 to 5 million tons per
year. A large portion of it is sent to Singapore or Penang, from whence it is exported
worldwide. The chief rubber-importing countries first is Singapore to re-export. Second is
Russia and European countries. The third is the U.S.A. Last but not least, Japan and India.

A rubber plantation's work is done in a very systematic manner. Every tree in a

rubber estate is properly looked after. This is done in an intriguing manner. Buds from
chosen high-yielding trees are grafted on to seedlings when they are approximately 5 or 6
cm in diameter. This is done to pass on the "mother- tree's" high-yielding quality. After that,
the graft is tied and left for a few weeks. The grafted buds grow after a few weeks. The old
tree is then chopped down right above the union point. After that, the grafted seedlings are
planted in a row 5 or 6 meters apart. Crop coverings (leguminous creepers, etc.) are placed
in between the seedling trees to maintain the soil and its fertility. Planters take all necessary
precautions against pests and illnesses throughout the growing phase. Manure and fertilizer
are applied on a regular basis.

Because of the suitable temperature and soil, rubber may be grown everywhere in
Malaysia; nevertheless, the majority of rubber plantations are centered in Malaysia's western
coastal plains. Plantations in the coastal zone benefit from the proximity of a port for export.
However, particularly low places are avoided in order to minimize water stagnation. The
state of Jahore in southern Malaysia produces the most. Rubber farming covers over 4-2
million acres, or roughly 65 percent of the country's total cultivated land. Peninsular
Malaysia, which includes 12 of Malaysia's 14 states, is one of the world's most significant
rubber-growing regions. Rubber is also farmed in the Malaysian states of Sabah (previously
North Borneo) and Sarawak (known as East Malaysia). Malaysia is responsible for over 20%
of the world's natural rubber production. Over half of Malaysia's rubber originates from
thousands of privately held pieces of land known as small holdings, which are typically 2
hectares in size. The rest is cultivated on large estates that span thousands of hectares and
are owned by numerous firms. Malaysia has 1.7 million hectares of rubber land.

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 CONTENT 1

1.1 REASONS WHY FOOD SECURITY IS VITAL IN MALAYSIA

The reason why food security is vital in Malaysia is because everyone requires food,
therefore that is the easy reason. However, the difficulty of providing enough food for a
country's population as well as the entire world's population demonstrates why food security
is such a top concern for all nations, developed or growing. Subsequently, food is important
to humans. Malaysia has ratified the Universal Declaration of Human Rights of the United
Nations. According to Article 25, "everyone has the right to a standard of living sufficient for
his or her own health and the welfare of his or her family, including food, clothing, housing,
and medical treatment... " The actions of international organisations like the World Trade
Organization that violate these and other human rights worry human rights leaders all across
the world.

Meanwhile, a community's economy is based on its food supply.The fundamental

component of a community's self-reliance is food. It promotes culture, creates jobs, fosters
community, and promotes public health. Agriculture and food continue to exist even when
other businesses falter because of their fundamental nature. There are numerous vocations
in processing, distribution, and sales that are relevant to farmers as well as cooking. Next,
The basis of health is good food. Health and nutrition are related. Healthy eating habits and
lifestyles can have a considerable impact on the leading causes of death and disability in our
society (heart disease, diabetes, and cancer).

Furthermore, Our food system is overdependent on suppliers in other countries. The

majority of us rely on a system where fresh food is rarely kept locally for longer than 3 to 4
days and must travel hundreds or even thousands of miles. Economies of scale, which do
not take into account the costs to the environment or the loss of product freshness, are what
drive excessive transportation (such as milk being trucked out of the province for processing
and back in again for sale). This method is poor risk management and susceptible to
disruptions of many different kinds.

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 Lastly, What we consume shouldn't harm those who made it.The current trend in the
global food system is to raise monoculture crops on a huge scale for export to far-off
markets, which promotes free trade. All nations eventually resort to doing this at the expense
of their farmers, workers, families, communities, the land, and the water.

1.2 THE ADVERSE IMPACTS OF FOOD INSECURITY IN MALAYSIA

Food insecurity has a negative impact on population health, owing to poor dietary
intakes and low dietary diversification patterns among food-insecure people. High fat
consumption, higher consumption of sugar-sweetened beverages, red/processed meat,
nuts, seeds, and legumes, but lower consumption of vegetables, sweet and bakery desserts,
and lower intakes of macro- and micronutrients were all examples of harmful behaviours.

Food insecurity has been shown to have negative effects on children's nutritional
status and health.Children aged 3 to 8 years old in food-insecure households have been
found to have significantly worse physical function, as well as children aged 12 to 17 years
old. Even with minor household food insecurity, these effects are present in children during
early infancy and until middle life.The impacts on children in food-insecure households can
be devastating, including quality of food, quantity of food, psychological aspects, and social
aspects.

Furthermore ,it can lead to increases in food prices.Food insecurity occurs when
there is a scarcity of food, making the food that is available more expensive to purchase.
This indicates that prices will rise, and related things will become more expensive as a
result. As a result, people's access to food, care, nutrition, and healthcare may be restricted,
putting the country in jeopardy.

Lastly, in a situation when food was scarce, students tended to skip meals or buy
unhealthy food.These habits appeared to be having negative health consequences that were
affecting their regular routines. Students who were food insecure felt less energised in their
regular activities, including studying. Students who were food insecure were also shown to
pay less attention in class.

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 CONTENT 2

2.1 MEASURES UNDERTAKEN BY THE MALAYSIAN GOVERNMENT TO SOLVE

THE PROBLEMS OF FOOD INSECURITY IN MALAYSIA

To address food security challenges, the Malaysian government has implemented a

number of policies and initiatives as strategic plans. The policies have shifted from focusing
on expanding food production to raising people's buying power.The Malaysian government
has launched a number of programmes and policies as part of strategic plans to solve the
problems with food security. The policies are now more concerned with raising the
purchasing power of the populace rather than growing food production. In order to enhance
food production, Malaysia will also diversify its policies by modifying the agrofood industry.
Malaysia will also continue to import food on a net basis in order to increase food security in
the future.

There are several measures proposed by the Malaysian government to solve the
problem of rubber plantations in Malaysia. Firstly, the Government intends to use inoculation
methods on rubber trees.To enable rubber tapping to continue even during the rainy season,
the government plans to utilise the inoculation or injection method on rubber tree trunks.

Secondly, the government also has plans to create cooperatives around rubber
plantations.In order to maximise rubber output, cooperatives are being established in the
rubber sector. These cooperatives will operate to manage dormant or inconsistent rubber
estates. The cooperative's presence is beneficial because it enables the cooperative to look
into the region, locate rubber plantations, and communicate with proprietors about managing
these abandoned fields.

Thirdly, proactive measures to control diseases attacking rubber trees and to stop the
pestalotiopsis disease from spreading among rubber plants. The Malaysian Rubber Board
(MRB) spearheaded the campaign to prevent the severe leaf decay disease from attacking
additional rubber trees during the wrong season. If this is not taken as a step to solve the
problem of rubber cultivation it will result in brown spots on the leaves and result in reduced
latex production.

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 Last but not least, the government has given the Rubber Industry Smallholders
Development Authority (RISDA) RM508 million to enable more than 300,000 active
smallholders countrywide to enhance their income with the allocation provided by the
government, plantation traders or rubber industry can further expand their business and to
export out of the country rubber rubber that has been tapped to be used as raw material to
countries that want and can improve the Malaysian economic.

2.2 METHODS ADOPTED TO BOOST THE ECONOMIC PERFORMANCE OF

RUBBER PLANTATION

The best way to improve the economic performance of natural rubber is to plant
rubber trees on low-quality and degraded soils instead of opening up high-quality natural
forests to plant them. Rubber trees need a hot, humid climate, and more than 90 percent of
the world's supply of natural rubber comes from the mainland of Southeast Asia. But there is
a lot more rubber on the market than is needed right now, which is good for buyers like tire
companies that want to make less of an impact on the environment.

Under the International Tripartite Rubber Council (ITRC), the government is working
with Thailand and Indonesia, the two largest rubber producing countries in the world, in
stabilising rubber prices and increasing the value of the commodity. The government wants
to increase domestic rubber consumption to increase rubber prices in the medium and long
term. One way to do this is to use rubber to build roads and make new value -added rubber
products, such as rubber gloves. Also new is the idea of ​a “Rubber Community Farm,” where
it increases the supply of raw materials and gives more money to small farmers through
cash crops and livestock. The government also wants to build the Eastern Region Latex
Corridor so that it can procure local latex products to help the latex rubber manufacturing
industry grow. This will help rubber entrepreneurs make more money and increase the
country's natural rubber consumption by making the tire industry in Malaysia stronger.

Based on what experts in the rubber industry had to say, it was found that advances
in technology are the most important factor in the growth and development of the Malaysian
rubber industry. With this level of technological progress, Malaysia will not only be able to
meet its goal of total rubber consumption, but it will also be able to carry out plans to

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diversify the rubber products manufacturing industry. Research and development (R&D)
activities can definitely speed up technological progress and can be used to their fullest in
this industry both upstream and downstream. In order to reach this high level of technology,
the government must encourage agencies like the Malaysian Rubber Board, FELDA,
FELCRA, LIGS, and the Department of Agriculture to do more research and development
(R&D).

CONCLUSION AND RECOMMENDATION

In conclusion, food security is not a simple matter that can be addressed by

increasing food supply and reducing the price of food,so that people can access and afford
to buy food.Its fundamental purpose is to increase the purchasing power of the people and
help reduce poverty.Malaysia must be brave to face the current and future challenging
times,especially when the demand for food is increasing,while the domestic production is
increasing at a growth rate lower than the demand.The agriculture sector is determined by
good strategic plans and good government policies.

Malaysia needs to place more emphasis on 'self-production and strategic food' to

address food security issues. Food security is the responsibility of everyone whether home
organisation, farmer, private or government.Considering the enormous implications of food
insecurity towards health, the finding of this study warrants the need for continuous research
to explore and understand the situation in Malaysia. At the same time, immediate action or
programs needed to reduce the prevalence of food insecurity before it worsens due to the
increasing cost of living and global economic instability.Compared to the industrial sector,
agriculture is exposed to many more unpredictable risks and uncertainties. Thus market risk
management should be developed, such as price monitoring and forecasting, to reduce the
risk in food production. Emergency-preparedness planning through effective early warning
and other information systems as well as introducing measures to prevent natural disasters,
such as irrigation schemes and flood control schemes should also be established.

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 REFERENCES

Conserve Energy Future. “Causes, Effects and Solutions to Food Insecurity (Lack of Access
to Food).” Conserve Energy Future, 19 July 2020,
www.conserve-energy-future.com/causes-effects-solutions-food-insecurity.php.

Hadley, Craig, and Deborah L. Crooks. “Coping and the Biosocial Consequences of Food
Insecurity in the 21st Century.”
American Journal of Physical Anthropology, vol. 149, no. S55, 2012, pp. 72–94,
10.1002/ajpa.22161.

INDUSTRI GETAH MALAYSIA 2021.

www.dosm.gov.my/v1/uploads/files/6_Newsletter/Newsletter%202022/DOSM_BPPA
S_1_2022_Series%2029_compressed.pdf.

Prosiding, and Vii. “Membina Senario Masa Hadapan Industri Getah Malaysia: Road Map
Dan Pemacu Utama Industri.” JILID, vol. 1, 2012, pp. 27–43,
www.ukm.my/fep/perkem/pdf/perkemVII/PKEM2012_1A4.pdf.

“Rubber Plantation Information Guide | Agri Farming.” Www.agrifarming.in, 10 June 2015,

www.agrifarming.in/rubber-plantation#:~:text=about%20Rubber%20Plantation.-.

Samkri. “Icse Resource Provider: Rubber Cultivation in Malaysia.” Icse Resource Provider, 9
Feb. 2011,
icsehelp-resources.blogspot.com/2011/02/rubber-cultivation-in-malaysia.html#:~:text
=Malaysia%20is%20the%20leading%20producer.

AHMAD, AMREE. “Langkah Proaktif Kawal Penyakit Serang Pokok Getah.” Utusan
Digital, 19 Jan. 2021,
www.utusan.com.my/nasional/2021/01/langkah-proaktif-kawal-penyakit-serang-poko
k-getah/. Accessed 28 June 2022.

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BERNAMA. “RISDA Peruntuk RM508 Juta Tahun Ini Bantu Pekebun Kecil.”
Astroawani.com, 2022,
www.astroawani.com/berita-malaysia/risda-peruntuk-rm508-juta-tahun-ini-bantu-pek
ebun-kecil-362399.

Bernama. “40% Ladang Getah Di Malaysia Tidak Konsisten Keluarkan Getah, Kata
Zuraida.” MalaysiaNow, 14 Mar. 2022,
www.malaysianow.com/berita/2022/03/14/40-ladang-getah-di-malaysia-tidak-konsist
en-keluarkan-getah-kata-zuraida/.

“Govt Plans to Use Inoculation Method on Rubber Trees — Zuraida.” Www.thesundaily.my,

www.thesundaily.my/local/govt-plans-to-use-inoculation-method-on-rubber-trees-zur
aida-DC8602522.

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APPENDICES

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