Budget 2023 can tackle the agro-food sector challenges, says Mat Sabu

SHAH ALAM - The Agriculture and Food Security Ministry (MAFS) is confident that the Budget 2023 that was retabled yesterday can tackle the challenges faced by the agro-food sector, including food production, supply, and marketing.

Its minister, Datuk Seri Mohamad Sabu, said his ministry welcomed the Madani Budget retabled by the Prime Minister Datuk Seri Anwar Ibrahim especially in regards to the agriculture sector.

"The revised budget will be able to tackle the agro-food sector's challenges, including food production, supply, and marketing.

"The government has allocated RM5.39 billion to MAFS this year, which is a 12.06 per cent increase compared to RM4.81 billion in 2022.

"The increase proves that the government is concerned about making the agro-food sector a sustainable, resilient, and high-tech sector," he said in a statement today.

In line with the food security agenda, subsidies and incentives for padi and rice industry amounting to RM1.6 billion had been allocated with additional RM228 million cash contributed to rice farmers.

"Thirty per cent share of the net profit of rice imports will be given to rice farmers by Padiberas Nasional Berhad (Bernas)," he said.

He explained that these initiatives will help increase the income and living standards of rice farmers.

Additionally, Mohamad Sabu said the use of automation and digitisation in the agricultural sector had contributed to the improvement of product quality and workforce productivity.

Therefore, he said the initiatives through Agrofood Financing Fund and Digital AgTech programme has accelerated capital allowance.

Further, 100 per cent income tax exemption on capital expenditure has been emphasised to expand and empower modern technology users, he added.

He added that collaboration by stakeholders was necessary to ensure the agro-food ecosystem's sustainability.

"The food security agenda across ministries and state government as well as government-linked companies (GLCs) as stated in the budget are welcomed.

"Initiatives that are announced are grain and corn planting, the Rahmah sale, the 'Cloud Kitchen' platform, and the community's garden programme to reduce the burden of living costs," he said.

Mohamad Sabu said the government also encouraged large-scale private investment in agriculture to increase food production.

The ministry is committed to implementing the Budget 2023's initiatives efficiently and prudently for the people's well-being, he added.

"I have faith that the initiatives in the Madani Budget will be catalysts for economic growth in line with the objectives and targets under the National Agro-Food Policy 2021–2030 (DAN 2.0)," he said.