SMALLHOLDERS in the agricultural sector should merge their holdings to maximise earnings and become profitable, said Prime Minister Dr Mahathir Mohamad.

Urging them to change their ways, he suggested they form cooperatives to achieve this.

“If they continue with small farms, they cannot make profit. But when they work as a cooperative, they can produce a lot of other things,” he said after launching the annual general meeting of the National Association of Smallholders Malaysia in Kuala Lumpur this morning.

Dr Mahathir said if 20 smallholders are to combine their holdings, they can appoint a third party to monitor the business.

He added the plantation can be managed by professionals and estate managers with techniques used at bigger estates.

“The smallholders will still own their land, but the share they receive will be based on their respective plots.

“They can work or just be landlords. But, the benefits of the plantation will be in proportion to the size of their contributions.”

Dr Mahathir added that a few padi farmers have agreed to the proposal and are in the process of making arrangements.

“The Agricultural Ministry will take the lead in this merger programme of small holdings.”

The functions of the cooperatives will also have to be revised, he said.

“As we know, the development of cooperatives in Malaysia is still at a low level than other developed countries.

“The ministries and agencies will have to play a major role in the redefinition of functions, especially cooperatives in the rural areas as a mainstay for smallholders.” – October 17, 2019.