THE agri commodity sector has contributed RM61.3 billion to the country’s GDP for the first nine months of this year, Deputy Prime Minister Fadillah Yusof said today.

Fadillah, whose portfolio is plantations and commodities, said the sector also recorded a total export value of RM161 billion and provided job opportunities for almost 1 million Malaysians.

The deputy prime minister said he would hold a meeting with industry players next week to look at the entire supply chain.

On the challenges faced by the sector, he said dependence on foreign labour, in which if there is a worker shortage, will also affect revenue and exports.

“We will consult with the ministries involved to come up with a strategy that takes into account our production, the export market, and downstream products,” he said in Putrajaya today.

Fadillah said the government was aware that continued dependence on foreign labour could affect the plantation sector, especially the palm oil industry, in the long run, adding that as of October 30 this year, almost 151,000 foreign workers were reported to be employed in the plantation sector.

As such, he said short-term and long-term courses to increase awareness and skills in the use of machinery should be intensified to improve productivity and reduce dependence on foreign labour.

Fadillah also said that mastering technologies based on the Industrial Revolution 4.0 (4IR) will also ensure younger people involved in the plantation and commodity industries have the necessary skills to keep up with current technological developments.

“The use of technology can also produce smart smallholder farmers who are able to adopt modern farming methods and innovate, apart from increasing the competitiveness of Bumiputera entrepreneurs in downstream industries,” he said.

Fadillah said the Technical Education and Vocational Training (TVET) ecosystem also needs to be strengthened through collaboration with stakeholders to enable the development of competitive national agricultural commodities in line with the growing gig economy.

“A strong TVET ecosystem in the plantation and commodity sectors will enable the country to address persistent problems such as dependence on foreign labour. The initiative can lead to a flexible labour market and further contribute to improving the living standards of the people,” he said. – Bernama, December 15, 2022.