Thursday 28 Mar 2024
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KUALA LUMPUR (April 23): With the Covid-19 pandemic raging unabated, food security will become an even a bigger concern in time, says the Malaysian Institute of Economic Research (MIER).

“The country will need to have a clear strategy in terms of food security, even looking at the current pandemic and the risk of the long battle with it until a vaccine is available,” said MIER Health Financing Group member Kahlil Anwar.

“Food security will also need to see preparedness for any other crisis that may come our way,” he added in a virtual press conference today.

Kahlil said planning for food security is absolutely critical as in times of crisis, each country needs to protect its own citizens.

“Our national security policy details food security as a key issue addressed by our nation. In the current [situation], we can see countries protecting their own food sovereignty,” he said.

MIER deputy director Professor Jamal Othman, meanwhile, stressed the need for strengthening the roles of the country’s agriculture sector, particularly in food security and sovereignty.

“Our import bill for grains, processed food, dairy products and seeds is on the rise. It now accounts for 9% of Malaysia’s total imports,’ he said.

Furthermore, he said the country’s traditional commodity-based agriculture must adjust to give more space for food crops, livestock and aquaculture.

“The more we produce our own food, the more resilient we become. Agriculture should be seen from a system's approach where it encompasses agriculture input supplies, farming, financial and insurance support, transportation, processing and storage, and includes IT (information technology) services as one large sector with interrelated activities, including rural vitality and ecosystem services,” he said.

“If seen this way, [then] the true contribution of agriculture to our economy can be seen more clearly,” Jamal added.

Commenting on the 0.2% contraction in Malaysia's Consumer Price Index for March, Jamal said: “The expected price decline in our economy is primarily due to a fall[back] in our supply schedules, while aggregate demand may not rise strongly enough due to the MCO (movement control order) as well as plummeting consumer income.”

He said once the MCO is lifted, prices will return to their normal levels.

On the risk of stagflation, Jamal said one aim of the government’s Prihatin economic stimulus is to avoid the likelihood of stagflation.

“This is done by helping businesses, particularly SMEs (small and medium enterprises), so that aggregate supply schedules will not fall and at the same time the employment rate will rise.

“The stimulus helps both consumption and production. A strong consumption growth induces production and aggregate supply which help regulate prices,” Jamal said.

Altogether, Malaysia has rolled out RM280 billion worth of economic stimulus packages to help cushion the impact of Covid-19. Former prime minister Tun Dr Mahathir Mohamad first announced a RM20 billion economic stimulus package in February, followed by a whopping RM250 billion stimulus package unveiled by current Prime Minister Tan Sri Muhyiddin Yassin. More recently, Muhyiddin announced a further RM10 billion package catered to support struggling SMEs.

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