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Profitability and Competitiveness of Rice Farming in Malaysia: A Policy Analysis Matrix

Author

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  • Fazleen Abdul Fatah

    (Universiti Teknologi MARA, Malaysia Georg-August University of Goettingen, Germany)

  • Stephan Von Cramon-Taubadel

    (Georg-August-University of Goettingen, Germany)

Abstract

In recent years, the Malaysian rice sector has experienced structural changes to improve its competitiveness within a dynamic environment that is influenced by political, technical, economic, and international trade challenges. Using a policy analysis matrix and a rich dataset on rice producing households in four of Malaysia’s granary areas, the competitiveness of rice production in Malaysia is analyzed. The empirical results show that rice production is competitive in three of the four granary areas, the exception being Ketara granary area. To fully understand the importance of the competitive farms, they must be identified and studied by further research using disaggregated data. The finding suggests that government policy should focus on encouraging structural changes capable of enabling the local farms to grow enough to earn sufficient income, generate social profits, and thus improve the sector's competitiveness.

Suggested Citation

  • Fazleen Abdul Fatah & Stephan Von Cramon-Taubadel, 2017. "Profitability and Competitiveness of Rice Farming in Malaysia: A Policy Analysis Matrix," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 14(2), pages 32-47, December.
    • Handle: RePEc:sag:seajad:v:14:y:2017:i:2:p:32-47
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    Cited by:

    1. Sudawan Somjai & Thitinan Chankoson & Kittisak Jermsittiparsert, 2020. "An economic analysis of agricultural production function on the paddy fields of Thailand," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 2012-2025, March.

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