Securing a Future for Malaysia's Paddy Farming
By Hajar Ariff
May 2025 FEATURE
GLOBAL RICE PRICE surges highlight the fragility in food security, calling for a diversified and adaptive approach for long-term resilience. Malaysia’s reliance on food imports, including roughly 30% of its rice needs from Vietnam and Thailand, underscores this concern. Rice is deeply embedded in Malaysian food culture, and its supply is now facing challenges from urbanisation, climate change and evolving economic priorities. Therefore, should paddy planting remain central to Malaysian nourishment? Or should alternative food security strategies take precedence?
The Enduring Importance of Paddy
Paddy fields in Penang, particularly in areas like Kepala Batas and Balik Pulau, are more than just agricultural land, they are integral to the state’s cultural identity. Local festivals like the Penang International Paddy Festival in Seberang Perai showcase the deep connection between the community and paddy cultivation. Rice, or nasi, is central to Penang’s famous culinary scene, from Nasi Kandar to traditional dishes like Nasi Lemak—it symbolises the island’s rich agricultural heritage. While the Penang today is known for its industrial development, the remaining paddy fields are seen as a vital link to its past.
While Penang excels in yield, evidenced by the state holding the nation’s highest average rice yield per hectare for six consecutive years (2018 to present), the national picture offers a discouraging scenario. As illustrated by the Ministry of Agriculture and Food Security’s data, the self-sufficiency ratio (SSR) for rice has declined from 62.4% in 2019 to 56.2% in 2023 (see Figure 1).
Geopolitically, like the rest of Malaysia, Penang is vulnerable to global market fluctuations. This is exacerbated by the nation’s continued dependence on rice imports, which exposes it to supply chain disruptions. The volatility of the global market, highlighted by the Russia-Ukraine conflict’s impact on supply and demand, underscores the strategic importance of supporting local production, even as diversification is considered.
Challenges Facing Paddy Farming
Malaysian paddy farming is confronted by a myriad of issues endangering its endurance and feasibility, notably in Penang, where city growth and financial progress have altered the farming terrain. Rapid development over the past decades has caused the switch from farmland to housing, business and factory sites, reducing the availability of land for paddy farming. Rice growers have had to tackle specific issues stemming from the region’s quick growth and terrain limits. Still, it’s key to say that rice fields are “First Grade” land (referring to land ownership under a system that predates the National Land Code [Penang and Malacca Titles] Act from 1963, granting landowners the right to use their land for any purpose, subject to zoning and existing land use regulations).
Climate change poses a significant threat to paddy farming—rising temperatures, unpredictable rainfall patterns, and extreme weather events such as floods and droughts can adversely affect rice yields. Referring to Figure 2, the reality that large portions of flood-prone areas—due to rising sea levels—are paddy fields implies a significant reduction in Penang’s self-sufficiency level (SSL) if these events do occur.
Penang’s paddy farming also faces significant water-related vulnerabilities. Primarily reliant on Kedah’s Sungai Muda for domestic, industrial and agricultural irrigation, the state’s dependence on a single water source poses a considerable risk, particularly within creasing demand. During droughts, the government prioritises human consumption, leading to irrigation cuts that severely impact farming operations. This vulnerability is compounded by extreme weather events; for example, a devastating 12-hour storm in November 2017 destroyed nearly 76% of Penang’s paddy fields. Furthermore, recurring droughts have forced the state to halt agricultural irrigation to safeguard household water supplies.
The industry is also grappling with a shortage of labour and an ageing paddy farmer population, as more young people are reluctant to pursue careers in agriculture due to the perception of it being low income and hard labour. Data from the Muda Agricultural Development Authority (MADA) shows that 60 is the average age of Malaysia’s paddy farmers, and only 15% of the Farmers Organisation Authority’s members are under 40.
In Penang, where urbanisation offers more lucrative employment opportunities in manufacturing and services, this trend is even more pronounced. Additionally, paddy farming is often less economically viable compared to other agricultural activities or non-agricultural sectors. Rising input costs, including fertilisers and pesticides, place a significant financial burden on farmers. According to a rice farmer coalition, PeSawah, only about 20% of the aid reaches farmers directly, with the majority being channelled through external agencies. Farmers have reported issues with these agencies, including the provision of unsuitable or late-delivered agricultural supplies.
Diversification and Alternative Strategies
Faced with challenges like land scarcity and climate change, it is worth considering if traditional paddy farming should remain the sole priority for rice production in Malaysia and Penang. Innovative smart farming technologies are being developed to supplement or potentially replace conventional methods. For example, research presented in “Developing industrial indoor rice production: AI using for CEA and rapid growth technology” details an advanced industrialised rice production system using AI, Controlled Environment Agriculture (CEA) and Vertical Farming (VF), demonstrating record-breaking yields (120,274kg/ha) and rapid harvest cycles (52 days). More broadly, smart farming integrates AI, IoT and big data to optimise yield estimation, irrigation, disease monitoring and quality classification. Building on Penang’s success with vertical farming (See Penang Monthly February 2021 issue), as evidenced by Kebun Kita(R), rice cultivation could benefit from a similar approach.
To entice a new generation into agriculture and address the potential risks of monoculture, Penang can strategically utilise the Tabung Usahawan Tani (TUT) to diversify its agricultural landscape. That said, TUT should continue to incentivise young entrepreneurs to explore innovative food sources and sustainable practices. This approach showcases agriculture as a dynamic, high-value sector, demonstrating that it extends far beyond physical labour and is accessible to individuals from diverse backgrounds, regardless of prior experience or rural residency.
Modernising the agricultural sector through technology and innovation can also help attract youths into the industry, especially with smart farming technologies which include drones to assist the application of pesticides and fertilisers. Given the young generation’s tech-savviness, investing in technological upskilling is crucial to attract them to agriculture, a sector vital for Penang’s food security.
One potentially controversial alternative strategy is promoting less resource-intensive and climate-resilient crops like tapioca, which, though seemingly reminiscent of pre-Merdeka times, remains a viable food source. Diversification through urban farming, technological innovation and alternative crops should not be seen as abandoning rice, but rather as a move to strengthen food security and to preserve our agricultural heritage. Ultimately, food security is a multifaceted issue requiring a holistic and adaptive approach. Malaysia’s agricultural sector needs to integrate paddy planting into a diversified framework that addresses evolving needs and challenges. And Penang should lead the way in adaptation and innovation.
References
[1] Penang International Paddy Festival (https://www.penangpaddyfestival.com/)
[2] State initiatives fuelling agricultural success: (https://www.buletinmutiara.com/state-initiatives-fuelling-agricultural-success/)
[3] Report on Climate Change Impacts in Penang
[4] Penang Agricultural Policy Report
[5] https://aliran.com/aliran-csi/hidden-crisis-malaysias-food-security-blind-spots
Hajar Ariff
graduated from Universiti Tun Hussein Onn Malaysia (UTHM) with a Bachelor of Science (Hons) in Industrial Statistics. She is an introvert who lends her time to activism whenever the need calls.