Widespread use and scaling of digital agriculture technologies (DATs) are expected to accelerate Malaysia's progress toward becoming a high-income nation, according to a World Bank report. The Malaysia Economic Monitor report, titled "Farming the Future: Harvesting Malaysia’s Agricultural Resilience through Digital Technologies," emphasizes that DATs can significantly boost economic growth by enhancing productivity in the vital agriculture sector.
Recent data shows a 7.2 percent growth in Malaysia's agriculture sector in the second quarter of 2024. This positive trend contributes to an optimistic economic forecast for the country, with an overall growth prediction of 4.9 percent for 2024, up from 3.7 percent in 2023.
Rafizi Ramli, Malaysia's Minister of Economy, stated, "We are committed to transforming Malaysia’s agrofood sector to ensure it remains an engine of sustainable growth and poverty reduction." He highlighted the importance of equitable access and tailored digital solutions for rural producers.
The report suggests that beyond increasing productivity, DATs can improve marketing efficiency, export competitiveness, food security, climate resilience, and social equity. Smallholder farmers stand to gain significantly from digital solutions such as data platforms and precision agriculture.
Aligning with government efforts to modernize agriculture across the country, the report notes a historically low adoption rate of new technologies as a key challenge. It also underscores that encouraging DAT uptake could support other government goals like enhanced productivity and stronger market competition.
Zafer Mustafaoğlu, World Bank Country Director for the Philippines, Malaysia, and Brunei said, “Digital agriculture technologies have the potential to transform Malaysia's agrofood system.” He noted that these technologies could reduce costs and support value chains while ensuring fair information access crucial for sustained economic growth.
To maximize benefits from DATs in rural areas and agrofood sectors, the report outlines three priority actions: increased financing for public goods supporting DAT implementation; greater investment in innovation ecosystems; and creating an enabling environment through strategic data governance frameworks.