Kuala Lumpur (VNA) – Malaysian Minister of Economy Akmal Nasrullah Mohd Nasir confirmed on May 25 that the country’s agricultural sector is facing a multidimensional cost crisis, ranging from logistics expenses to upstream production costs.
According to Minister Akmal, shipping costs to the Middle East surge between 50 and 80% and war risk insurance premiums rise to 3%.
Agricultural input costs are adding further pressure, with local and imported NPK (nitrogen, phosphorus, potassium) fertiliser prices climbing by up to 45.5% and agricultural pesticides rising by up to 37.5%.
To protect small business households, Akmal said the government has implemented a series of mitigation measures through the Ministry of Plantation and Commodities.
Key initiatives include the implementation of targeted cash assistance programmes and the centralised bulk procurement of fertilisers and pesticides through government agencies to secure lower prices for farmers. In addition, the government has introduced logistics support measures, including tax refunds and export fee reimbursements for returned goods, in an effort to mitigate losses incurred by operators.
Beyond direct financial support, Malaysia is also promoting sustainable alternatives such as the use of organic fertilisers in place of costly imported chemical fertilisers. Modern technologies are being applied through nutrient-mapping systems in cocoa and pepper cultivation to optimise resource efficiency. These efforts are aimed not only at addressing immediate cost pressures but also at enhancing self-reliance and improving long-term production efficiency across the agricultural sector./.
Malaysia promotes open global trade
Malaysia reaffirmed its support for an open, transparent, predictable, and rules-based multilateral trading system anchored in the World Trade Organisation, while warning against the rise of protectionism and economic fragmentation, the Ministry of Investment, Trade and Industry (MITI) said in a statement on May 25.
