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Malaysia adopts reverse investment to secure critical food supply

Malaysia’s agriculture ministry leads a reverse investment strategy in cattle, rice, dairy and seeds to safeguard national food security and reduce import reliance.

PUTRAJAYA: The Ministry of Agriculture and Food Security (KPKM) is spearheading a reverse investment strategy this year to protect the nation’s supply of critical food commodities.

Minister Datuk Seri Mohamad Sabu said the approach targets key sectors vital to the national food chain, namely cattle, rice, dairy, and seeds and breeds. He stated this move aims to move beyond short-term measures and secure the food supply chain against global disruptions.

“This approach will target key sectors, namely cattle, rice, dairy and seeds and breeds, seen as vital to the national food chain and must be protected from global supply disruptions,” he said during the ministry’s 2026 New Year Address.

The reverse investment model involves direct investment in food production assets like land, technology, and seeds. Its goal is to reduce import dependence and ensure a stable food supply during market or climate shocks.

Mohamad said KPKM welcomes government-linked companies and government investment firms as strategic partners in this initiative. He emphasised that such involvement is key to securing national stakes in the critical supply chain and boosting long-term food sovereignty.

The strategy is designed not to replace local farmers but to act as a strategic buffer. It aims to ensure supply chain sustainability during unforeseen events like natural disasters.

“This reverse investment will serve as a strategic buffer to keep the supply chain stable during unforeseen shocks,” he explained.

Concurrently, the ministry is focusing on domestic investment to boost the agri-food sector’s capacity and competitiveness. Five strategic areas have been identified for this domestic push.

These priorities are developing the aquaculture industry, using Geographic Information Systems in production, grain corn cultivation, expanding pineapple farming, and boosting domestic seed and breed production.

KPKM secretary-general Datuk Seri Isham Ishak said the reverse investment strategy acts as a national safeguard. He provided an example of growing rice abroad to ensure supplies are available for import if a domestic crisis occurs.

“In preparation for any disaster, we have set up reverse investment measures, like growing rice abroad, so supplies are available if needed,” he added.

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