When we think of scenic landscapes in Malaysia, far from the bustle of metropolitan cities, we picture the paddy fields of Kedah, the plantations of Pahang, and the indigenous crops of Sabah and Sarawak. Agriculture has long been the backbone of Malaysia, with global agricultural trade reaching US$61.3 billion in 2022. It cannot be understated how much the industry has had in Malaysia’s burgeoning economy.

But like any industry, it faces a crucial challenge: ensuring its long-term sustainability. This opens questions for the future, as to how we plan to meet the requirements of feeding an ever-growing population.

Modern Agriculture Embraced by Young Minds

While modern agriculture is typically attributed to large agribusinesses that hold a tight grip on certain facets in the industry, recent years have shown that even small SMEs have the potential to leave a big impact.

Enter small and medium enterprises (SMEs). These highly ambitious businesses play a crucial role in the economy, showcasing innovation and surprising levels of resilience in a competitive market. Unlike traditional, resource-intensive methods of bigger agribusinesses, agropreneurs—a portmanteau of agriculture and entrepreneur—are pioneering the adoption of contemporary agricultural practices, in place of conventional methods, to pave the way for a more sustainable future for urban agriculture.

In this article, we will be laying down a basic framework for the key advantages of being an agropreneur in Malaysia.

• Smart Farming

• Agility and Innovation

• Sustainable Practices

• Government Initiatives

Smart Farming

The heart of this agricultural transformation lies in smart farming - the integration of technology into our agricultural practices. Also known as precision farming, this approach utilises the vast array of compatible tools made possible by today’s innovative technology to achieve optimal yields, all while having the ability to identify potential problems before they happen.

Here are some examples of how precision farming tools in agriculture can be harnessed by SMEs:

a. A macro cloud-based farm system to help manage tasks, inventory, and data.

b. Internet of Things (IoT) sensors that will help detect soil moisture, temperature, and light levels.

c. Blockchain for farm-to-consumer food traceability.

d. AI-assisted weather forecasting to help accurately predict weather patterns to mitigate damage to crops.

Agility and Innovation

In contrast to their larger counterparts, namely MNCs and larger corporations, which are burdened by complex hierarchies and strict protocols, SMEs have the privilege of reacting swiftly to changing market preferences and demands.

This adaptability allows agropreneurs to readily experiment with novel technologies, such as the aforementioned precision farming tools, and new-age methods like vertical farming techniques, all without the restrictions that a larger business might have.

Another perk of being a tech-driven agropreneur comes from the close relationships fostered with local farmers, and collaborative rapport with the potential of being the seedbed for innovation. In genuinely understanding the challenges and needs of farmers, SMEs will be better equipped to develop more highly targeted solutions.

Sustainable Practices

Leaning away from the traditionally established, resource-heavy agricultural methods of bigger agribusiness, SMEs are not restricted to any predetermined practices. This allows agropreneurs to experiment with more organic and sustainable practices such as watersaving irrigation systems and organic farming.

However, this openness to change is not an arbitrary market trend. A market study done in 2023 showed that 8 out of 10 Malaysian consumers were actively trying to minimise the impact on the environment. In truly understanding that sentiment, embracing sustainable practices allows agropreneurs an undeniably larger share of a growing and highly profitable niche.

Government Initiatives

Starting a technologically inclined agriculture business is not without its hurdles. For one, a steep learning curve is evident, requiring thorough comprehension of the specifics and correlation between technology and application. Second, being an agropreneur, just like for any entrepreneur, is a costly journey.

This is where the Malaysian government and relevant authorities play a pivotal role in supporting the rise of smaller agribusinesses. Initiatives such as Program Agropreneur Muda/Geran Agropreneur Muda or Young Agropreneur Programme by the Ministry of Agriculture and Food Security (KPKM) aim to attract aspiring agropreneurs to the industry through grants and programmes that provide crucial assistance and funding for development.

Another initiative is the Inisiatif Usahawan Tani or Farmer Entrepreneur Programme (INTAN), a collaborative effort between the Ministry of Agriculture and Food Industries (MAFI) and various other agencies to equip aspiring SMEs with financial literacy training and tools needed to navigate the machinations of running a technology-assisted farm.

Sowing the Seeds to a Brighter Future

The future of Malaysian agriculture is bright, driven by a generation of passionate and techsavvy agropreneurs. By embracing innovation, prioritising sustainability, and leveraging available resources, you can become a driving force in the transformation of Malaysian agriculture. Together, we can cultivate a future where food security and environmental responsibility become a mainstay of the industry.

OCBC Bank recognises the unique needs of Malaysian agricultural SMEs. We offer a comprehensive suite of financial solutions tailored to support your journey forward. Whether it is to fund initial investments in smart farming technologies or working capital to expand your operations, we have the resources readily available to empower you. Additionally, solutions linked to the BNM High Tech & Green (HTG) Fund can help you access financing for sustainable practices, ensuring your business thrives in harmony with the environment.

By partnering with OCBC Bank through our Business Banking solutions, you gain access to not only financial resources but also expertise and guidance. We are committed to supporting the rise of a new generation of agropreneurs who will actively shape the future of Malaysian agriculture.