Panel Discussion: Achieving Food Security for all Malaysians Venue - PowerPoint PPT Presentation

Panel Discussion: Achieving Food Security for all Malaysians Venue : Victory Room, Mercu UEM : 2 nd August 2019 Date

Achieving Food Security for all Malaysians: Highlights Tan Zhai Gen for Jomo KS and Tan Zhai Gen 2 nd August 2019

+ Achieving Food Security for all Malaysians Food Security • Food Availability: Enough supply for whole nation • Food Affordability: Households and individuals able to afford food • Food Accessibility: Individuals able to obtain food easily • Nutrition: Households and individuals Khazanah Research Institute eating healthily • Data misleading: Undercount foreign labour

+ Achieving Food Security for all Malaysians Food Availability: Sufficient supply, but oligopolistic control due to permits Net Food Supply & Net per capita Dietary Energy Supply per Day Food Supply 1961 = 100 7000 600 5830 x 4.7 6000 500 4872 5000 400 kcal/capita/day 1961 = 100 4000 300 3000 x 1.4 200 2000 Khazanah Research Institute 100 1000 0 0 1961 1964 1967 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 1961 1964 1967 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 Food supply per person per day Dietary Energy Supply per Day Food Supply Source: FAO (various years) Source: FAO (various years)

+ Achieving Food Security for all Malaysians Food affordability: Food prices increased more than CPI • Food and Non Alcoholic Beverages prices have increased more than overall CPI • Of all food items, prices of food away from home increased more than food at home F&NAB, Food at Home, Food Away From Home, and Overall CPI and Food CPI, 2003 to 2017 Coffee, Tea, Cocoa, and Non-alcoholic Beverages Indices, January 2010 – December 2017 2003 = 100 2010 = 100 180 140 F&NAB x 1.7 170 Food at Home 160 130 Food Away from Home 150 x 1.4 Khazanah Research Institute 120 140 Coffee, Tea, Cocoa and Non- alcoholic Beverages 130 110 120 110 100 100 Jan-2010 Jul-2010 Jan-2011 Jul-2011 Jan-2012 Jul-2012 Jan-2013 Jul-2013 Jan-2014 Jul-2014 Jan-2015 Jul-2015 Jan-2016 Jul-2016 Jan-2017 Jul-2017 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 CPI Food and Non Alcoholic Beverages

+ Achieving Food Security for all Malaysians Food affordability: Food prices rose less than income • Median household income doubled from 2007 to 2016, but food at home increased only by 43.9% • However, median wages increased in tandem with food prices Growth of median household income versus Growth of median wages versus growth of growth of F&NAB Index, 2007-2016 F&NAB Index, 2010-2016 2007 = 100 2010 = 100 220 135 130 200 125 180 120 160 Khazanah Research Institute 115 140 110 120 105 100 100 2010 2011 2012 2013 2014 2015 2016 2007 2009 2012 2014 2016 Food & Non-Alcoholic Beverages Food & Non-Alcoholic Beverages Median Wages Median Household Income

+ Achieving Food Security for all Malaysians Food Security ≠ Rice Self -Sufficiency • Rice self-sufficiency legacy of colonial history • British colonial policy: Produce, not import rice to maximize net foreign exchange earnings Post-war memories: inadequate food during • Japanese Occupation and post-war food shortages • Rice self-sufficiency trapping rice farmers in Khazanah Research Institute poverty? Privatizing monopoly profits via Bernas • Subsidy ‘leakages’: dubious benefits to • farmers

+ Achieving Food Security for all Malaysians ‘Jihad Memerangi Orang Tengah’: Instead, promote competition for farmer, consumer welfare • Rural middlemen: marketing and credit functions • ‘Rents’ eroded by broadening options for farmers via market information, improved transport infrastructure, Khazanah Research Institute alternative marketing options • ‘Jihad’ ineffectual, but eliminated many small and medium Malay ‘middlemen’

+ Achieving Food Security for all Malaysians Malaysian milk prices too high • Global dairy prices fluctuating, but Malaysian prices have increased • Falling global dairy prices since 2014, but not Malaysian dairy prices Average Malaysian Dairy CPI vs Australia, Average Malaysian Dairy CPI vs FAO Dairy CPI, New Zealand Export Prices Index, 2005 - 2005 - 2017 2016 2005 = 100 2005 = 100 Annual FAO Dairy Price Australian Dairy Products & Eggs EPI Index 190 190 New Zealand Dairy Products EPI Malaysian Milk, Cheese Malaysian Milk, Cheese and Eggs CPI and Eggs CPI Fresh and Reconstituted 170 170 Milk CPI 150 150 Khazanah Research Institute 130 130 110 110 90 90 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Achieving Food Security for all Malaysians, KRI (forthcoming)

+ Achieving Food Security for all Malaysians Beef prices: oligopolistic behaviour? • In 2014, beef exported from India sold for average of USD2.90/kg, but much more expensive in Malaysia, at USD7.82/kg (>2.5x) • Import licences for frozen beef to 148 companies, but almost half of Khazanah Research Institute frozen buffalo beef to 5 importers and a third of frozen cattle beef to 5 importers: oligopolistic?

+ Achieving Food Security for all Malaysians Nutrition more dire issue • Malaysia currently facing ‘ double burden ’ of malnutrition – rising levels of obesity, still high levels of stunting • ‘Hidden hunger’: Micronutrient deficiencies, e.g., anaemia Khazanah Research Institute • Securing healthy diets part of food security – upcoming Addressing Malnutrition in Malaysia report

+ Achieving Food Security for all Malaysians Food safety requires due consideration • Lax enforcement of existing regulations affects health and food export reputation. • GE crops will require proper scientific scrutiny. • Rise of AMR: Excessive use of antibiotics in food production increases microbial resistance. Khazanah Research Institute • Excessive pesticides use contaminate food consumed and threaten the health of producers.

+ Achieving Food Security for all Malaysians Emphasize nutrition, food safety • Need to move beyond rice self-sufficiency. Ensuring affordable healthy diets for good nutrition more urgent, relevant • Multifaceted policy to ensure healthy, diversified diets, good nutrition for all • Alternative policy options to strengthen both food security and farmer wellbeing Khazanah Research Institute • Food safety should also get due policy considerations, e.g., agro-chemicals, AMR • Careful with GEOs; seed regulations

Thank You