Rafizi: Malaysia’s Development Spending Fails to Lift Agriculture, Risks Long-Term Economic Imbalance

KUALA LUMPUR: Former economy minister Rafizi Ramli has cautioned that Malaysia’s continued neglect of agriculture in its development expenditure (DE) could undermine long-term economic resilience.

Rafizi said that although the government approved RM84.7 billion in DE for 2025, only around RM80 billion is expected to be spent — about RM6 billion short of plan. For 2026, the allocation is projected at RM81 billion, nearly unchanged from this year and about 6 per cent lower than the original 2025 target.

He highlighted that nearly half of the economic sector’s DE, or RM17.5 billion, goes to transportation projects such as LRT, MRT and highways, while agriculture receives only about RM550 million — roughly 1 to 2 per cent of the total.

Lifting Agriculture

“We keep talking about food prices and import dependency, but the budget for modernising agriculture remains small,” Rafizi said, adding that this pattern risks strengthening infrastructure without improving the real productive capacity of the economy.

“Development expenditure is not just numbers. It shapes the future — jobs in rural areas, productivity, and food security,” he said. Rafizi urged a strategic rebalancing to ensure agricultural investment matches national priorities for sustainable growth.

Business News