Agriculture contributes to Malaysia's GDP over time as part of the primary economic sector. It is characterized by a dualistic system of plantation and smallholder sectors. While agricultural growth in the 7th Malaysia Plan was below targets, the 8th Plan aims for 3% annual growth. National agricultural policies have positively impacted food production to meet domestic needs and expand exports, while poultry production has increased due to integrated farming systems from fast food chains. Agriculture consistently generates trade surpluses for Malaysia due to palm oil exports, which made up 52% of agricultural exports in 2002. Agricultural employment has declined to 12% of total employment from 42% as Malaysia transformed to a more industrialized economy.

1. Introduction.
- Agricultural is part of the primary sector in the
Malaysian economy which contributes to the gross
domestic product (GDP) over time
Contribution of Agricultural to the Gross Domestic
Product (GDP).
- Agricultural in Malaysia is characterized by a dualistic
system where the plantation sector exists side with
smallholder sector.
BAB 8: Agricultural and the Malaysian
Economy

2. Agricultural Growth
- In the 7th Malaysia Plan(1995-2000) the
agricultural sector grew at 1.2 % per annum,
lower than the targeted 1.9 %.
- The 8th Malaysia Plan (2001-2005) targets the
sector to grow at 3.0 annually.

3. Food Commodities
 The implementation ofThe third National
Agricultural Policy(NAP) to meet the national
food requirements as well as broaden the
export capacity of the agriculture sector have
positive impacts on food production.
 Poultry production increase as due to the
integrated poultry farming system introduced
by fast food chains such as Kentucky Fried
Chicken. Poultry is the most popular meat
consumed due to pricing and religious
acceptibility.

4. International Trade
Agriculture
 Over the years, agricultural trade has
consistently generated trade surpluses.
 In 2002, against a backdrop of USD 7,375
million exports and USD 4,300 imports, a
surplus of USD 3,075 million was
accumulated, due mainly to palm oil.
 In fact, in 2002 palm oil exports contributed
almost 52% of export share in agriculture.

5. Agricultural Employment
 Currently the agriculture sector accounts for
about 12% of total employment in the
country from a high of 42% in the 1980,
reflecting the transformation from an
agricultural to an industrialized economy.