Too often, policy research on the paddy and rice industry in Malaysia focuses on the cheaper, medium-grained plain rice primarily produced (>90%) in Peninsular Malaysia for food security reasons. For an overview of the national paddy and rice industry, refer to KRI’s ‘Status of the Paddy and Rice Industry in Malaysia’.
A lesser focus, yet bearing a huge potential is the traditional, heirloom/specialty rice in Sabah and Sarawak.
It is believed that there are more than 500 unique paddy varieties in both these states. With numerous characteristics such as taste, colour, and texture, these varieties are candidates for the artisanal, premium segment that can spur the competitiveness of Malaysia’s paddy and rice industry.
However, several barriers remain before we can witness the rise of the next ‘Musang King’ of the country.
Barrier 1: Poor Variety Nomenclature and Seed Preservation
The paddy variety nomenclature is informal, with the same varieties being given different names by different local communities. Except for some, such as Bario Adan, Bajong, and Biris, many have not been formally characterised and certified. We acknowledge that there have been attempts to collect and characterise some of these varieties which are lauded. Therefore, we recommend that more financial and human resources be allocated to expedite the complete characterisation, recognition, and parent stock seed storing of these varieties.
Barrier 2: One-Size-Fits-All Approach to Paddy and Rice Regulations
Act 522 is acknowledged as an important act to protect the paddy and rice industry, particularly for the medium-grained cheaper plain rice type. However, while safeguarding the supply and access to rice, protective measures do not necessarily mean that it is good for competition, commercialisation, and export growth. These are two different objectives requiring separate policies and regulations. Currently, Act 522, does not differentiate between cheap medium-grained rice for food security and premium rice for commercialisation purposes. This could prove problematic because rice meant for commercialisation must have an enabling business environment, such as ease of movement across states and export opportunities.
Policy Recommendations
To overcome these barriers, a formal differentiation between the cheaper medium-grained rice and specialty rice is recommended and to be recognised in Act 522. To do this, specialty rice should first be characterised and formalised. Once this is done, we recommend to:
- Allow the export of specialty rice without needing special permissions from the Director General;
- Allow the default transportation of specialty rice across states;
- Remove input subsidies for specialty rice growers meant for export; and
- Lowering the required working capital for MSMEs for the relevant licenses.
Read the full report for a detailed explanation of the importance of East Malaysia’s heirloom specialty rice from a multidisciplinary angle and the subsequent policy recommendations made.
