Call for Sarawak High-Value Agriculture Fund to drive smart farming, innovation

KUCHING (Oct 13): The federal and state governments should collaborate to establish a Sarawak High-Value Agriculture Development Fund to accelerate the state’s agricultural transformation through smart farming, precision livestock management, and digital technologies, said Kuching Chinese General Chamber of Commerce and Industry (KCGCCI) director of agriculture Loh Siaw Kuei.

He said the proposed fund would systematically promote the modernisation of the sector, supported by low-interest loans, tax incentives, and innovative financing schemes for young farmers and agri-SMEs.

Loh said such measures would make the Budget 2026, which continues the spirit of the Madani Economy Framework, more impactful for Sarawak by addressing on-the-ground realities and unlocking the state’s full agricultural potential.

“Sarawak possesses vast land, water, and ecological resources, making it one of the states with the highest agricultural potential in Malaysia.

“However, the sector continues to face challenges — including labour shortages, rising costs, limited technology adoption, and constrained market access,” he said in a statement.

He noted that while the overall direction of Budget 2026 is commendable, Sarawak’s agricultural transformation requires more precise execution and locally tailored strategies to achieve qualitative progress.

“The Budget would be more impactful if it focused more on digitalisation, mechanisation, and integrated production-to-market systems,” he added.

Loh also emphasised the importance of agricultural financing innovation, saying that many young people and agri-startups face funding and risk barriers in the early stages.

“Flexible financing and insurance support from the government would attract more youth into modern agriculture, transforming it into a dignified and promising profession,” he said.

On industry potential, Loh said Sarawak’s bird’s nest, pepper, durian, cocoa, and tropical fruit sectors could form a complete high-value agricultural chain when combined with downstream processing, packaging, branding, and export initiatives.

“For instance, the bird’s nest industry could greatly benefit from government support in quality certification, smart monitoring, and export traceability systems. This would enhance international competitiveness while uplifting rural communities,” he noted.

Loh further proposed that the government strengthen collaboration between government, academia, and industry to build a vibrant agricultural innovation ecosystem through research and talent development.

“Sarawak agriculture must not only ‘go global’ but also ‘bring innovation home’. We must attract investment and technology while nurturing our own professional talent to sustain competitiveness,” he said.

To ensure long-term and coherent progress, Loh suggested forming a ‘Sarawak Agriculture and Food Innovation Council’ to coordinate modernisation policies across sectors.

“Ultimately, what matters most is not how much money is allocated, but how precisely and consistently it is implemented.

“Sarawak’s agriculture must advance beyond raw production toward a high-value, sustainable, and branded future — building Sarawak’s new agricultural advantage in the regional economy,” he said.