FACTORS AFFECTING IMPORT OF RICE IN MALAYSIA

Factors Affecting Import of Rice in Malaysia

Table of Contents

CHAPTER ONE4

INTRODUCTION4

1.0 Overview of the Malaysian Economy4

1.1Rice Production Policy6

1.2.Food Crisis And Food Security7

1.3.Rice Self Sufficiency Level9

1.4Distribution Of Paddy Areas10

1.5Importation Of Rice14

1.6Domestic Rice Consumption Versus Population15

1.7 World Rice Price17

1.8 Problem Statement18

1.9Objectives19

1.10 Significance Of Study19

1.11Limitations Of Study19

1.12Plan Of The Study20

Chapter Two21

Literature Review21

2.1.Food Crisis And Food Security21

2.2Self Sufficiency Level22

2.3.Distribution Of Paddy Areas23

2.4Importation Of Rice28

2.5Domestic Rice Consumption Versus Population29

2.6 World Rice Price30

2.7Theories on Trade32

CHAPTER THREE45

METHODOLOGY45

3.1Introduction46

3.2Model46

3.3Methodology47

3.4Definitions Of Dependent Variable And Independent Variables47

3.5Analysis Procedures53

3.5Summary Of Expected Relationship Between Dependent Variable And Independent Variables56

3.6Date Sources57

Chapter 4:58

FINDINGS AND DISCUSSION58

4.1. Which countries show preliminary import opportunities for Thai products?60

4.2. Detecting possible import opportunities62

Chapter 564

CONCLUSION64

5.1. The selection of realistic export opportunities64

5.2. An analysis of Thailand's realistic export opportunities66

5.3. Realistic export opportunities in the Asia-Pacific region71

5.4. Some tentative conclusions74

References77

Appendix79

Factors Affecting Import of Rice in Malaysia

CHAPTER ONE

INTRODUCTION

1.0 Overview of the Malaysian Economy

Malaysia consists of a peninsula bordering Malaysia in the north and the northwestern side of the Island of Borneo with a total land area of 330,000 square kilometers. Most of the peninsula is covered in tropical forest, much of it in one central mountain range. Coastal plains dominate the Borneo states and the interior is mountains. The Malaysia rice industry has always been accorded special treatment based on the strategic importance of rice as a staple food commodity. The industry was regulated and promoted through the establishment of specialized bodies beginning with the Rice Commission 1933, the Federation Of Malays Rice Committee in 1956 and subsequently the National Paddy and Rice Board (LPN) in 1971. The Malaysian government undertook massive investment in infrastructure and support services to enhance productivity and provided various price and income support measures to sustain profitability and producer incomes. These measures were aimed at maintaining a specific level of self sufficiency in rice. In year the 1994 LPN was corporatized and subsequently in 1996 its commercial activities were divested to the private sector. However, Government retained the regulatory functions of LPN. This move was aimed at reducing the government's direct involvement in commercial activities and further liberalizing the industry. With agriculture as one of the five major economic thrusts that will be given priority under the East Coast Economic Region (ECER) announced by the Prime Minister recently, the sector is, once again, put under the limelight. This latest initiative by the government is indeed timely and pertinent as, for agriculture to take its rightful place in economic development, its real contribution to national development must be recognized by decision makers.

Despite the decline in its relative contribution to the economy, agriculture continues to be

accorded high priority in national development planning. This is partly because the incidence

of relative and hard-core poverty within this sector still remains significant, especially among

paddy farmers, coconut and rubber smallholders, fishermen and other agricultural workers.

As agriculture continues to be an important source of income and livelihood for a majority of

the rural population, its growth is seen as vital for rural development and reducing the rural urban ...