Rural development and the Fifth Malaysia Plan

The Fifth Malaysia Plan, 1986–1990, represents the fourth phase of Malaysia's Outline Perspective Plan, 1971–1990. Its strategies for the rural sector incorporate broadly technocratic policies outlined in the 1984 National Agricultural Policy (NAP). Maximization of farm incomes, and of the national income derived from agriculture, is to be based on ‘efficiency of production involving the judicious selection of economically remunerative crops and employing the most efficient technology’. The model for the efficient mode of agricultural production is the estate or plantation. The greatest challenge to this ‘modernization’ policy lies in the padi sector. Much of Malaysia's padi land remains low in productivity and many farms are too small to support a family. Although great advances have been made in padi production since 1950, poverty amongst padi households remains high and, since the mid-1970s, there has been an active withdrawal from the industry by substantial numbers of farmers. The problem facing Malaysian planners in the padi sector is that of reconciling the continuation of existing land ownership and inheritance patterns with the need for the creation of larger operating units to permit the use of modern technology and raise the incomes of those working them. In general the technical advances of the last 30 years have widened the income gap between larger and smaller farmers. Weaknesses of the plantation mode of production in the padi sector relate both to its methods per se and their inability to cope with inadequate production by very small farms or shares. With or without major land reforms, which are not on the Fifth Plan's agenda, there is an urgent need to reduce the number of households dependent on padi growing for their living.