Malaysia to Offer Crop Insurance as Part of Food Security Push

A farmer in a paddy field in Sekinchan, Selangor, Malaysia, on Tuesday, May 24, 2022. Malaysia will allow all parties to import food to ensure adequate supplies in the country, according to Prime Minister Ismail Sabri Yaakob. Malaysia joins other governments in taking steps to secure their own supplies with food costs surging to all-time highs as the war in Ukraine chokes crop supplies, piling inflationary pain on consumers and worsening a global hunger crisis. Photographer: Samsul Said/Bloomberg , Bloomberg

Ravil Shirodkar, Bloomberg News

Aug 6, 2022

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(Bloomberg) -- Malaysia will offer government-backed insurance plans to help compensate farmers for losses after natural disasters, as part of measures to strengthen food security.

The Agro-Food Takaful Insurance Scheme will be launched through the Ministry of Agriculture and Food Industries and will initially be offered to the nation’s 189,500 rice farmers, Prime Minister Ismail Sabri Yaakob said.

The insurance cover will be expanded in stages to sectors including fisheries and other sub-sectors of the food industry, he said at the launch of the 2022 Malaysian Agriculture, Horticulture and Agro Tourism Exhibition on Saturday.

Malaysia, a net food importer, is taking steps to enhance domestic supplies of grains and poultry as nations around the world battle rising food costs amid disruptions caused by Russia’s invasion of Ukraine. Malaysia remains among countries without crop insurance unlike neighbors including China and Indonesia, state news agency Bernama reported in July, citing Agriculture Minister Ronald Kiandee.

READ: Malaysia Rice Stocks Enough to Meet 7 Months of Demand

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