Recently it was shared in the news that agriculture and agro industry-based organisation, Tradewinds Plantation Bhd submitted a proposal to provide its services as the central importer for grains in Malaysia. Among other things proposed, Tradewinds aimed to reduce foreign control in the country’s food supply of the grains as well as ensuring that the commodity’s ‘Food Security’ is guaranteed. However, without the support of the government, it will be difficult for Tradewinds to make a significant breakthrough and long-term change for the betterment of this country moving forward.
The article in the English daily highlighted that Malaysia’s food supply is currently controlled by foreign entities. According to the research pertaining to Malaysia’s food supply, the grain storage operators by which are foreign-controlled hold 95% of the supply into our country. This is an alarming scenario as it is similar to a somewhat cartel-related scenario as the country is fully dependent on these companies to import the grains supply.
The concept of a central importer is not new in the industry as similar practices have been applied with BERNAS for rice and the formula has proven a success throughout the years. Unlike other countries, Malaysia has not experienced any shortage of rice supply despite the previous global food crisis or the issues with poor paddy fields. This concept will also ensure that the commodity prices can be controlled and mitigated.
It is essential for Malaysia’s grain industry to introduce a central importer concept just like countries in Singapore, Thailand, Indonesia, Egypt and Saudi Arabia, which has proven to be more efficient than various importers. With the National Central Importer model, the transfer pricing will also be eliminated through supervision and regulation by government agencies.
However, it may only be possible for the country and especially the public to obtain substantial benefits if the Government proceeds to take steps in introducing the concept of central importers through strategic partnerships with corporate organisations.
The proposal of appointing a private company which is willing to assist the government in centralising and taking responsibility for the current scenario should be considered and reviewed further. As a country that is progressing, such a collaboration between the government and private sector will no doubt, help us move towards that direction.
By: Syntax