Title: Agriculture Development

3.0 Positive impact of agriculture development

3.1 Increase national income.

First of foremost, the agricultural sector plays a vital role in the national economy through its
contribution to national income and export earnings and at the same time creating job
opportunities to people especially in rural area. Moreover, this sector is a major supplier of
food as well as raw materials for resource-based industries. The first positive impact that we
can see in the agriculture development in our country is it can increase the national income.
According to GDP, Malaysia’s economy is the 38th largest in the world and the fifth largest in
Southeast Asia. Then, compared to many of its Southeast Asian neighbors, Malaysians live
comparatively comfortable lives due to the fast-growing export-oriented economy, the
nation’s relatively low-income tax, the cost of local food and transportation fuel, as well as
the completely subsidized single-payer public healthcare system. Also, Malaysia has a market
economy that is relatively open and state-oriented and has only undergone industrialization.
The Malaysian economy is quite strong and well-diversified, and in 2020, the export value of
high-tech good was US$92.1 Billion, ranking second in ASEAN. Beside that, Malaysia
exports the second-largest quantity and dollar amount of good containing palm oil after
Indonesia. It shows that the agriculture development has the crucial role in increasing the
national income and at the same time it helps the Malaysian economy to be stable.

Then, the agricultural sector is estimated to grow by 3.9 percent per year during the 12 th
Malaysian period and contribute seven percent to the country’s gross domestic product also
known as GDP in 2025. It follows the expansion of the agro-food industry, which it is
anticipated to increase at rare of 4.5 percent annually. According to Datuk Seri Dr. Ronald
Kiandee there are various program designed across all agro-food subsectors including paddy
and rice. The main purpose is to increase the production and at the same time to ensure that
the country’s food supply is always sufficient in parallel with effort to position the
agricultural sector as an important contributor to the national income. Moreover, for the
agriculture development, the government has decided to strengthen the agricultural sector in
order to provide a threefold result which is sustainable food security, more productive human
resource and efficient use of land and air. Then, the development of agriculture remains as a
catalyst for economic diversification, industrialization, and human progress through its
impact on household income, employment and community well-being.
Other than that, the agriculture industry can increase national income because the surplus
from the agricultural products that exported to the foreign countries. For instance, Malaysia
can export the excess sweet mango fruit to foreign countries such as Singapore and Brunei by
doing this it can help Malaysian’s economy and stabilize the national income. In addition,
palm fruit in Malaysia is exported to foreign countries due to the Malaysia’s palm fruit has a
large agricultural area and Malaysia has a suitable climate for growing the palm tree. The
demand for palm fruit is increasing from time to time because its function as cooking oil is
significantly in the food business sector. Also, the strong demand for palm oil has contributed
to an increase in the wages of the local employed in this palm oil cultivation business. The
national economy and local farmers both stand to gain significantly from this palm oil
farming, thus the government must urge to get involved. Then, there are various advantages if
there is increasing national income in Malaysia which is it can lower unemployment. It will
also lead to an increase in demand for labor. For instance, with the agriculture development it
helps people especially in rural areas to have the job opportunities. To sum up, through the
agricultural development such as palm oil cultivation can help in increasing the national
income and help community like farmers to have better life.
6.0 Conclusion

In a conclusion, we can conclude that there are various impacts, whether positive and
negative from the agriculture development. Therefore, countries such as Thailand, Indonesia
as well as Malaysia are competing to improve the agricultural industry in their respective
countries through the creation of versatile modern technology. Hence, all parties in each
nation must diversify their agricultural output in increasing the production of the many basic
agricultural items adored by the entire global community. This is because, in the agriculture
industry encompasses crop and livestock production, aquaculture, fisheries and forestry for
food and non-food products. It shows that the agriculture is one of the essential elements in a
country. Moreover, the invention of agriculture, which allowed people to raise domesticated
animals to produce surpluses of food that allowed people live in cities, and it was crucial in
the rise of sedentary human civilization.

Other than that, to ensure that the agriculture industry is improved, increasing the
productivity in the agricultural sector in developing countries is critical and an essential. It is
because, when the productivity of agriculture is increased it can help the agriculture industry
to develop and at the same time it can end poverty especially in the rural areas. Furthermore,
in emerging nations that heavily rely on this industry, agriculture can generate economic
growth. Also, due to its connections to both small cities and rural areas, agriculture has the
potential to be an economic driver and a source of employment in rural communities. Thus,
the government need to play an important role on this matter as it can help the people also to
our country’s economy. To sum up, the agricultural sector is of vital importance for the
region. It is undergoing a process of transition to a market economy, with substantial changes
in the social, legal, structural, productive and supply set-ups, as is the case with all other
sectors of the economy.