The impact of new incentive schemes on regional competitiveness and comparative advantage of east and west coast paddy production in Peninsular Malaysia

The food security is a very vital issue in the world and closely related to the rice industry in Malaysia. In 2008, Malaysia and other countries worldwide suffered a devastating food crisis because rice exporting countries experienced widespread natural disasters caused by flooding that destroyed pa...

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Main Authors: Soh, Norhidayah Che, Ismail, Mohd Mansor, Arshad, Adzemi Mat
Format: Article
Language:English
Published: Malaysian Society of Applied Biology 2017
Online Access:http://psasir.upm.edu.my/id/eprint/63471/
http://psasir.upm.edu.my/id/eprint/63471/1/THE%20IMPACT%20OF%20NEW%20INCENTIVE%20SCHEMES%20ON%20REGIONAL.pdf
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author Soh, Norhidayah Che
Ismail, Mohd Mansor
Arshad, Adzemi Mat
author_facet Soh, Norhidayah Che
Ismail, Mohd Mansor
Arshad, Adzemi Mat
author_sort Soh, Norhidayah Che
building UPM Institutional Repository
collection Online Access
description The food security is a very vital issue in the world and closely related to the rice industry in Malaysia. In 2008, Malaysia and other countries worldwide suffered a devastating food crisis because rice exporting countries experienced widespread natural disasters caused by flooding that destroyed paddy fields. Such incidents demonstrated the importance of enhancing food security seriously. To tackle this issue, Malaysian government had taken drastic action to boost the country’s rice production through a new incentive scheme. The objectives of this study were to assess the private and economic profitability of four major granary areas in the East and West coast of Peninsular Malaysia in 2012/2013 production season using a Policy Analysis Matrix (PAM). Based on the analysis, Muda Agricultural Development Authority (MADA) recorded the highest private profit while Ketara Integrated Agriculture Development Area (IADA KETARA) recorded the highest economic profit. Analysis of comparative advantage based on Domestic Resource Cost (DRC) and Social Cost Benefit (SCB) indicators showed that all areas have comparative advantage and IADA KETARA recorded the highest value. The results also showed clearly that the DRC values were higher after the new paddy incentives.
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spelling upm-634712018-10-16T09:38:37Z http://psasir.upm.edu.my/id/eprint/63471/ The impact of new incentive schemes on regional competitiveness and comparative advantage of east and west coast paddy production in Peninsular Malaysia Soh, Norhidayah Che Ismail, Mohd Mansor Arshad, Adzemi Mat The food security is a very vital issue in the world and closely related to the rice industry in Malaysia. In 2008, Malaysia and other countries worldwide suffered a devastating food crisis because rice exporting countries experienced widespread natural disasters caused by flooding that destroyed paddy fields. Such incidents demonstrated the importance of enhancing food security seriously. To tackle this issue, Malaysian government had taken drastic action to boost the country’s rice production through a new incentive scheme. The objectives of this study were to assess the private and economic profitability of four major granary areas in the East and West coast of Peninsular Malaysia in 2012/2013 production season using a Policy Analysis Matrix (PAM). Based on the analysis, Muda Agricultural Development Authority (MADA) recorded the highest private profit while Ketara Integrated Agriculture Development Area (IADA KETARA) recorded the highest economic profit. Analysis of comparative advantage based on Domestic Resource Cost (DRC) and Social Cost Benefit (SCB) indicators showed that all areas have comparative advantage and IADA KETARA recorded the highest value. The results also showed clearly that the DRC values were higher after the new paddy incentives. Malaysian Society of Applied Biology 2017 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/63471/1/THE%20IMPACT%20OF%20NEW%20INCENTIVE%20SCHEMES%20ON%20REGIONAL.pdf Soh, Norhidayah Che and Ismail, Mohd Mansor and Arshad, Adzemi Mat (2017) The impact of new incentive schemes on regional competitiveness and comparative advantage of east and west coast paddy production in Peninsular Malaysia. Malaysian Applied Biology Journal, 46 (3). 207 - 212. ISSN 0126-8643 http://www.mabjournal.com/images/46_3_October_2017/46_03_24.pdf
spellingShingle Soh, Norhidayah Che
Ismail, Mohd Mansor
Arshad, Adzemi Mat
The impact of new incentive schemes on regional competitiveness and comparative advantage of east and west coast paddy production in Peninsular Malaysia
title The impact of new incentive schemes on regional competitiveness and comparative advantage of east and west coast paddy production in Peninsular Malaysia
title_full The impact of new incentive schemes on regional competitiveness and comparative advantage of east and west coast paddy production in Peninsular Malaysia
title_fullStr The impact of new incentive schemes on regional competitiveness and comparative advantage of east and west coast paddy production in Peninsular Malaysia
title_full_unstemmed The impact of new incentive schemes on regional competitiveness and comparative advantage of east and west coast paddy production in Peninsular Malaysia
title_short The impact of new incentive schemes on regional competitiveness and comparative advantage of east and west coast paddy production in Peninsular Malaysia
title_sort impact of new incentive schemes on regional competitiveness and comparative advantage of east and west coast paddy production in peninsular malaysia
url http://psasir.upm.edu.my/id/eprint/63471/
http://psasir.upm.edu.my/id/eprint/63471/
http://psasir.upm.edu.my/id/eprint/63471/1/THE%20IMPACT%20OF%20NEW%20INCENTIVE%20SCHEMES%20ON%20REGIONAL.pdf