Revitalisation of agriculture: the basis of industrial growth and restructuring

Abstract

Economic development brings along major transformation to the Structure of the economy, characterised by a relative decline in the contribution of agriculture to GDP and employment along with relative increase in the contribution of the industrial and services sectors. This process involves the transformation of the economy from that of a predominantly rural and agricultural base to that which is predominantly urban, industrial and service oriented in nature. Under this structural transformation, a number of issues pertinent to agriculture warrant some attention. These issues are: (i) what is the nature and role of agriculture in this transformation process. (ii) what is the relationship between agriculture and the non-agricultural sectors, especially industry, in this transformation process. (iii) what is the scope for revitalising the agricultural sector, in the face of its declining role, with a view of a balanced growth strategy. This paper attempts to discuss these issues related to the agricultural sector of Malaysia in the context of structural transformation which is now taking place.