Agriculture and food production and development in the 1980s

Abstract

Agriculture in Malaysia still forms the cornerstone of the economy providing the largest contribution to national output, employment and incomes. In the early 1970s, nearly one-half of the working population was in agriculture, which generated approximately 30% of the gross domestic product and accounted for 60% of the country's foreign exchange earnings. However in more recent years the rate of growth of the agricultural sector has slowed down when compared to other sectors particularly manufacturing and the service industries. This is a universal phenomenon that as a country developes, an increasing number of the population moves from primary industries to the secondary and tertiary sectors of the economy. In 1960, agriculture contributed 40.5% towards the GDP, in 1970 the corresponding percentage dropped to 31, and in 1990 the contribution of agriculture to GDP will be around 22 percent. Similarly the share of employment in agriculture is expected to decrease from 53.5% in 1970 to 35% of the total in 1990. While there is a drop in percentage in agricultural employment, this will be compensated by a corresponding increase in the numbers employed in the sectors of manufacturing, services and commerce. With development, a continous migration of rural labour to urban areas is to be expected as there are greater opportunities for employment, higher incomes and the attraction of urban facilities.