Economy Minister Akmal Nasrullah Says Nearly 180,000 Paddy Farmers Receive RM200 Advance Incentive

KUALA LUMPUR,June,2026 – Economy Minister Datuk Seri Akmal Nasrullah Mohd Nasir said the government’s RM200 per hectare advance ploughing incentive has reached nearly 180,000 paddy farmers, as Malaysia continues efforts to support agricultural production and strengthen food security.

The one-off advance payment was introduced for paddy farmers in Peninsular Malaysia to help them prepare for the first paddy planting season of 2026. According to Akmal Nasrullah, the payments began in phases on May 19 and were designed to reduce the early capital burden faced by farmers before planting work begins.

He said that 90 per cent, or nearly 180,000 farmers, had received the payment so far. The update was shared during an online briefing on the global supply crisis, where the government also outlined its wider response to external economic and supply chain pressures.

The incentive is important because paddy farmers often need early cash flow to cover costs such as ploughing work, machinery rental, land preparation, fuel and other operational needs before income from harvests is generated.

Under the previous process, farmers could only claim the Ploughing Incentive for Paddy Farmers after ploughing work was completed. Agriculture and Food Security Minister Datuk Seri Mohamad Sabu had earlier said the advance payment would help farmers begin preparations more smoothly for the 1/2026 planting season.

The initiative was previously approved by the government as part of its response to rising costs faced by farmers. Prime Minister Datuk Seri Anwar Ibrahim announced in May that the RM200 per hectare advance aid was expected to benefit nearly 240,000 registered paddy farmers nationwide, with a financial implication of RM48 million.

The aid also reflects the government’s focus on protecting local rice production amid global uncertainty. Paddy farming remains a key part of Malaysia’s food security strategy, especially as global supply disruptions, higher input costs and weather-related risks continue to affect agricultural sectors.

For farmers, early payment can make a major difference. Many smallholders need upfront capital before they can begin planting activities. If funding is delayed, land preparation may be affected, which can then disrupt the planting schedule and overall harvest cycle.

The RM200 advance incentive is therefore not only a welfare measure, but also a production support mechanism. By helping farmers begin work on time, the government aims to reduce disruption to paddy cultivation and support stable rice supply.

Akmal Nasrullah also said Malaysia has been managing global supply disruptions through a data-driven approach, cross-ministerial coordination and targeted interventions. He said the government had developed 113 high-frequency indicators to support faster risk assessment through a global supply crisis monitoring dashboard covering economic, energy, food, commodity and logistics indicators.

This monitoring system is significant because food and commodity markets can be affected quickly by external shocks. Conflicts, fuel price movements, logistics disruption, extreme weather and currency fluctuations can all influence the cost of agricultural production and food prices.

The Economy Minister said food price monitoring is also continuing through the PriceCatcher system, with the Ministry of Domestic Trade and Cost of Living tracking 316 essential items across more than 2,000 retail premises nationwide.

The use of PriceCatcher allows the government to monitor price movements more closely and identify early signs of pressure in the market. This is especially important for basic food items, where sudden price increases can affect household spending and public confidence.

Akmal Nasrullah said 28 policy papers across 13 economic sectors have been discussed under the government’s M10 mechanism. From these discussions, 126 decisions were recorded, with 15 fully implemented and 111 still under active implementation as medium- and long-term measures.

According to him, this shows that the M10 mechanism is not only a discussion platform, but also a working structure where policy decisions are translated into implementation by ministries and agencies.

The paddy incentive fits into this broader approach. Instead of waiting for cost pressures to worsen, the government is trying to provide earlier support to groups that are directly exposed to rising operational costs.

Paddy farmers are especially vulnerable because their income depends on planting cycles, weather conditions, input prices and market stability. When costs rise before planting begins, farmers may face difficulty securing enough capital to proceed efficiently.

The government’s decision to provide the RM200 per hectare payment in advance helps reduce this pressure. It also supports the continuity of local rice production, which is important for national food resilience.

Food security remains a major policy concern for Malaysia. Although the country imports some rice, domestic paddy production is still important for reducing dependence on external supply and protecting consumers from global market shocks.

If local production is disrupted, Malaysia may become more exposed to international rice price movements. This can affect consumers, especially lower-income households that spend a higher share of income on basic food.

The incentive also comes amid wider concern over global supply chains. The Economy Ministry’s briefing referred to the government’s response after 100 days since the onset of the crisis in West Asia, which has affected global energy, logistics and commodity markets.

Such external pressures can indirectly affect Malaysian farmers. Higher fuel prices can raise machinery and transport costs, while disruptions to fertiliser or input supply can increase overall production expenses.

By providing targeted aid to paddy farmers, the government is attempting to cushion part of that impact and ensure planting activities can continue without major delays.

At the same time, the policy highlights the importance of coordination between ministries. Paddy farming support involves not only the Economy Ministry, but also the Agriculture and Food Security Ministry, the Finance Ministry, domestic trade authorities and agencies responsible for monitoring supply and prices.

For the public, the success of the incentive will be judged by whether it helps farmers reduce cost pressure and whether local rice supply remains stable during the planting and harvest cycle.

For farmers, the key issue is timely payment. Akmal Nasrullah’s update that 90 per cent of recipients have already received the incentive suggests that the payment rollout has reached most eligible farmers under the current phase.

However, the remaining recipients will still require follow-up to ensure that aid reaches them before the planting window is affected. In agricultural policy, timing is critical because delays can have real consequences on production.

the RM200 advance paddy incentive shows the government’s effort to provide direct, early-stage support to farmers while managing wider risks from global supply disruptions. With nearly 180,000 farmers already receiving payment, the programme is now a key part of Malaysia’s food security and agricultural support strategy for the 2026 planting season.