Stagnating yields, unyielding profits: The political economy of Malaysia's rice sector

Abstract

Since the 2008 rice crisis, Malaysia's rice policies have been caught between government efforts to raise production and its support of the country's monopoly rice importer (Bernas). This article argues that when the politics behind the country's policies are revealed, the paradox is more apparent than real. The three principal policy components — gratifying Barisan Nasional's coalition partners in East Malaysia by expanding the acreage devoted to rice; buttressing the rural Malay economy by providing subsidies through a yield-enhancing programme; and relying on big business for financial support (Bernas's new owner is one of Malaysia's richest businessmen) — aim to serve the same end: to perpetuate UMNO's political power amid increasing electoral competition.