FFTC Agricultural Policy Platform (FFTC-AP)

ABSTRACT

The livestock industry in Malaysia plays a critical role in food security and economic development, yet it faces persistent structural challenges despite decades of government intervention. This article reviews the evolution of the sector, particularly the ruminant subsector, across key policy phases. While poultry and eggs have achieved self-sufficiency, ruminant production remains insufficient, leading to a heavy reliance on imports of beef, mutton, and milk. The Malaysian government introduced several policies and initiatives to modernize this sector, including feedlot systems and public-private partnerships. However, these initiatives yielded modest results due to issues such as feed dependency, limited technology adoption, and ineffective breeding programs. The article highlights both the successes and shortcomings, emphasizing the need for a transformative and sustainable approach. Despite these challenges, the Malaysian government remains optimistic that the livestock industry will revive and transform into a dynamic and modern sector. Projections to 2030 aim for higher self-sufficiency rates, improved competitiveness, and greater private sector participation, signaling cautious optimism for the industry’s future transformation.

Keywords: Agricultural policy, food security, livestock, Malaysia, ruminant, transformation.

INTRODUCTION

The livestock industry is a vital component of Malaysia's economy, serving as a primary source of protein for the population and contributing significantly to the nation's gross domestic product (GDP). This industry contributes around RM19-21 billion (US$4.41-4.88 billion) to the GDP annually, or about 15-18% of the agriculture sector's GDP. In general, the Malaysian livestock industry is categorized into two sub-sectors: the ruminant sub-sector (cattle, buffalo, goats, and sheep) and the non-ruminant sub-sector (poultry and swine). The non-ruminant sector is well-developed, technology-driven, and has achieved economies of scale through commercial operations. The ruminant sub-sector, on the other hand, operates on a semi-commercial and traditional basis.

In Malaysia, the development of the livestock industry is spearheaded by various government policies, including the Five-Year Development Plans and a series of national agricultural and agro-food policies. Specifically, for the agricultural sector, the government has formulated five key policies: the National Agricultural Policy 1 (1984-1991), the National Agricultural Policy 2 (1992-1997), the National Agricultural Policy 3 (1997-2010), the National Agro-food Policy (2011-2020), and the National Agro-food Policy 2.0 (2021-2030).

Under these policies, the government has set numerous strategies and initiatives to transform the livestock sector into a dynamic and modern industry. However, despite these long-standing policy efforts and over 60 years of independence, Malaysia still struggles to secure its domestic supply of red meat and milk, remaining heavily dependent on imports. While there is an excess supply of poultry and eggs, the nation faces significant challenges in sustaining its supply of red meat and dairy products.

This disparity is evident in production figures. In 2023, the non-ruminant sector achieved self-sufficiency levels exceeding 105% for poultry and 113% for eggs. In stark contrast, domestic red meat production was critically low. For instance, Malaysia produced only 38,667.2 tons of beef (15.9% of its needs) and 3,800 tons of mutton (8.2% of its needs). Consequently, Malaysia remains a net importer of ruminant products. The country imported over 205,246 tons of beef in 2023—equivalent to more than 85% of local requirements, reflecting a dependency that has grown continuously since the 1980s. Similarly, mutton imports have increased substantially from 16,005 tons in 2006 to over 36,852 tons in 2023. The reliance on imported milk is also an unresolved issue, with local production supplying only around 66.8% of demand, necessitating the import of over 34.0 million liters in 2023.

Without significant intervention, the ruminant industry faces a critical situation. Demand for meat and milk is increasing annually due to population growth and changing dietary patterns, as younger, urban populations consume more red meat and dairy products. At the same time, local production growth cannot meet this rising demand. Since organic growth tends to be slow, the industry requires a transformative leapfrog strategy to become dynamic and progressive.

This article discusses the development of Malaysia's livestock industry with a focus on the ruminant sub-sector. It analyzes the impact of government policies—and the themes, strategies, and initiatives they generated—on the industry's advancement. It also highlights the key issues and challenges that continue to hinder the development of the ruminant sector in Malaysia.

TRANSFORMATION OF THE LIVESTOCK INDUSTRY

As one of Malaysia's oldest industries, the livestock sector has long served as a source of income through the trade of its products and as a key contributor to agricultural production. Historically, farmers utilized cattle and buffalo not only for plowing agricultural land but also as a primary mode of transportation. It has evolved from a traditional practice into a modern industry driven by innovation and technology. The transformation of Malaysia's livestock industry can be charted across five distinct eras.

Pre-independence era

Before Malaysia’s independence in 1957, the livestock industry was largely traditional, small-scale, and subsistence-based. Livestock rearing was primarily for household consumption and local trade, with animals such as buffaloes and cattle also serving as crucial draught power for plowing and transportation.  Common animals in some communities included chickens, ducks, goats, cattle, buffalo, and pigs. Animal husbandry was also shaped by cultural practices, with Malays predominantly associated with poultry and buffalo, the Chinese with swine and fowl, and Indians with cattle and goats, particularly for dairy production and religious observances. Organized commercial production was nonexistent; instead, farmers reared animals in open village systems, lacking structured breeding, feeding, or disease control programs. During the colonial era, the British colonial administration extended certain veterinary services to control diseases such as rinderpest and foot-and-mouth disease. Consequently, the industry was characterized by low productivity and poor quality, lacking any commercial orientation or comprehensive government planning.

Post-independence era

During the 1960s and 1970s, the Malaysian livestock industry began a slow transition from traditional subsistence farming to more structured, semi-commercial systems. This shift was driven by the government's recognition of livestock's importance for food security and rural income. To support this transformation, the government established new agencies and programs. For instance, the Department of Veterinary Services controlled diseases and provided technical support to farmers.

The strategies for the industry's development were formally incorporated into the Malaysian Development Plans. Under the First and Second Malaysia Development Plans (1966–1975), the government aimed to increase local meat and milk production and reduce dependence on imports. It also began establishing crucial support systems, such as breeding centers, dairy demonstration farms, animal quarantine stations, and abattoirs.

This era marked a transitional phase. While the government laid the foundation for the industry's development and early commercialization began, particularly in poultry and dairy, the sector remained largely underdeveloped, with most production still unable to meet domestic demand.

Pre-modernization era

The modernization era of the 1970s and 1980s was driven by the New Economic Policy (NEP), introduced by the second Prime Minister, Tun Abdul Razak. The NEP's primary focus was to eradicate poverty and restructure society by uplifting rural communities.

The government established key rural development agencies like the Federal Land Development Authority (FELDA), the Federal Land Consolidation and Rehabilitation Authority (FELCRA), and the Rubber Industry Smallholders Development Authority (RISDA). These agencies focused on uplifting smallholder communities through agricultural and livestock programs, including the introduction of mixed farming, such as integrating cattle with oil palm cultivation.

Research and Development (R&D) was also intensified through the establishment of the Malaysian Agricultural Research and Development Institute (MARDI) and the Livestock Training Institute. These institutions focused on genetic improvement, animal nutrition, and the promotion of sustainable livestock production systems.

The government also established a specialized agency for ruminants, the Lembaga Kemajuan Ternak Negara, commonly known as the National Livestock Development Board (MAJU TERNAK). Established in 1980, its core mandate was to promote and manage the entire ruminant supply chain, from breeding to marketing. It was set up to oversee integrated development, work with state agencies, and provide technical support. However, the agency was closed in 1983 after it failed to achieve its objectives.

During this period, the Ministry of Agriculture introduced its first National Agricultural Policy (NAP 1), covering 1984 to 1991. The focus of NAP 1 was to increase the productivity and efficiency of agricultural production. Its objectives included: 1) achieving self-sufficiency in key food commodities, including livestock; 2) improving rural income and reducing poverty; and 3) promoting efficient land use.

For the livestock industry specifically, the emphasis was on increasing local production to reduce imports, supporting integrated farming, and encouraging private sector investment. To achieve these goals, the government reallocated land for livestock, strengthened the Department of Veterinary Services (DVS), and enhanced R&D at MARDI, including the importation of high-quality breeding stock such as Brahman and Friesian cattle.

However, by the end of NAP 1, the livestock industry's overall performance showed little improvement. According to a report by Husfarm.com, beef and buffalo production dropped from 16,870 tons in 1984 to 14,311 tons in 1991. During the same period, the quantity of imported beef, mutton, and milk increased annually. According to IndexMundi, meat imports surged from over 10,000 tons to more than 95,000 tons. This trend indicates that the policies and strategies of the era failed to achieve their intended outcomes.

Commercialization and industry growth era

During the 1990s and 2000s, Malaysia's livestock industry grew into the backbone of the agricultural sector, shifting towards greater commercialization. In this period, new programs were introduced to modernize production, emphasizing public-private collaboration and technology transfer from government research institutions. Key strategies included the feedlot system—an intensive method for rapidly fattening cattle with high-energy feed to improve meat quality — and market planning.

The government also encouraged private-sector involvement in the livestock industry. Despite the establishment of many commercial farms, the domestic meat supply, while stable, remained limited.

When the NAP 1 period ended in 1991, the government established the National Agricultural Policy 2 (NAP 2) for the period between 1992 and 1997. The policy's theme was 'agriculture as a business,' promoting a market-oriented and commercial approach. It emphasized the transition from subsistence to commercial production, enhanced private sector involvement, and aimed to improve productivity. Key strategies included providing incentives for private farms, encouraging contract farming, and modernizing abattoirs.

The implementation of NAP 2 contributed to economic growth in general; the agriculture sector grew by around 3.2% per annum from 1985 to 1995. However, the country's food imports also continuously increased, from RM3.5 billion (US$840 million) in 1985 to RM10.0 billion (US$2.4 billion) in 1997. This upward trend suggests that the transformation strategies under NAP 2 were less effective than intended in reducing import dependence. The industry's performance was considered modest, though some technologies, such as artificial insemination (AI) and improved breeds, were introduced, and support systems, such as veterinary labs, were upgraded.

The transformation of the livestock industry continued with the National Agricultural Policy 3 (NAP 3), which covered the period from 1998 to 2010. This policy was a continuation of NAP 2 but was adjusted in response to the 1997-1998 Asian Financial Crisis, which increased food import costs. Thus, the focus of NAP 3 was on ensuring the sustainability of the agro-food industry. For livestock, the government pushed for greater technology adoption, expanded R&D, and the development of designated livestock valleys and clusters.

The government expected NAP 3 to enhance the livestock industry, and the results were more positive. Beef production successfully increased from 31,885 tons in 2006 to 46,510 tons in 2010, improving the self-sufficiency ratio (SSR) from 22.0% to 30.6% while imports were reduced. Mutton production also showed positive results, increasing significantly from 2,396 tons to 16,000 tons, with the SSR improving from 9.1% to 9.8%. However, due to a significant rise in consumption, mutton imports also increased. In general, the transformation programs during this era resulted in tangible improvements of the livestock industry.

Modernization and the sustainability era

In 2011, the Ministry of Agriculture and Agro-food Industry launched the first National Agri-Food Policy (NAFP 1.0) for the 2011-2020 period, with the theme of enhancing food security and increasing agro-food income. The policy's general objectives were to ensure an adequate and safe food supply, improve the industry's competitiveness, strengthen farmers' incomes, reduce dependence on imports, promote sustainable practices, and encourage private-sector and youth participation.

Recognizing ruminants as a strategic commodity, the NAFP 1.0 set three special objectives to enhance the livestock industry: 1) increase the self-sufficiency ratio (SSR) for beef, mutton, and milk; 2) strengthen the industry's competitiveness and sustainability; and 3) reduce dependency on imports, particularly for ruminant meat and milk.

The strategies that are established to achieve those objectives are as follows:

In general, the implementation of NAFP1.0 has yielded mixed results. Some industries, such as poultry and eggs, have achieved a self-sufficiency ratio of above 100%. The dairy industry has grown modestly, while the beef and mutton industries still lag. Beef production dropped from 48,845.0 tons in 2011 to 41,378.0 tons in 2020. The supply of beef decreased from 29.8% to 21.3%, and imports surged from 118,865.2 tons to 153,290.6 tons. The same performance occurred in the mutton industry. Despite production increasing from 3,091.5 tons to 3,916.8 tons, the SSR reduced from 16.6% to 9.4% due to higher demand. As a result, Malaysia imported more than 37,785.9 tons of mutton, an increase from 18,061.8 tons.

The transformation of the ruminant industry continued with the establishment of the National Agri-Food Policy 2.0, covering the period from 2021 to 2030. The main objectives of this policy, specifically for the ruminant industry, are: i) to develop a resilient, sustainable, and technology-based livestock sector; ii) to increase SSR and reduce import bills; iii) to promote climate-smart and high-value livestock production; iv) to strengthen biosecurity and disease management; and v) to enhance economic returns for farmers and ensure rural inclusivity.

This policy was formulated with the aspiration that the livestock industry must be transformed through the application of innovation and technologies, as stated in the strategies, as follows:

• Modernize production systems

The policy aspires to adopt advanced technologies such as the Internet of Things (IoT), embryo transfer, genetic improvement, and automation in livestock production. These innovations could improve production efficiency, enhance productivity, optimize resource use, improve animal health management, and promote sustainable operations.

• Transform waste into animal feed

Malaysia possesses abundant natural resources that can be utilized as natural animal feed. For instance, over five million hectares of oil palm are cultivated in Malaysia. The oil palm fronds, which are rich in fiber, can serve as animal feed. Reducing reliance on imported feed is crucial for ensuring cost stability and long-term sustainability. Developing local feed resources, including enhanced pasture systems and alternative feed ingredients, can decrease input costs and bolster national food security.

• Introduce cluster farming and integrated livestock zones

Cluster farming promotes economies of scale and facilitates knowledge exchange among agricultural practitioners. Simultaneously, integrated zones improve infrastructure, veterinary services, and market access. This strategic approach enables smallholders to optimize their resources and enhance their competitiveness within the industry.

• Promote high-value and niche livestock industries

Diversification into niche sectors, such as dairy buffalo, deer, rabbit, and quail farming, presents novel economic prospects. These high-value segments address specific consumer demands and offer significant potential for premium market expansion. Additionally, Malaysian breeders are actively promoting "Sado Cattle," a large-sized cattle breed characterized by its muscular, heavy build, with weights typically ranging from 400 to 600 kg, and occasionally exceeding 1,000 kg.

• Improve food safety and traceability systems

Enhanced food safety regulations and robust traceability mechanisms are crucial for building consumer confidence and ensuring compliance with international market standards. These measures are essential for expanding export opportunities and protecting public health.

• Increase private investment and global market access

Encouraging private sector engagement through investment incentives and supportive trade policies can significantly expedite innovation and enhance competitiveness. Broadening global market access further propels growth and positions the livestock sector as a pivotal contributor to national economic development.

The National Agrofood Policy 2.0 (NAFP2.0) represents a transformative initiative poised to revolutionize the livestock sub-sector, particularly the ruminant industry. Its development stems from a thorough evaluation of the shortcomings identified in NAFP1.0. A comparative analysis of NAFP1.0 and NAFP2.0 is presented in Table 1.

Table 1. Comparison between NAFP1.0 and NAFP2.0

Sources: NAFP (1.0), 2011 and NAFP (2.0), 2021

Table 1 demonstrates that NAP1.0 laid a strong foundation for livestock development by prioritizing increased production and reduced imports. In contrast, NAP2.0 builds on this foundation by integrating advanced technology, sustainability, and market diversification, thereby adopting a holistic, system-oriented approach that emphasizes resilience, value creation, and global competitiveness.

Current status of the ruminant industry

The livestock industry plays a crucial role in the country's agricultural development, demonstrating consistent growth in 2023. The sector's value added for the fourth quarter of 2023 increased by 3.5% to RM4.0 billion (US$0.93 billion), contributing 1.0% to the national economy. Total trade in livestock and livestock products expanded by 22.0% to RM15.84 billion (US$2.87 billion) in 2022, compared to RM12.35 billion (US$2.87 billion) in 2021. This growth was primarily driven by imports, valued at RM12.37 billion (US$2.88 billion), exceeding exports of RM3.48 billion (US$0.81 billion). Despite this, the trade deficit in the ruminant industry (meat and milk) has improved over the past two years. Import values were RM10.10 billion (US$2.35 billion) in 2022 and RM10.87 billion (US$2.53 billion) in 2023, while export values were RM2.11 billion (US$0.49 billion) in 2022 and RM2.35 billion (US$0.55 billion) in 2023. Consequently, the balance of trade improved from -RM8.76 billion (-US$2.04 billion) in 2022 to -RM8.52 billion (-US$1.98 billion) in 2023.

Despite numerous policies, strategies, action plans, programs, and initiatives, the production of ruminants and ruminant products in general continues to underperform. Beef production is declining annually and is insufficient to meet local demand, leading to a consistent increase in beef imports (Table 2).

Table 2. Beef production, self-sufficiency ratio (SSR), import, consumption, and per capita consumption, 2013-2023

Source: Livestock statistics, DVS (2013-2024)

Table 2 shows a significant increase in beef consumption, rising from 201,533 tons in 2013 to over 243,914 tons in 2023, representing a 21.0% increase over a decade. This heightened demand is attributable to an elevated per capita consumption, which grew from 5.9 kg/year to 6.7 kg/year, alongside population growth. Conversely, domestic beef production declined from 51,715 tons to 38,667 tons during the same period, a reduction exceeding 38.7%. This decrease in output has led to a substantial drop in the self-sufficiency ratio (SSR) for beef, from 27.8% in 2013 to 15.9% in 2023. These figures suggest that the strategies and action plans implemented over the past decade under the National Agro-food Policy have not succeeded in transforming the beef industry. As a direct consequence, Malaysia's beef imports reached 205,246.90 tons in 2023, marking an increase of nearly 49% over the same period.

The performance of the mutton industry is similarly discouraging. As depicted in Table 3, the mutton sector is clearly struggling. Table 3 indicates that, on average, Malaysian consumers consumed approximately 41,220 tons of mutton in 2023. Given that domestic production is insufficient to meet this demand, Malaysia imported more than 36,850 tons, equivalent to RM772.4 million (US$179.53 million), fulfilling approximately 89.5% of the total requirement. Mutton production in 2023 stood at only 4,368.40 tons, representing a reduction of around 6.8% over the preceding ten years.

Table 3. Mutton production, self-sufficiency ratio (SSR), import, consumption, and per capita consumption, 2013-2023

Source: Livestock Statistics, DVS (2013-2023)

Conversely, the dairy industry has demonstrated improved performance over the past decade. Milk production increased from 28.8 million liters in 2013 to over 40.1 million liters in 2023. Nevertheless, this heightened production has not contributed to the self-sufficiency ratio (SSR) for milk, as illustrated in Table 4. The SSR has declined from 76.6% to 66.8%, primarily attributable to increased local consumer demand for fresh milk. Consumption has almost doubled, rising from 37.60 million liters to more than 74.10 million liters, reflecting growing public awareness regarding health and a corresponding rise in milk consumption.

Table 4. Production, consumption, SSR, import, and consumption of milk, 2013-2023

Source: Livestock Statistics, DVS (2013-2023)

The National Agrofood Policy (NAFP2.0), formulated for the period 2021-2030, builds on the foundational NAFP1.0, which broadly aimed to safeguard national food security through the transformation of the national food system. NAFP 2.0 establishes a robust framework for transforming Malaysia’s ruminant livestock industry, supported by strategic programs and clearly defined targets. The implementation of the NAFP initiates a period of long-term, inclusive growth, benefiting both the national economy and the livelihoods of breeders across various scales.

Overall, the NAFP has demonstrably contributed to the transformation of the ruminant industry. Enhanced disease prevention and the adoption of good husbandry practices have led to higher survival rates, improved stock quality, and ultimately increased farm productivity. The NAFP has also fostered greater inclusivity in value chain participation by integrating ruminant producers into the broader agri-food value chain. These initiatives have enabled numerous breeders, particularly smallholders, to access value-added opportunities and markets that were previously inaccessible.

The ruminant industry is projected to grow from RM17.15 (US$3.99) billion in 2021 to RM28.98 (US$6.74) billion by 2030, reflecting an anticipated annual growth rate of 6%. Its contribution to the agri-food sector’s GDP is expected to increase, reaching between 32.3% and 36.4% by 2030.

CHALLENGES IN TRANSFORMING THE RUMINANT INDUSTRY

Despite the Malaysian government's consistent efforts in formulating comprehensive agricultural policies that articulate clear directions, objectives, strategies, and action plans, the ruminant industry in Malaysia continues to experience sluggish progress after more than six decades of development. One of the most pressing challenges is the sector’s persistent dependency on imported feed ingredients, particularly corn and soybean meal, which escalates production costs and exposes producers to global price fluctuations. Ironically, while the domestic oil palm industry produces over one million tons of palm kernel cake annually, a substantial share is exported to markets such as Australia and New Zealand, where higher prices can be secured, leaving local breeders unable to access affordable feed. This situation is compounded by the underperformance of numerous public–private feedlot projects, many of which faltered due to weak management structures, a lack of economies of scale, and an overreliance on imported feed, which is further burdened by exchange rate volatility. Moreover, technological adoption within the industry remains limited, as smallholder ruminant farms exhibit slow modernization and minimal uptake of smart farming practices, mechanization, and digital tools. Breeding programs have also struggled to yield sustained improvements, with local breeds such as Kedah Kelantan cattle remaining small in size and suboptimal in productivity compared to improved genetic lines available globally. Finally, the high capital and operational costs required for infrastructure, machinery, and veterinary services deter smallholders, while the long gestation period of returns in ruminant production further weakens investment incentives. Collectively, these structural deficiencies underscore the urgent need for transformative strategies that can address systemic inefficiencies and reposition the ruminant industry as a resilient and competitive component of Malaysia’s agri-food sector.

FUTURE PROSPECTS OF THE RUMINANT INDUSTRY

The country's ruminant industry is targeted for rapid growth, aligning with the government's objective of ensuring a sustainable supply of meat and milk. To achieve this, the government has established self-sufficiency rate (SSR) targets of 50% for beef, 30% for mutton, and 100% for milk by 2030. To meet these targets, the government aims to increase domestic production. Projections for ruminant meat production between 2023 and 2040 reflect the government's efforts to progressively improve the SSR for beef/buffalo and goat/sheep, in line with rising domestic demand. With the SSR target for beef set at 50% by 2030, the production volume is projected to increase nearly fourfold, from 38,667 tons to 140,283 tons. Achieving this target will necessitate a substantial expansion of the national livestock population, from approximately 293,000 heads to over 1.06 million heads by 2030. The number of animals is projected to further grow to 1.26 million heads by 2040.

In tandem with the projected increase in beef and buffalo production and retail market prices, the market value of this commodity is anticipated to reach RM6.93 billion (US$1.61 billion) by 2030 and RM10.92 billion (US$2.54 billion) by 2040. This growth will necessitate substantial investments in infrastructure, advanced farming technologies, and comprehensive policy support to fortify the domestic meat value chain.

In 2023, the total production of mutton reached 4,368 tons, derived from approximately 242,689 head of livestock. This volume was sufficient to meet only about 10.6% of the self-sufficiency ratio (SSR) for mutton, indicating a substantial reliance on imports to meet domestic demand. Projections extending to 2030 forecast an ambitious increase in the SSR target to 30.0%, nearly tripling the current benchmark. To achieve this objective, production is expected to surge to 15,986 tons, necessitating an increase in the total livestock population to 888,141 heads. By 2040, assuming the SSR target remains at 30.0%, production is forecast to further escalate to 21,158 tons, with an estimated total livestock count reaching approximately 1.17 million head.

The market value of meat is also influenced by price fluctuations, which are anticipated to rise in tandem with increasing inflation rates and production cost pressures. The price of mutton is projected to grow to RM75.42/kg (US$17.53/kg) in 2030 and RM108.63/kg (US$25.62/kg) in 2040, absent governmental intervention. The value of the local mutton market is forecasted to expand to RM1.21 billion (US$0.28 billion) in 2030 and RM2.30 billion (US$0.53 billion) in 2040. Although the SSR target for this sector is lower than that for cattle/buffalo, the proposed increase remains significant. The goat/sheep sector is currently considered a supporting subsector; however, it possesses considerable potential, particularly given the growing demand for low-cholesterol protein sources and increasing consumer interest in premium and organic products.

To realize this projection, emphasis must be placed on enhancing the productivity of indigenous breeds. Promoting the utilization of integrated systems and intensifying continuous technical training for small and medium-sized farmers is imperative. Long-term strategic planning should also aim to establish breeding centers, create satellite farms, and ensure a stable market for local goat meat products. Collectively, this projection underscores the nation's commitment to enhancing self-sufficiency in the ruminant livestock subsector. Nonetheless, the established targets are formidable and necessitate a comprehensive approach that fosters collaboration among governmental entities, industry stakeholders, smallholder farmers, and researchers. This partnership should concentrate on critical facets of productivity, breeding, disease management, animal nutrition, and resilience to climate change.

Meanwhile, the nation's dairy sector exhibits optimistic growth ambitions, with a self-sufficiency ratio (SSR) target poised to increase from 66.8% in 2023 to a commendable 100% by 2030, and to sustain this level until 2040. This objective aligns seamlessly with the country's dedication to achieving complete self-reliance in fresh milk production, thereby reducing reliance on imports. In 2023, domestic milk production reached an impressive 40.1 million liters. To achieve 100% SSR by 2030, production must be significantly increased to 106.87 million liters, representing more than a twofold increase. By 2040, production is anticipated to reach 153.69 million liters to accommodate the burgeoning domestic demand spurred by population growth and heightened awareness of healthy nutrition. This escalation in production necessitates augmenting dairy farm capacity, enhancing animal productivity through the selection of superior breeds, adopting cutting-edge rearing technologies, and streamlining processing systems. Comprehensive governmental policies must also bolster these initiatives. Collectively, this forecast presents an optimistic outlook for the nation's dairy industry and creates opportunities for private investment, as well as for the proactive engagement of the local farming community, to achieve the 100% self-sufficiency target by 2030.

Malaysia’s livestock industry is evolving not only through digital tools and automation but also through novel sustainable practices. Under the Smart Farming agenda in NAP 2.0, farmers are increasingly adopting IoT sensors for animal tracking and automated feeders to optimize time and improve animal health. Concurrently, researchers and policymakers are advocating for greener solutions, such as converting palm oil by-products, such as palm kernel cake and oil palm fronds, into animal feed or eco-friendly products.

Numerous emerging farming technologies, particularly in nanotechnology—are being investigated to enhance nutrient absorption in animals and mitigate the reliance on antibiotics. This supports Malaysia’s broader objectives of establishing a more sustainable farming system and ensuring national food security. However, adopting these new tools presents significant challenges for many farmers. The costs are substantial, many smallholders lack familiarity with the technology, and clear regulations or guidelines are still nascent. While large farms have initiated trials with smart sensors, mobile applications, and improved animal feeds, smaller farmers frequently encounter difficulties due to the considerable investment required and limited digital literacy. This disparity creates a gap where well-resourced farms advance while small farmers are marginalized. To counteract this, policies must transcend mere encouragement of innovation; they must also provide financial assistance, extension services, and practical training to ensure equitable access for all farmers. Another crucial step is to integrate these technologies with Malaysia’s halal certification systems, given the increasing global buyer demand for robust proof of product safety and traceability. Ultimately, while digitalization and green nanotechnology hold immense promise for the livestock industry, their true impact will only be realized if policies bridge the gap between research laboratories and practical farm applications, ensuring universal access. Embedding sustainability into the long-term growth of the livestock sector is also paramount for safeguarding Malaysia’s food security and maintaining its competitiveness in global markets.

CONCLUSION

The transformation of the livestock industry is not an instantaneous event but an ongoing endeavor that requires persistent monitoring and opportunities for assessment and improvement based on public feedback. This iterative process facilitates the adaptation of policies to align with actual needs and address evolving challenges. The implementation of such a policy requires unwavering commitment from all stakeholders, including the government, the private sector, and individual farmers.

The advancement of the livestock industry is currently guided by the National Agrofood Policy 2.0 (NAP 2.0). Under this framework, tangible progress in harnessing technology within Malaysia’s livestock sector is evident. NAP 2.0 has led to significant advancements in economic output, trade expansion, and employment growth within the livestock subsector. However, pronounced production imbalances and insufficient self-sufficiency levels, particularly in beef and milk, underscore that the ambitious targets of NAP 2.0 remain far from fully realized.

Despite the current performance and the issues and challenges confronting this industry, the Malaysian government remains optimistic that the livestock industry, especially the ruminant sector, will contribute significantly to the general advancement of Malaysia’s economy and, in particular, to the strengthening of the agricultural industry.

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