Assessing Agricultural Resilience in Malaysia: The Impact of R&D Investments on Sector Stability

Thurai Murugan Nathan, Muhammad Baqir Abdullah, Kalai Vani Kalimuthu and Nor Hidayah Harun

Economia agro-alimentare, 2025, vol. 2025/2, issue 2, 35-70

Abstract: The agricultural sector is pivotal in Malaysia?s economic development, primarily providing food, feed, and raw materials for industries while contributing to the country?s GDP and absorbing labour. Despite its significance, the sector?s resilience during economic shocks, such as financial crises, economic setbacks, and pandemics, requires further examination. This study addresses the issue of measuring the resilience of Malaysia?s agricultural sector with an enhanced focus on the impact of research and development (R&D) funding allocation and investments, which is often overlooked in resilience studies.It aims to quantify the resilience of Malaysia?s agricultural sector and analyse trends over time, thereby contributing to a deeper understanding of the sector?s stability and the role of R&D in fostering resilience. Secondary data from 1996 to 2023 was collected from various sources, including the World Bank, the Department of Statistics Malaysia, the Ministry of Agriculture and Food Industries Malaysia, Bank Negara Malaysia, and the Malaysian Investment Development Authority. Principal component analysis (PCA) was utilised to construct the resilience index, while trend analysis examined the evolution of this index over the study period. Preliminary results indicate that the resilience of Malaysia?s agricultural sector fluctuates over time, with a positive correlation between increased R&D investments and higher resilience levels. Strategic R&D investments are crucial for enhancing agricultural resilience. This research provides a comprehensive framework for assessing the resilience of the agricultural sector, offering policymakers and stakeholders valuable insights. The methodology and findings can also be applied to other countries, making a contribution to the literature on agricultural resilience.

Keywords: Agricultural sector resilience; Malaysia; Principal component analysis; R&D (search for similar items in EconPapers)
Date: 2025
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