KUALA LUMPUR, Jan 16 — This year, the Agriculture and Food Security Ministry (KPKM) is planning a reverse investment approach for government-linked companies (GLCs) and government-linked investment companies (GLICs) to protect Malaysia’s food supply.
In his 2026 address at Wisma Tani in Putrajaya today, Agriculture and Food Security Minister Mohamad Sabu highlighted that in 2026, food has become a geopolitical instrument amid the rise of food nationalism around the world, as exports are halted without warning.
“Based on current realities, the government can no longer act in a reactive and short-term manner; instead, it must implement strategic mitigation measures,” Mohamad said in his speech.
“Accordingly, in 2026, the Ministry will lead the adoption of a ‘reverse investment’ approach to protect and secure the supply of the nation’s critical food commodities.”
He explained that the reverse investment approach will focus on four main industries: ruminants (cattle), rice, milk, as well as seeds and breeding stock that have been identified as critical components of the national food supply chain and must not be exposed to disruptions in global supply.
“Accordingly, the Ministry invites GLCs and GLICs to participate strategically in this reverse investment initiative. The involvement of these entities is crucial to building national ownership within critical supply chains, strengthening the nation’s food sovereignty, and ensuring that the resilience of Malaysia’s food system can be sustained over the long term.”
The agriculture and food security minister stressed that geopolitical developments have been increasingly “suspicious” of late.
“I wish to emphasise that reverse investment is not intended to replace local farmers; rather, it functions as a strategic buffer to ensure supply chain stability in the event of unforeseen external shocks. Each investment will be implemented in phases, in a prudent manner, and guided by national interests,” said Mohamad.
“National interests and the interests of farmers in Malaysia will be prioritised above all else before any reverse investment is undertaken, if such investments are found to disrupt local farmers or domestic operators.”
In 2023, Mohamad reportedly told Dewan Negara that reverse investment involved investing in agrofood or agricultural sectors abroad and bringing the commodity or food produce back into Malaysia that would be considered as part of domestic production.
Three years ago, the agriculture and food security minister touted reverse investment by private companies. Now, in 2026, Mohamad is exhorting GLCs and GLICs to lead reverse investments.
“In addition to the reverse investment approach, the Ministry is also placing emphasis on strengthening domestic investment as a key complement in enhancing the capacity and competitiveness of the national agrofood sector,” Mohamad said today.
“In this context, focus will be given to five strategic priority areas, namely the development of the aquaculture industry, the utilisation of Geographic Information Systems (GIS) at the production level, grain corn production, the expansion of pineapple cultivation, and the development of domestic seed and breeding stock production.”
Despite touting reverse investments in cattle, Mohamad said 2026 will also focus on the local ruminant industry to ensure supply of beef and buffalo meat as Malaysia’s main source of protein.
This year, KPKM targets increasing beef and buffalo meat production to 50,000 metric tonnes and a self-sufficiency ratio (SSR) of 18 per cent.
“At the same time, focus is also being given to improving the quality of local breeds and livestock breeding, increasing birth rates, and strengthening animal health controls as well as measures to curb livestock smuggling in border areas,” said Mohamad.
“This approach is important to protect the domestic industry from disease risks, the entry of illegal livestock, and supply disruptions that could undermine market stability.
Mohamad said Malaysia’s agrofood trade deficit shrank to RM28.83 billion last year (January to October) from RM33.14 billion in the same period the previous year. From January to October 2025, the country’s agrofood trade totalled RM126.31 billion, comprising RM77.57 billion in imports and RM48.74 billion in exports.
“This achievement was supported by stronger export performance, especially fish and vegetables, as well as durian, pineapple, coconut, and coffee and cocoa products.”
Mohamad warned that Malaysia’s agricultural and agrofood sector faces more complex challenges this year, including climate change and extreme weather patterns, as well as domestic structural challenges like the rising cost of agricultural inputs, human resource shortages, the need for new skills, and varying rates of technological adaptation.
