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Poors. 2023; 11: 15228. PMCID: PMC10158762
Published online 2023 May 1. doi: 10.7717ipeer).15228 PMID: 37151297
Areview on post-COVID-19 impacts and opportunities of agri-food supply chain in
Malaysia
‘Say Peng Tan,'? Lee Chuen Ng. Novel Lyndon? Zaki Aman, Parthiban Kannan,” Khairuman Hashim,"
Han Meng Teo,? and Muhamad Syazlie Che Ibrahim?
Academic Editor: Ravinder Kumar
Abstract
Background
Malaysia is strongly supported by the agriculture sector as the backbone to drive the economy.
However, COVID-19 has significantly affected agriculture across the production, supply, and mar-
keting chains. It also disturbs the balance of food supply and demand in Malaysia. COVID-19 was
an unexpected pandemic that resulted in shock and panic and caused a huge global impact.
However, the impacts of this pandemic on the agriculture sector in Malaysia, particularly in the
production and supply chains, are still unclear and scarce. This review offers insights into the chal-
lenges, particularly in sustaining agri-food production and supply chains. It also highlights the op-
portunity and relevant measures towards sustainability in agriculture to avoid agri-food disasters
in the future.
Methods
This study was carried out through a desk review of the secondary source of information covering
the impact of COVID-19 in Malaysia particularly in the agri-food aspect, and a wide range of strate-
gies and initiatives as the effective measures to overcome the crisis of this pandemic, Online desk
research of the government published data and customer desk research were utilized
this study. Search engines such as Google Scholar and the statistical data from the o
-ntps:wwwneb) nmin. goviomctatcles/PMC10158762/~text=The pandemic had rellected the spike In ag-ood prices sms.sn, Pu -Areview on post-COVID-18 impacts and opportunites of agrood supply cain in Malaysia - PMC
including the Department of Statistics Malaysia (DOSM) and the Food and Fertilizer Technology
Center for the Asian and Pacific Region (FFTC-AP), were utilized. Keywords such as impact of
COVID-19, pandemic, and agri-food supply chain were used to conduct the searches. The articles
identified to be related to the study's objective were then downloaded and included in the study.
Descriptive methods were used as the primary analysis technique following the descriptive analy-
sis and visual data analysis in performing the sources obtained.
Results
‘This devastating impact damages the lives by causing 4.3 million confirmed infections and more
than 290,000 deaths. This disease presents an unprecedented challenge to the public health. The
lockdown restriction under the movement control order (MCO), for more than of the world’s pop-
ulation in the year 2020 to control the virus from spreading, has disrupted most of the economic
sectors. The agriculture industry was seen as one of the essential industries and allowed to oper-
ate under strict standard operating procedures (SOP). Working under strict regulations came with
a huge price paid for almost all industries.
Conclusion
‘This pandemic has affected the national agri-food availability and accessibility in Malaysia. This
outbreak created a reflection of opportunity for sharing a more flexible approaches in handling
emergencies on agricultural food production and supply chains. Therefore, the government
should be ready with the roadmap and enforce the measures to control the pandemic without dis-
rupting the agri-food supply chain in the near future,
Keywords: Post COVID-19, Agri-food, Pandemic, Food supply chain, Livelihood
Introduction
The resilience in crisis of agriculture industry during the pandemic of COVID-19 is crucial to mini-
mize the severe consequences for other industries to overcome the short, medium and long-term
impacts. The impact of COVID-19 forced the decreasing in the planted area of some important
commodities and cash crops such as palm oil, cocoa, paddy, coconut and mustard between 2019-
2021 (Table 1). However, the impacts of this pandemic on the agriculture sector in Malaysia, par-
ticularly in the production and supply chains are still unclear and scarce. This study comprehends
the impacts of COVID-19 on the agriculture sector in Malaysia especially in the agri-food produc-
tion and supply chains, The study also summarizes the effective alternate strategies that have been
implemented by the government of Malaysia and the transformation by the agri-food industry to
sustain the agri-food supply chain, This review also highlights the opportunity and relevant mea-
sures towards sustainability in agricultural production system to avoid agri-food c
ture for the next coming pandemic.
s in the fu-
-ntps:wwwnebi nmin. goviomctatcles/PMC10158762/~text=The pandemic had rellected the spike In agr-ood prices 21281723, 3:11 PM ‘Areviow on post-COVID-19 impacts and opportunites of ag-ood supply chain in Malaysia - PMC
Table 1
2018-2021,
Planted area for main crops in Malays
Impact of COVID-19 pandemic resulted in decreasing of crop planted area between year 2020-2021
Crops 2018 2019 2020 2021
Oil palm 5,849.3 5,902 5,065.3 5,737.7
Cocoa 156 59-5760
Paddy 700.0 672.1 6449 647.9
Cocomit 834 865 849 826
Mustard 94 = 112 109 ILA
Note: ('000 hectares)
Source: Department of Statistics Malaysia (Department of Statistics Malaysia (DOSM),2021a)
COVID-19 caused by the SARS-CoV-2 virus that disturbs the respiratory system through difficulty
in breathing, fever and cough (Christian, 2020) was firstly reported in December 2019, as a new
acute respiratory infections in Wuhan City, Hubei Province (Elengoe, 2020). COVID-19 was found
to cause a high mortality rate among adults with cancer (Rouger-Gaudichon et al, 2020) and the
elderly (Henkens et al, 2021), Death was inevitable for some patients who were infected with low
immune systems (Begum et al, 2021). Globally, the COVID-19 pandemic had caused more than 4.3
million confirmed infections and more than 290,000 deaths (Nicola et al, 2020). As the number of
infected and dead increased, the fear of econom
crisis and recession also increased. This virus
was reported to be transmitted through direct contact to the respiratory droplets of the infected
COVID-19 patient or indirect contact with virus-contaminated surfaces (Wu, Chen & Chan, 2020)
Airborne transmission of this virus is possible with the presence of microbes within droplet nuclei
that remain in the air (World Health Organization (WHO), 2020), The first transmission of COVID-
19 through food was first associated to the seafood market in Hunan (one of the cities in Wuhan)
China (Lietal, 2020). On 14 September 2022, the cases of COVID-19 had reached over 609 mil-
lion and over 6.5 million corresponding deaths were reported (ArcGIS, 2022).
‘The rapid spread of COVID-19, followed by a total lockdown, was a huge surprise for the global
economy, including Malaysia. The pandemic of COVID-19 had tremendously affected the society in
the aspects of environmental and economical (Kluge et al, 2020). The enforcement of lockdown
and mobility restriction had worsen the pandemic impacts in the agricultural businesses and food
industries (De Vito & Gémez, 2020; Laing, 2020). Italso led to a weak global economy worldwide
(Goodell, 2020; Jin, 2021), In Malaysia, the government had imposed drastic lockdown measures
with the first movement control order (MCO) on the 18 March 2020 when COVID-19 disease hit a
drastic increasing trend of infected patients. The implementation of MCO was aimed at securing
the economy and society through social distancing, self-isolation, and travel restrictions.
-ntps:wwwnebi nmin. goviomctatcles/PMC10158762/~text=The pandemic had rellected the spike In agr-ood prices 3128sn, Pu -Areview on post-COVID-18 impacts and opportunites of agrood supply cain in Malaysia - PMC
‘The sudden imposition of the MCO wreaked havoc on the food production and supply chains. The
agricultural food supply chain mainly involves a few phases from the farm (producer) to the con-
sumer. The restriction on movement, traffic, and market operation hours during the implementa-
tion of MCO had massively affected the food supply chains, especially for those in the urban areas
(Surendan, 2020), Internationally, this had caused a shock due to the disruption in the supply
Pefia-Lévano, Melo & Burney, 2020; Hayes et al.,2021) and shortage of workers (Villamarin
Rodriguez & Pranay Kumar, 2021). In some other countries, despite having a sufficient food sup-
ply, farmers were hesitant to sell their produce, resulting in a quick rise in the prices of the prod-
ucts (Han, 2021), Meanwhile, the mass grain-production efficiency in Sichuan, Hunan and Hubei,
China were restricted by manpower scarcity (Pu & Zhong, 2020). All COVID-19 affected countries
were forced to take more drastic measures to prevent and curb the infection through the re-evalu-
ation of their agri-food policies in order to secure the food availability and accessibility.
‘The establishment of the strong and dynamic agri-food supply chain with the involvement of
cross-disciplinary experts and policy maker, is crucial to sustain the agricultural production and
supply that had significantly impacted the livelihood of Malaysians. This review serves as the refer-
ence for policy maker, agri-food industry player, agronomist, information technology investor and
cross-disciplinary researcher and expert
Materials and Methods
‘This study was carried out through a desk review of the secondary source of information covering
the impact of COVID-19 in Malaysia particularly in the agri-food aspect, and a wide range of strate-
gies and initiatives as the effective measures to overcome the crisis of this pandemic. Online desk
research of the government published data and customer desk research were utilized to complete
this study. Search engines such as Google Scholar and the statistical data from the official websites,
including the Department of Statistics Malaysia (DOSM) and the Food and Fertilizer Technology
Center for the Asian and Pacific Region (FFTC-AP), were utilized. Keywords such as impact of
COVID-19, pandemic, and agri-food supply were used to conduct the searches. The articles identi-
fied to be related to the study's objective were then downloaded and included in the study.
Descriptive methods were used as the primary analysis technique following the descriptive analy-
sis and visual data analysis in performing the sources obtained.
Scenario of covid-19 in malaysia
‘The SARS-CoV-2 spread rapidly from China to other countries, including Malaysia, before being
classified as a pandemic on 12 March 2020 by the world health organization (WHO). As of early
2020, this outbreak started to spread faster worldwide than expected. The first confirmed COVID-
19 positive case in Malaysia was reported on 25 January 2020, involving three Chinese citizens,
and the first Malaysian COVID-19 patient was reported on 4 February 2020.
Malaysia started imposing the movement control order (MCO) when the collective cases of COVID-
19 had reached close to 800 on 18 March 2020. Throughout the year of 2020 to 2022, The gov-
ernment of Malaysia had established various movement control orders (MCO) to battle against the
COVID-19 pandemic through extending the period of movement control order (MCO) or switching
its: ne rin.nih.govmetariles/PMC10156762/R~text=The pandemic he reflected the spike in agro pices
4251723, 3:11 PM ‘Areviow on post-COVID-19 impacts and opportunites of ag-ood supply chain in Malaysia - PMC
between the conditional movement control (CMCO), the recovery movement control order
(RMCO) and the enhanced movement control order (EMCO) accordingly to the accumulated cases
that were reported from time to time (Fig. 1).
re ‘cnn
igure 1
‘Timeline of MCO implementation in Malaysia during year 2020 to 2022.
Started with the movement control order (MCO) to movement control order by state before entering into the en.
demic phase in June 2021
During the first MCO, the public was thrown into chaos with the increase reported cases, and pub-
lic awareness of the threat posed by COVID-19 exacerbated panic buying of foods and clinical
equipment. For instance, dry or canned food supplies, instant noodles, cooking oil and mineral wa-
ter were thought to be a rational choice of items hoarded during the lockdown (Yau et al,.2020).
Asa result, shortages of food with a long shelf- life were serious during this critical time (Begum
etal, 2021), However, during these phases, even though new rules were introduced to prevent the
spreading of the virus, agricultural activities in the Asia were greatly affected (Azra et al, 2021), in-
cluding Malaysia, These measures were not economically friendly and severely disrupted the sup-
ply and demand chains in the agri-food industry.
Fortunately, most of the areas in Malaysia had entered into the Phase four of the national recovery
plan (NRP) in the last quarter of 2021 with the total vaccination rate of adult citizens reaching
95.5%, This greatly stimulated Malaysia's economy growth with a greater labour force by allowing
the business and social activities to resume with extended duration of operation. The unemploy-
ment rate had declined from 4.8% in 2020 to 4.3% in 2021 (Department of Statistics Malaysia
‘DOSM), 2022a), Healthy employment growth continues to rise, and unemployment is expected to
decline further.
In Malaysia, the primary food production industry was permitted to resume normal operations, in-
cluding agriculture and fisheries. However, the disruption of transportation has significantly af-
fected the agri-food chain. The government imposed various coping strategies to secure the food
supply chain and curb the post-COVID-19 impacts. The Malaysian government introduced eco-
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51251723, 3:11 PM ‘Areviow on post-COVID-19 impacts and opportunites of ag-ood supply chain in Malaysia - PMC
nomic stimulus packages with a short-term recovery plan for relieving individuals’ and organiza-
tions’ burdens (Ministry of Finance of Malaysia, 2020). The financial support from the economic
stimulus packages that targeted directly
agri-food production sectors is tabulated in Table 2.
‘Table 2
Financial support from the economic stimulus packages of the Malaysia government during the COVID-
19 pandemic.
Government initiative ‘Total amount
(mM)
Agriculture and food production grant for small and medium enterprises. 40 million
Food Security Fund for farmers and fishermen to increase domestic agri-food production, 1 billion
Development of infrastructure for food storage, distribution, and crop integration 100 million
programs,
'RM100,000 to RM200,000 for viable farmers’ associations and fishermen’ associations.
‘This is to develop agro-food projects that are capable of generating income within 3 to 6
months.
Electricity bill discounts ~15% discount on electricity bill for the tourism sectoras well ~
as a 2% discount for commercial, industrial, agricultural and household sectors in
Peninsular Malaysia beginning 1 April 2020,
Note:
Source: Ministry of Finance of Malaysia. 2020; Prime Minister Office of Malaysia 2020,
This pandemic had reflected the risk of agri-food security and threatened the social economy in
most of the developing countries that are heavily supported by agricultural or related sectors.
‘Therefore, it was crucial to keep the workers in the food supply chain protected and maintained
especially during the COVID-19 crisis (Food and Agriculture Organization of the United Nati
(EAO) & World Health Organization (WHO), 2020) and to ensure consumers’ assurance in food
safety and security (Food and Agriculture Organization of the United Nations (FAO) & World
Health Organization (WHO), 2020).
Economic impacts on agricultural sector
Agricultural food production
Agriculture sector is the main pillar in supporting the economy of Malaysia, with a contribution of
7.4% to the country’s gross domestic product (GDP) (Department of Statistics Malaysia (DOSM),
2022b). COVID-19 was reported to significantly affect agriculture in two major aspects: food sup-
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nomics of agriculture including crop farming, livestock, agroforestry, fishing and aquaculture, were
not spared from the devastation of COVID-19. The restriction in movement during MCO had af-
fected the hospitality sectors and the leisure industry, such as restaurants and commercial food
services, thus resulted in the disruption of the global supply chain (Shaharudin, 2020). For in-
stance, in Cameron Highlands, Pahang, Malaysia, the agriculture and tourism industries worth
RM14 billion annually were greatly affected amid COVID-19 (Ishak, 2021), and vegetables were
discarded due to logistic disruption.
During the pandemic, interruption in agri-food supply chain stability was critically caused by in-
consistent supply of agri-food to the market due to restriction in movement. Another impact of
COVID-19 due to the disruption of the food supply chain includes the delay in receiving inputs, re-
duction in cultivation, damage of fresh produce, lower productivity and decrease of farmers’ in-
come. In 2020, Malaysia's GDP fell by 5.6%, contrary to a 4.4% positive growth in 2019. The drop
in the sector's percentage caused by commodities such as palm oil, which was reported to have a
negative growth of 3.6%. Nevertheless, itis still the most significant contributor to the agricultural
sector, with values reported to be RM36.9 billion (37.1%). At the association of Southeast Asian
nations ( ASEAN) level, the Malaysia agriculture sector's contribution to GDP ranges 0.03-22.8%,
with Cambodia and Myanmar each contributing 22.8% (Department of Statistics Malaysia (DOSM),
2021a)
Agriculture products such as paddy, natural rubber, freshwater aquaculture, brackish water aqua-
culture and marine fish had decreased from the year 2019 to 2020 (Department of Statistics
Malaysia (DOSM), 2021a) (Fig. 2). The annual productivity had slightly increased in the following
year (2021) except for marine fish. Generally, Malaysia's producer price index (PPI) declined from
2019 to 2020. However, in October 2020, there was an increase in the PPI of local production. This
was a subsequent in the increase of the mining index with 71.2%. The increase in the price of
crude oil (79.8%) and natural gas (38.2%) also led to the rise of PPI index. The agriculture,
forestry, and fishing index also experienced an increase with only 19.1%. The increase in the pro-
duction of palm oil, poultry and poultry’s produce (egg) contributes to the rise in the agricultural
index (Department of Statistics Malaysia (DOSM), 2021b)
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71251723, 3:11 PM ‘Areviow on post-COVID-19 impacts and opportunites of ag-ood supply chain in Malaysia - PMC
Masnefn —ralshuster—eshaater Papo as
1 of rops ard series (000tnne)
Figure 2
‘The impact of COVID-19 on the annual production of the selected crops and fisheries in Malaysia
between 2019 and 2021
‘The figure was created by the authors from the data ofthe Department of Statistics Malaysia (DOSM) (202d
r y Dep
Generally, the production of commodity crop was reported lower in 2020 than 2019, Malaysia is
known to be the second largest palm oil producer and exporter globally, accounting for 26% of
the world production and 34% of the world exports in 2020 (International Trade Administration
(TA), 2021). In 2021, the production of crude palm oil had declined by 1.02 million tonnes
(Malaysian Palm Oil Board (MPOB),2022a), however it was still the highest compared to other
agri-commodities’ production, The total production of palm oil in the year 2021 was lower than
2020 but higher in price (Malaysian Palm Oil Board (MPOB), 2022b). The reduction in palm oil
production was associated to the labour shortage that had caused RM6 to RM9 billion loss in
2020 and 2021, respectively (Jzmir,.2021). This scenario was mainly due to the return of foreign
workers to their home country resulting from the closing of the border by the Malaysian authority
and some were caused by invalid work permits (Mei, 2021). To cope with this problem, the gov-
ernment of Malaysia had decided to absorb 32,000 fully vaccinated foreign workers into the plan-
tation sectors (Izmir, 2021).
Labour shortage following by the restriction in mobility during the COVID-19 pandemic had re-
sulted in the decline of another agri-food production in Malaysia, In 2020, the production of pep-
per was reported to decline 3.1 thousand tonnes and fruit production fell by 0.7% over the same
period, On the other hand, the operation of agri-production system that involved local labour was
not significantly affected. For instance, Malaysia's vegetable production increased by 0.9%, with
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Pahang being the top producer with 35.1%, followed by Johor (20.2%) and Kelantan (12.5%).
Johor was recorded as the most fruit-producing state in Malaysia contributed 36.0%, followed by
Pahang (13.1%) and Sarawak (12.0%) (Department of Statistics Malaysia (DOSM), 2021).
‘The world is moving backwards in the efforts to end hunger, and the impact of the COVID-19 pan-
demic has further deteriorated the food security and nutritional status of the vulnerable popula-
tion (Food and Agriculture Organization of the United Nations (FAQ), 2020b). In Malaysia, rice and
cattle were mainly for the domestic consumption, while commodity crops were mainly for exports.
Palm oil, cocoa, pineapple, and pepper are among the main export crops covering roughly 75% of
cultivated land. The government meanwhile encouraged farmers to target on the higher-value
crops. This strategy threatened the national sustainable rice production system in maintaining the
domestic rice self-sufficiency level at 65-70% (Mohamed Arshad et al, 2011).
‘The crisis of post-COVID-19 had shown several unsustainable aspects of agricultural production
and supply chain models. Agriculture production is almost entirely dependent on migrant workers
and relies on imported fertilizers and animal feeds. In 2020, RM4.6 billion was spent for animal
feed and RM3.2 billion for fertilizer (Department of Statistics Malaysia (DOSM), 2021c). The travel
bans and the border closure were greatly bound to cause problems such as labour shortages, dis-
ruption to food supplies, food hoarding, logistics and transportation and hence, resulted in the de-
crease in trading efficiency (Organisation for Economic Co-operation and Development (OECD),
2020). Therefore, the government of Malaysia was urged to embrace comprehensive planning to
transform the current agriculture model into a more dynamic, flexible and sustainable in the near
future. The review of the trade policies and cooperation at the international level are important to
ensure agri-food availability in stabilizing the food supply chain.
Agricultural food supply chain in Malaysia
‘The agri-food supply chain holds a momentous role in driving the economy of Malaysia, which
contributes to an important proportion in the national GDP. In Malaysia, the agri-food marketing
system involves a dynamic and huge range of activities in the supply chain procedures, as summa-
rized in Fig. 3 (Yok et al, 2016). Generally, this conventional supply chain was considered loose,
fragmented, duplicable in function and unstable (Arshad, Mohamed & Latiff, 2006) even before
the hit of COVID-19 pandemic. The application of a centralized manufacturing system in the food
chain was risky and caused significant disruption during the COVID-19 pandemic. In fact, central-
ization aimed at increasing production and reducing costs. However, it triggered rigidity and pro-
longed food supply chain issues (Aday & Aday, 2020). Additionally, using a small number of large
manufacturer facilities to achieve food demands might jeopardise the supply chain (Almena et al.
2019). This was evident especially during MCO implementation, which led to the closure and break
of the production line.
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FRESH
MARKET
|__f sapoueMan’
RETAIL
(CENTRALIZED
GROWERS }4] sTorAce }} PLANNING
STORE
el oo
boat mene
OCS
INDUSTRY
FOOD
Byprodoct |_| sanueactunne | Rerai
INDUSTRY STORE
igure 3
Flow diagram of the agricultural food supply chain in Malaysia that involved huge range of acti
from grower, wholesaler and manufacturer before reaching to the final consumer.
Modified from Yok et al. (2016). (CC BYNC-ND 4.0) htips://ereativecommons.org/licenses /by-neend/4.0/
‘Throughout the COVID-19 outbreak, many countries imposed total lockdown and movement re-
strictions to curb the infection. The quarantine policies for importing and exporting agri-food
within countries had worsened the impact of the pandemic on the agri-food supply chain. During
the pandemic of COVID-19, the agri-food supply chain involving two major aspects: food supply
and food demand, had considerably influenced and impacted food security. The perspectives of
food security during the COVID-19 crisis included availability (supply), accessibility, utilization, sta-
bility (Zurayk. 2020) and food safety (Hood and Agriculture Organization of the United Nations
(FAO) & World Health Organization (WHO), 2020). The COVID-19 crisis had affected food security
and supply chain in both supply (production capacity and distribution) and demand (consumer
behavior) aspects, Disruptions in the complex web of the food chain created simultaneous sur-
pluses for producers and shortages for consumers.
Food availability and accessibility became more vulnerable during the COVID-19 pandemic. The
enforcement of MCO nonetheless should not affect the food chain activity. Nevertheless, the agri-
food supply chain and the marketing system were undergoing a drastic transformation forced by
the implementation of MCO. The challenges in handling the demand of consumers, overcoming
food production, issues due to lockdown, minimum workers, limited operation hours, and strict
import and export trade policies were critical (Alsuwailem et al, 2022). The restriction of move-
ment disrupted the supply, logistics and demand sides and triggered various challenges in the
food supply chain (Eig.4). The food supply chain in Malaysia is highly dependent on labour for its
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operations, from the production to the marketing, Labour shortage during COVID-19 crisis dis-
rupted the dynamic network in food supply chain and limited food accessibility. In order to man-
age these issues, the government of Malaysia should develop and embrace an effective food sup-
ply chain to meet the demands of consumers and secure food safety at the same time.
+ Shortage of agricultural + Restrict daily supply
Input and labour + Increase the delivery timing
+ Increase in input price and transportation cost
+ Limited supply of + Decrease agi food quality
importedfruits and and shellife
vegetabledue tostrict Suppl) Leaieio «Limit access for farmer
trading policy
esi | ditcton |" See
aman
+ Shortage of agr food
+ Increase in food price
+ Reduce in farmer's income
igure 4
‘The impact of COVID-19 on the agri-food supply chain due to disruption from the supply, logistic and
demand sides, resulted food shortage and food price spikes.
Data modified from Mishra. Singh & Subramanian (202:
Labour force
Agriculture sectors employed approximately 10.28% of the total employment in Malaysia in 2019
and contributed to about 8% of the country's GDP (The World Bank, 2022). During the outbreak
of COVID-19, the high rate of transmission among workers’ health and labour shortage had been
the major issues in the agricultural industry. Workers from low- and middle-income countries with
little to no savings were obliged to work despite the self-isolation protocol during the COVID-19
pandemic, Hence, these workers were at high risk of COVID-19 infection (Occupational Safety and
Health Administration (OSHA), 2020). In Malaysia, a standard operation procedure (SOP) had
been established to protect the workers in the palm oil and rubber sectors towards the fulfillment
of consumers’ demand (Abdul Aziz, Mohd Sukor & Ab Razak, 2020),
Besides, the travel ban had contributed to a shortage of seasonal and temporary farm workers
(international Organization for Migration (JOM), 2020) and led to a workforce shortage in most
farm producers. There was a rapid increase in employment losses around the world. International
labour organization (ILO) estimated that the COVID-19 pandemic had affected 81% (2.7 billion
workers) global workforce due to full or partial closure of the workplace (International Labor
Organization (ILO), 2020). In order to sustain the food demand, agriculture was one of the sectors
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115‘11703, 244 PM |Arevew on pos-COVID-19 impacts and opportunites of agrsood suply chan in Malaysia - PMC
that was required to be kept functional. However, the mobility restrictions had kept seasonal and
temporary workers from travelling to their workplace and hindering the productivity of this es-
sector (Kalantaryan, Mazza & Sci i, 2020).
In Malaysia, it was reported that unemployment reached 4.8% in the last quarter of the year 2020
compared with 3.2% in 2019 and 4.3% in 2021. The labour force of Malaysia, however, is on the
increasing trend from 15.77 million in 2019 to 15.92 million in 2020 and 16.14 million in 2021
(Department of Statistics Malaysia (DOSM), 2022a) (Eig. 5). Interestingly, the annual employed per-
centage in the agricultural sectors increased from 1,541.1 thousand people in 2019 to 1,566 thou-
sand in 2020 (Department of Statistics Malaysia (DOSM), 2021a). This was mainly due to the re-
striction in the operation of manufacturing, tourism, and hospitality industries during the imple-
mentation of MCO, which impacted the diversion of the labour force into the agriculture sector.
Figur
‘The unemployment percentage and labor force in Malaysia during COVID-19 crisis, 2019 to 2021,
TThe unemployment percentage was the highest (4.8%) in 2020 with labor force achieved 16.1 million in 2021.
This crisis seriously affected the overall Malaysia's economic activities, which can be directly re-
flected in the country’s absolute poverty (ig..6). The absolute poverty in Malaysia increased from
5.6% in 2019 to 8.4% in 2020, significantly due to the increasing rate of unemployment
(Department of Statistics Malaysia (DOSM), 2022a). Moreover, paid employment and self-employ-
ment were reported to decrease by 16.1% and 9.7%, respectively, in 2020, The mean monthly
household gross income had reduced by 10.3% to RM7,089 in 2020 compared to RM7,901 in
2019. In terms of median, the monthly household gross income declined 11.3% in 2020 compared
to 2019. There was an additional 12.5% of households with income of less than RM2,500.
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‘The incidence of absolute poverty in Malaysia and by selected state in 2019 and 2020.
‘The increase of incidence in the national absolute poverty caused by the consequences of the COVID-19
pandemic,
The recent COVID-19 pandemic has again highlighted the importance of food security in Malaysia.
During the outbreak of COVID-19 in the year 2020, only 19 items of agricultural commodities
were recorded for more than 100% self-sufficiency ratio (SSR) compared to 25 items in the year
2019. The declination of 24 out of the 45 agri-food in import dependency ratio (IDR) was contrib-
uted by the external trade restriction crisis. The reduction in production was the implication of the
restriction on the operation hour with a minimum number of employees (Department of Statistics
Malaysia (DOSM), 2021¢). Hence, the Ministry of Plantation Industries and Commodities, together
with the Department of Agriculture of Malaysia, were urged to take appropriate measures to cush-
ion the impact of the COVID-19 crisis towards reviving household income by stabilizing the agri-
cultural-related sectors by providing more employment opportunities. Strategies and policies
were needed to be established and revised, aiming to strengthen the agricultural production sys-
tem and stabilizing the food supply chain.
Post-covid-19 opportunity for reflection
‘The pandemic had reflected the instability of the agri-food supply chain in Malaysia. During the
pandemic of COVID-19, the disruption in logistics and transportation substantially impacted the
accessibility of consumers to agri-food supply, created a panic purchasing trend and led to the
spike in agri-food prices, An increase in agricultural imports in Malaysia is indeed not a sustain-
able measure to combat the potential upcoming health crisis, However, the crisis of COVID-19 cre-
ated an opportunity for developing better flexible approaches in handling emergencies on agri-
food production and supply chains. Therefore, a comprehensive measure involving the policymak-
ers, growers, food manufacturers, wholesalers, research institutions, private and government sec-
tors, retailers, transporters, engineers, and consumers need to be integrated to establish and
strengthen the agri-food supply chain (Fig. 7).
-ntps:wwwnebi nmin. goviomctatcles/PMC10158762/~text=The pandemic had rellected the spike In agr-ood prices 131281723, 3:11 PM ‘Areviow on post-COVID-19 impacts and opportunites of ag-ood supply chain in Malaysia - PMC
Strategy Outcome
Se" eer ee eee
Figure 7
Flow diagram of the potential strategies implemented to the key players and the outcomes obtained
from the food supply chain in Malaysia to secure from the crisis of COVID-19 pandemic,
Government preparation to rejuvenate the agriculture sectors
The government's role in revitalizing the agri-food sectors in Malaysia to cushion the impacts of
this crisis is important through the strengthening of various development plants. The implementa~
tion of the national food securities framework and national agro-food policy 2021-2030 along
with the strategies and initiatives, help to achieve the sufficiency of food supply and compliance
with international food safety standards (Dardak, 2022). The financial plan under Malaysia Budget
2021 aimed to revive the economy and helped Malaysians, especially those who were affected by
the COVID-19 pandemic (Malaysia Government, 2021). Under Budget 2021, the government put
more efforts on encouraging the growth of the economy.
‘The Malaysian government has also identified new directions and strategies that can spearhead
the development of agriculture under the 12" Malaysia Development Plan, Under this plan, the
agriculture sector is projected to grow approximately 3.8% annually and contributed about 7.0%
to the GDP with emphasis on the transformation into a dynamic and competitive sector supported
by research, development, commercialization and innovation (Dardak, 2022). Based on this direc-
tion and together with the industrial revolution 4.0, which focused on digital technology, the gov-
ernment should encourage and convince the producers to accept and adopt the digital platform to
drive their business in exploring new markets, enhancing competitiveness and reducing depen-
dency on the middleman (Amir et al, 2020).
The financial allocation for food security fund during the COVID-19 outbreak should be prolonged
and continued to boost domestic agricultural and fishery production through various forms of as-
sistance, Furthermore, the coverage of fund for the recipients should not only be limited to those
registered under the area farmer’s associations (PPKs) and the area fishermen’s association
(PNKs). This was because the funds were only allocated for farmers and fishermen under the PPK
and PNK, whilst those beyond the associations were neglected (Shaharudin, 2020), According to
-ntps:wwwneb) nmin. goviomctatcles/PMC10158762/~text=The pandemic had rellected the spike In ag-ood prices 14125sn, Pu -Areview on post-COVID-18 impacts and opportunites of agrood supply cain in Malaysia - PMC
the data obtained from the Lembaga Pertubuhan Peladang (LPP) (2017), only less than 5% of the
total vegetable and fruit farmers were under the farmer's organization authority (LPP) (Fig. 8). In
order to achieve the objectives, the authorities should closely monitor and strengthen the agri-
food production line to meet the demand and to ensure the supply chain is uninterrupted.
+180 (288%)
wra%)
230 (1805)
oes)
Figure &
‘The number of vegetables (A) and fruits (B) growers in Malaysia (excluding Sarawak) under the farmer's
organization authority is relatively low in 2017.
Besides, the government plays catalytic role in encouraging new energy into the agriculture busi-
ness. The effort of ministry of agriculture and food industry Malaysia, through the national entre-
preneurial group economic fund, was effective to rejuvenate the national agriculture sector
through implementation of various measures to attract the involvement of young agropreneur
‘Mat Nawi, 2021). This program had funded 750 young agropreneurs in 2021 with RM15 millions
allocation. The government was urged to establish a special committee, such as the immediate ac-
tion unit, that can respond to and deal with the market chain issues, especially in relation to agri-
culture sectors (Amir et al, 2020).
Integrated advanced technology in the food supply chain
Adopting technology in agri-food production systems through the application of technology-inten-
sive systems and environmentally friendly innovations, such as the internet of things (IT) con-
cept, is the key to meeting the high productivity and sustainability goals in rejuvenating economic
growth, oT was introduced during the Industrial Revolution to ease data collection and transfer
over a network using the internet (Ernita, 2015). The use of IoT in agriculture has recently diversi-
fied into the smart farming system, logistic and supply chain management towards visibility
(Abideen et al, 2021), transparency, efficiency, accuracy, cost-effectiveness (Legchekov, 2022) and
reduced dependency on labour. The role of loT in strengthening the supply chain is by empower-
-ntps:wwwneb) nmin. goviomctatcles/PMC10158762/~text=The pandemic had rellected the spike In ag-ood prices 151281723, 3:11 PM ‘Areviow on post-COVID-19 impacts and opportunites of ag-ood supply chain in Malaysia - PMC
ing reliable, consistent, up-to-date data to all the stakeholders (Zhang, Zhao & Qian, 2017) with the
concept of visibility from the producer to the consumer in the supply chain (Somapa, Cools &
Dullaert, 2018).
E-commerce has become an important platform accelerating digital transformation since the
COVID-19 pandemic. In Malaysia, the government has established the national E-commerce
Council to drive the implementation of the national E-commerce Strategic Roadmap 2.0's
Furthermore, the government should proactively and consistently promote the accelerated adap-
tation of e-commerce through campaigns, training, and realignment of the existing incentive for
micro, small and medium enterprises. The government's initiative to strengthen and facilitate
cross-border E-commerce aimed at widening the global market is the key to accelerating the digiti-
zation of the dynamic supply chain in Malaysia. Nevertheless, the rapid growing trend of e-com-
merce in Malaysia has caused significant challenges due to the rapid transformation from a physi-
cal to a digitized supply chain, Therefore, the adoption of loT in the agri-food supply chain is
necessary.
Efforts to rejuvenate the food-based agriculture sectors through lo technology and intelligent big
data analytics in the management of the supply chain allow predictable markets, improved opera-
tional marketing efficiency and enable timely decisions making to avoid unnecessary losses (Tan et
al, 2021), Sharing the big data of the supply chain management within the key players in the sup-
ply chain leads to precision in delivering agri-food from producers to consumers.
Undeniably, the increasing manufacturing of Malaysian agricultural resources has become consid-
erably sophisticated, and food safety is a great concern for the consumers, especially after the
COVID-19 crisis. The issues of information transparency and ensuring the trust between produc-
ers and consumers in the supply chain are relatively important in the food supply chain. The im-
plementation of blockchain technology enables visibility in supply chain management (Rogerson &
Parry, 2020), where a ‘block’ is an information package that contains all the preliminary informa-
tion and the new data (Lyasnikov et al, 2020). This technology can help to overcome the problem
of transparency, security in stock management (Kshetri, 2018), improve the reliability of opera-
tion, secure the confidential transaction and availability of information, and reduce the interaction
timing between participants in the supply chain (Lyasnikov ct al, 2020). Blockchain technology re-
duces and minimizes the material flow parameter due to the change in management paradigm,
where the decision is decentralized (Tapscott & Tapscott, 2017), Integration of technology-ori-
ented, digital networks, robotics and intelligent data analytics with physical processes are crucial
to enhance the supply chain efficiency and invigorate post-COVID-19 economic growth (Fig.9).
-ntps:wwwnebi nmin. goviomctatcles/PMC10158762/~text=The pandemic had rellected the spike In agr-ood prices 161251723, 3:11 PM ‘Areviow on post-COVID-19 impacts and opportunites of ag-ood supply chain in Malaysia - PMC
+ lorinmarketing
+ Ecommerce
+ lotin ogisic + smart aata|
+ loTin agipreduction + Blockchaln technology _ management
+ Smart arming + Roboticinhancing——*_Digtaizaton
+ Increasaprocuctivty & + Inceareeficiency & + Relabilty& precision
sustainabity accuracy Increase accessibity
Reduce production cst + Constency & cost _
i
— effective at
— + Transparency &
—~_taceabiey
a
teu 2
Integrated advanced-technology using internets of things (IoT), digital networks, robotics and
intelligent data analytics to enhance the efficiency and flexibility of agri-food supply chain to invigorate
post-COVID-19 economic growth.
Research and development
Intensive progress in research and development involving the partnerships between private and
government institutions is crucial in solving the problem experienced during the COVID-19 pan-
demic. To sustain the food security issues in the post-COVID-19 era, besides the increase in agri-
food production, the recycling and regeneration of food waste to be reutilized in the food chain
possess huge potential. According to Aldaco et al, (2020), food waste generation at the household
level increased by 12% during the COVID-19 pandemic. The valuable bioactive compounds: pectin,
flavonoids, and essential soil derived from food waste are possible to be reutilized as a preserva-
tive, gelling agent and food supplement (Galanakis, 2013), The research and development on the
innovative extraction, fractionation and stabilization of these potential compounds toward cost
and labour effective in the food production system are much encouraged.
Research collaboration with private sectors in reducing the dependency on the government effec
tively boosts the high productivity and efficiency in the agri-food production system through tech-
nology-intensive and environmentally friendly innovation approaches. For instance, the applica-
tion of robotics technology enhances food safety in the food processing, manufacturing, servicing,
and packaging lines. Robotic machines can lower the risk of human disease infection, reduce
labour dependency, and solve human resource management issue (Carnevale & Hatak, 2020).
In addition, the role of government institutions such as the Department of Agriculture Malaysia,
and the Malaysian Agricultural Research and Development Institute (MARDI) should highlight the
plantation cultivation system of agri-food to replace the conventional and small scaled production
-ntps:wwwnebi nmin. goviomctatcles/PMC10158762/~text=The pandemic had rellected the spike In agr-ood prices
1725sn, Pu -Areview on post-COVID-18 impacts and opportunites of agrood supply cain in Malaysia - PMC
system. The surge in consumer demand of high-quality agri-food has offered great opportunities
for post-harvest technology development and quality management of agri-products in the food
supply chain. The dissemination of the research outcomes, and relevant and appropriate knowl
edge to the targeted stakeholders in the food supply chain aid in accelerating the transformation
towards meeting high productivity and sustainability.
Conclusions
‘The pandemic of COVID-19 had caused global food security and safety concerns. During the pan-
demics, the network in agri-food chain was noticeably interrupted. The restrictions that the gov-
ernments had imposed on the mobility of labour, tightening the import and export policies had im-
pacted the drastic declination in agricultural production. The pandemic has reflected and re-
minded us that a stable and flexible agri-food supply chain is crucial to sustain food security.
Better strategies and policies are needed to be established in strengthening the agricultural pro-
duction system. Research and development in agricultural technology, such as loT, mechanization,
big data management help to reduce the dependency on foreign labour and enhance efficiency in
agri-food supply chain. Technology in optimization used for agricultural land via crop and live-
stock integration needs to be further emphasized to increase the efficiency of land usage. Risk
management analysis should also be conducted to reduce the uncertainty and enhance sustain-
ability in the agri-food supply chain. Collaboration within countries, industries and individuals in
various mechanisms helps to strengthen the stability of agri-food supply chain globally. Therefore,
the government should be ready with the roadmap and enforce the measures to control the pan-
demic without disrupting the agri-food supply chain in the near future.
Funding Statement
‘The authors received no funding for this work.
Additional Information and Declarations
Competing Interests
Lee Chuen Ng is an Academic Editor for Peer}. Tan Say Peng, Zaki Aman, Parthiban Kannan and
Khairuman Hashim are employed by Malaysian Palm Oil Board (MPOB).
Author Contributions
‘Say Peng Tan conceived and designed the experiments, performed the experiments, analyzed the
data, prepared figures and/or tables, authored or reviewed drafts of the article, and approved the
final draft.
Lee Chuen Ng conceived and designed the experiments, performed the experiments, analyzed the
data, prepared figures and/or tables, authored or reviewed drafts of the article, and approved the
final draft.
-ntps:wwwnebi nmin. goviomctatcles/PMC10158762/~text=The pandemic had rellected the spike In agr-ood prices 18125‘nes, 3:11 PM -Areview on post-COVID-18 impacts and opportunites of agrood supply cain in Malaysia - PMC
Novel Lyndon performed the experiments, authored or reviewed drafts of the article, and ap-
proved the final draft.
Zaki Aman performed the experiments, authored or reviewed drafts of the article, critical review
on final draft, and approved the final draft
Parthiban Kannan performed the experiments, authored or reviewed drafts of the article, and ap-
proved the final draft,
Khairuman Hashim performed the experiments, authored or reviewed drafts of the article, and
approved the final draft
Han Meng ‘Teo analyzed the data, prepared figures and/or tables, authored or reviewed drafts of
the article, and approved the final draft.
Muhamad Syazlie Che Ibrahim analyzed the data, prepared figures and/or tables, and approved
the final draft.
Data Availability
‘The following information was supplied regarding data availability:
‘This is a literature review,
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