SAB1401

INTRODUCTION TO
AGRIBUSINESS

THE FUTURE OF AGRIBUSINESS

 Learning Objectives
At the end of the lecture, students should be
able to:
• Discuss the future of agribusiness sector in
terms of K-economy and e-commerce
 Towards Malaysian
Agribusiness 2020

“AGRICULTURE IS BUSINESS”

o To transform agriculture into agribusiness

- market centricity, economies of scale and
value chain integration
o To increase the population’s income
Management of Food
Supply Chain
 K-economy

“…one of which the generation and exploitation of

knowledge has come to play the predominant part in
the creation of wealth. It is not simply about pushing
back the frontiers of knowledge; it is also about the
most effective use and exploitation of all types of
knowledge in all manner of economic activity”
(DTI Competitiveness White Paper 1998)
 K-Economy in Malaysia

o The Malaysian economy is still in the process

of evolving from a production-based economy
(P-economy) into a knowledge-based
economy (K-economy)
 K-Economy in Malaysia
(cont’)
To achieve a developed nation status by the
year 2020, Malaysia should move away from
the export led strategy of the assembly and
production of valued added manufacturing
using cheap labour to industries where
knowledge intensity would bring about the
productivity of high quality value goods and
services to contribute to quantum leaps in
knowledge
 The Challenge in
Preparation for K-Economy

o The human capital development is an integral

and important agenda in the national master
plan
o Malaysia’s progress in the transition to K-
economy has been hampered by its lack of
appreciation and investment in R&D and
innovation activities
 The Challenge in
Preparation for K-Economy
(cont’)
ohe competitive environment of tIssues like
demand and supply of highly skilled labor,
positive values, the provision of relevant
human resource training and education,
creative thinking and improvements in ICT
literacy are imperative for economic growth
and suitable development in the New
Economy
 E-commerce in Malaysia

o According to a recent SME survey,

70% of SMEs in Malaysia still do
not have a website