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The National Security Council held an emergency meeting this week to discuss the war on Iran. They warn that Malaysia may have to brace for the economic fallout of a prolonged conflict in West Asia, where rising oil prices and supply disruptions could translate into higher food costs at home. So how exposed is Malaysia’s food system? Are we prepared for what’s coming? On this episode of #ConsiderThis Melisa Idris speaks with Dr Sarena Che Omar, CEO of PNB Research Institute, a policy research think tank funded by Permodalan Nasional Berhad. She has long researched policies related to food, agriculture, and sustainability.

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00:10hello and good evening i'm melissa idris welcome to consider this this is the show where we want
00:16you to consider and then reconsider what you know of the news of the day the national security
00:20council held an emergency meeting this week to discuss the war on iran and they warned that
00:26malaysia may have to brace for the economic fallout of a prolonged conflict in west asia where rising
00:33oil prices and supply disruptions could translate into higher food costs at home so just how exposed
00:40is malaysia's food systems and are we prepared for what's coming well joining me on the show to help
00:47me think this through is dr serena che omar who is the ceo of pnb research institute which is a
00:54policy
00:54research think tank funded by pemodalan national berhad she has long research policies related to
01:01food and agriculture and sustainability dr serena it's so good to have you back on the show today
01:08but we are talking about something quite serious and i'm curious to know where you see the risks
01:14for malaysia with the continued disruptions of the strait of humus how might that translate to
01:21higher food prices in malaysia is that something that we should be concerned about well melissa i
01:28mean not just the straits of humus but the whole war in general um if it prolongs we do see
01:35that
01:35there's going to be an impact on global food prices um all around the world and malaysia is likely going
01:41to be impacted as well um as you know the oil prices has gone up above 100 usd per barrel
01:47uh and
01:48with that always usually what follows true is the increase in fertilizer prices um and with that uh
01:55as fertilizer prices goes up as we are going to expect uh food prices is likely to go up now
02:02with
02:03malaysia uh the interesting thing is we both import and produce our own food so when we look at the
02:09angle of our own production we rely on fertilizers right and just my conversations with on the ground
02:17in 2023 the price of a 50 kilogram nitrogen is about less than 100 ringgit this year it has just
02:25before
02:25raya it has gone up to 300 ringgit for a 50 kilo bag and it's expected to be above 350
02:32after raya so with
02:34that we are expecting at least local products the prices are going to go up and because the global
02:40situation is also happening we are going to expect imports of products especially with the full fuel
02:47prices so transports right supply chain and and the moving of food coming into malaysia is also going to
02:53be more expensive so you've got this double whammy melissa whereby both local products as well as
02:59imported products is going to start to be more and more uh expensive unfortunately okay so so we know
03:05the the the crisis or food prices will uh increase uh if that's coming but uh this there are steps
03:13to
03:14be taken to prepare for that and i think one of the suggestions that the agriculture and food security
03:19minister had mentioned was to call for households to grow their own vegetables um dr serena what do you
03:26think about this is this is this a practical solution is it something that is in fact scalable
03:31okay that's an excellent question and a lot of people reacted to that both either positively or
03:37negatively and and the biggest reaction is what we are expecting us to start growing food um how is
03:44that going to solve national food security issue now this is a very important um topic melissa and i'm
03:51actually a strong proponent of growing your own food i'm actually going to write a piece on ulam and
03:56how you can just grow them on the balcony so how is this going to solve food security now when
04:01we talk
04:02about growing your own food we're not talking about growing tomatoes potatoes carrots and onions
04:08because these are some types of foods that don't grow well in malaysia and even if you try to grow
04:13them
04:13it's just not economically viable and we do not have the skill sets to grow them it they require a
04:19huge amount of
04:20technical expertise especially tomatoes cheese um cabbages uh that just you know it's just not
04:27practical however melissa there are actually certain type of uh vegetables that just naturally grows well
04:35in malaysia that they're made to grow in malaysia and these are things that if you were to grow even
04:40in your balcony your small square foot of balcony you can provide sufficient amount of vegetables
04:46vegetables for your household's need and what are these vegetables so what i'm trying to say is that
04:51not all vegetables are made equal right so the things that you can grow really well in malaysia are like
04:58ulam raja daun selo uh pegaga or pennywort um you have the lemongrass you have the chili padi so these
05:07are
05:07things that you can grow that requires very little technical expertise very little pesticides and and uh
05:13fertilizers and what i what's important is the economic viability that means if i were to grow
05:20um it would cost me less than if i were to buy it from the shop so from that angle
05:26from a household
05:27perspective it is a pretty good idea and uh it is something that is doable so uh and i myself
05:33grow them
05:33and i can tell you i have a pegaga at home i have ulam raja and if we were to
05:38follow the ministry of
05:39health uh recommendation of suku suku separo right one quarter protein one quarter uh carbohydrate half
05:46vegetables and fruits right that's the half plate if you were to have even just pegaga ulam uh down
05:52raja uh ula apa tu uh selo ulam raja uh you can make that so in that sense it is
05:59fairly a practical
06:01solution now does that solve the whole food security issue of malaysia no it doesn't because we still have
06:08the carbohydrates we still have the proteins we still have to make sure that malaysians are eating
06:13well but does it elevate a situation where we have vegetables that's very vulnerable to food price
06:21changes does it help the household i believe that it does melissa yeah i mean you named all my favorite
06:27ulam there right there but you're right i mean it it solves a part of the problem but not the
06:34whole
06:34problem and if we were to zoom out and look at malaysia's entire food um ecosystem are we resilient
06:41enough to withstand those economic shocks or any of the supply disruptions that could lead to food
06:48inflation um i guess my question is whether as a country do we know or do we have that right
06:53balance
06:54between local production and importing foods to absorb some of these pressures right so if we we
07:03are a country that fully import all our food even though we have good soil we have land to grow
07:09it
07:09i'd be worried right so that that's one end of the situation and we're not we are producing some food
07:15we're not producing some now uh we do have some balance so at at the overall largest scale of things
07:22we are i can say somewhat balanced so that's good um however uh melissa the issue is what about the
07:29individual so in in agriculture is about the individual uh food items right so let's look
07:35at vegetables some items we fully import such as onions such as cabbages uh whereas some food items
07:42we uh can grow ourselves and we have very high self-sufficiency such as um water spinach spinach
07:49mustard green and i think that's a healthy balance the issue is that the products that we produce fully in
07:57malaysia it's a problem if we produce them all in one area so right now we know that we produce
08:03most of
08:04our vegetables in uh cameron highlands we know that we produce most of our rice in the northern states of
08:10malaysia now that's a risk because one flood one natural disaster one issue and we can potentially have
08:18a supply problem um and or a price problem so my recommendation is yes we can have some you know
08:25we have
08:25that balance of import and local and whereas when it's in local we got to make sure we have not
08:31just
08:31one location but at least two to three now i understand that the unique economies of scale that
08:37means you need to have one area where it's very much targeted for a certain type of growing condition
08:42so that we can be able to sell at a competitive price but not just one location at least two
08:48to three
08:48and i think that's that's a good balance that our country can have yeah and that's an excellent
08:53point particularly as right now we're facing a heat wave that struck the north and so the idea of
09:00diversifying the locations of our food production is really important can you talk a little bit
09:07about the when you're expecting to see the impact because not all vegetables and fruits all grow at the
09:16same time that takes some there's a different cycle of production so can you talk a little bit about
09:22the cycle of food and when you expect that to be the the for the impact to materialize for the
09:30end
09:30consumer yeah so this is a very important concept and this is something that we need malaysians to
09:35understand because uh that it manages our expectation and our our um what you call it how we manage in
09:44terms of the policy for the country now organic things are biological right melissa so nothing grows
09:50the same uh how long it takes for a cow to grow to maturity or a durian tree is totally
09:56different from a
09:57bean sprout or a mustard green plant right so vegetables normally have very short life cycle
10:04very fast very quick within months you can harvest them you can grow them now because they're very short
10:10they're actually very quick to respond to shocks fertilizer price shocks supply shocks weather
10:17shocks um global uh fuel prices fertilizer prices so that's why always when there is a situation that's
10:25happening you hear the vegetables coming in first and that's exactly what just happened uh the last few
10:30days where we got the news uh from camera highland farmers that expect prices of vegetables to go up so
10:36they're always the first they're the first line second would be the cereals because they take a little
10:41bit longer and so you've got the the the corn the rice the wheat that grows a little bit longer
10:48so
10:48you'll see them coming out a little bit later once that comes up the end they become feed to animals
10:54especially uh poultry so you then start saying poultry prices going up a little bit later um down the line
11:01and finally you have fruits fruit trees and um red meats that's a bit more later um so what you
11:08have
11:09is that longer term cycle they tend to be able to average out short-term shocks but these shorter cycle
11:15crops they tend to respond a bit more quickly so we have this this a range of responses and that's
11:22important
11:22and i want people to understand that because it doesn't mean that everything's gonna wham and bam and slam
11:28us in one shot uh it's usually in in phases um so yes okay so so i think we just
11:36have to as
11:36consumers have to understand the the time lag for the the impact of this to materialize dr serena
11:44che omar they're from pnb research institute we're going to take a quick break and we'll be back with
11:49more on this topic make sure you stay tuned
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