Smallholders Transformation and Persistence in the Fast Growing Economies of Malaysia

Transcription

1 Smallholders Transformation and Persistence in the Fast Growing Economies of Malaysia Khairul Hisyam Kamarudin, PhD & Ibrahim Ngah, PhD

2 Contents Introduction 01 Defining smallholders: Malaysian Context 02 The Story of Two Rice Farming Communities in Malaysia Contributing Factors to Smallholders Transformation & Persistence Conclusion

3 01 Introduction This paper exami es the tra sformatio of sma ho ders i the rura areas of Ma aysia a d factors for their persiste ce a d sustai abi ity, based o the case studies of t o vi ages i differe t oca ities, havi g differe t eth ic origi s, historica a d eco omic backgrou d. I formatio used i the study is based o the fie d orks (i -depth i tervie s of key i forma ts) carried out i Ju y & August 2017

4 Fieldwork 2017 Study areas 13 July arrival at Villa Gemilang Homestay, Parit 6 (East) Sungai Besar Selangor July household survey at Kg. Parit 6 (East) 09 July arrival at Merchong Chalet, Pekan Pahang + field visit July household survey at Merchong

5 02 Defining Smallholder: Malaysian context The term emerged during the era of British occupation in which the agricultural landscape can be divided into two: (1) small agricultural landscape of indigenous farmers which served as a source of staple food for the population of Malaya, and (2) large agricultural landscape based on the estate system which cultivated coffee, sugar, black pepper, tobacco and later rubber which were largely owned and operated by European capitalists and newcomers from China (Buang, 2007).

6 Small farmers represent an inferior and marginalised mode of production in the formation of social capitalism of a laissez-faire economy during the colonial period. They were characterised as small players who are relatively naïve and uneducated on advanced money management for wealth creation, marketing strategy, usage of technology and scientific research and development (R&D) methods. Defining Smallholder: Malaysian context The Malay farmers or peasantry were also described as contented, self-sufficient, rural small-scale farmers and fishermen (Omar, 1986).

7 Defining Smallholder: Malaysian context Smallholder literally means a small size of land holding, but to quantify the size of land considered as small is very subjective. The traditional practices to divide the parcel of land between 1 to 2 hectares. Sabak Bernam, Selangor, the standard lot size of a rice field is 3 acres (1.2 hectares) (Ngah, et al., 2013). Parit Tengah, Johor, the Indonesian migrants who opened the village divided the land parcel into 5 acres (approximately 2 hectares) for each person.

8 Section 16(1)(b) defined smallholders as: the owner or lawful occupier or lawful representative of the owner or lawful occupier of any land of an area of less than one hundred acres, which is included in any scheme under this Part and the aforesaid person continues so to participate for the duration of such scheme; Rubber Industry Smallholders Development Authority Act 1972 (Act 85)

9 Farmers Association Board defined that a farmer is: any person who is a citizen of Malaysia, has attained the age of 18 years and Farmer Organisation Act 1973 (Act 109) (a) is engaged in agricultural or livestock production; (b) whose income is derived from agricultural or livestock production; or (c) is in command of any of the factors of agricultural or livestock production, shall, subject to any regulations made hereunder, be eligible to be a member of a Farmers Organization.

10 Definition >> implications (if adopting the definition from Act 85) The programme to assist the small farmers will only include those within the definition, i.e. those with legal ownership of land area of any size less than 40.5 hectares. For those without legal ownership of land, they will be excluded from government grant schemes for small farmers/smallholders. Thus, this will lead to wealthy farmers reaping the most out of the benefits from the subsidy scheme provided by the government. Landless farmers or workers in farm could not benefit from any government grant schemes and/or subsidy for smallholders in any ways. Moreover, the definition allows legal loopholes for farmer families who own more than 40.5 hectares or 100 acres to benefit from subsidy schemes where they can divide the land title into smaller parcels under different family members.

11 Category of smallholders Supported or scheme smallholders who are structurally bound by contract or credit agreement to a particular mill or agencies such as Federal Land Development Authority (FELDA) and the Federal Land Consolidation and Rehabilitation Authority (FELCRA). Independent smallholders who are selforganized, self-managed and self-finance, and therefore can decide more freely with regard to the management and cultivation of crops + not contractually bound to any particular agencies or mill but tend to face more challenges such as less productive and lower quality produce. Nagiah & Azmi (2012)

12 % Labour force Current issues / challenges Contribution Agri sector to GDP and Labour Force (%) %KDNK / GDP Contribution to GDP according to Sectors (%) Primary sector/industry - natural products; agriculture, mining and forestry, gas etc. Secondary sector/industry - processing; manufacturing & construction Tertiary sector/industry - services; retail sales, entertainment, financial organizations etc Next R

13 03 The Story of Two Communities Fieldwork 2017 Study areas 13 July arrival at Villa Gemilang Homestay, Parit 6 (East) Sungai Besar Selangor July household survey at Kg. Parit 6 (East) 09 July arrival at Merchong Chalet, Pekan Pahang + field visit July household survey at Merchong

14 Study Approach Conducted in stages begin with Merchong village on 10 th to 11 th July 2017 (two days), followed by Parit 6 (East) village (13 th to 14 th July 2017). Researchers have interviewed both the head of the village to better understand the history of the village and development of socio-economic activities in the village with particular focus on smallholders issues and achievements Photo 1: Interview session with (L) Tok Muda Abdul Halim at his home in Merchong village, 11 July 2017; interview with Tok Sidang Mohamad Yasin and village secretary (R) at Parit 6 (East). Research fieldwork in 2017

15 CASE 1: Development of Merchong Interview with Tok Muda Abd Halim More immigrants and interstate migrants are coming in (1990) Mostly the poor and landless families from Kedah (relatives to those coming from Myanmar) Local people from Pahang Did not undergone much transformation maintain job in traditional economic sectors and fisherman Interested in getting the land title but not keen to work with immigrants to develop rice cultivation area 1980s Present Appointed as the village head At the age of 30, retired from army Serious de-population issue in Merchong Marked the beginning of NEP in 1970s + establishment of FELDA Group of immigrant workers from Myanmar arrived at nearby plantation Invited outsiders to work together with locals to transform vase swamp into rice cultivation area (85 families accepted) and resettled in Permatang area Rising the number of population (1993) Primary school (from 52 students increased to >1000 students) Need to construct new school buildings and classrooms 8000 acre of swamp area have been transformed into rice cultivation area 1000 acre were granted TOL (no legal land title = no subsidy can be channeled by government) Lack of government intervention (develop systematic irrigation and aided schemes, only rain water harvesting) Total population of 3000 people (considered as large for rural/village) Rice cultivation become seasonal (farming and crab fishing)

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17 CASE 2: Development of Parit 6 (East) The village (Kampung) is headed by Tok Sidang (head of village) Mohd Yasin + 80 families with population of 280 people Is a systematic village divided into four sub-blocks (or subclusters) labelled as E9, E10, E11 and E12 (Figure) + 4 block leaders and they will be reporting to the head of village rice plots for each block and each rice plot come is size 3 acre. In total, the head of village will be responsible to monitor and regulate all activities in all four blocks or approximately 200 rice plots in total.

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19 Pertinent role of state and government agencies in supporting smallholders development and transformation Controlling canal/irrigation system, monitoring of flood gates and disseminating irrigation schedule before new cultivation season begin. Monitoring of rice cultivation process, controlling plant diseases, disseminating aids /government subsidies and introducing new variations of rice seeds. Constructing and updating physical infrastructure (irrigation system and organising specific projects related to rice farming communities).

20 1 st August (3-4 days) (Clearing rice straw and burning of straw) End of July (End of harvesting season) 10 days later Schedule for new cultivation season released by Agriculture Department Mid of November (Day-110) (Beginning of harvesting season) Fertilizer Round 4 (fruit fertilizer) Refining plot / check on the remaining of straw 60 days after cultivation 14 days later Ploughing (Round 1) 14 days later Ploughing (Round 2) 10 days later Ploughing (Round 3) Ploughing (Round 4) end of September 3 to 4 days later 1 st October (Channelling of water to rice plots/opening of water gates by DID) The whole process took approximately 100 to 110 days Operational cost = RM3000/plot/season + Plot rental = RM3000/plot/season Fertilizer Round 3 (organic fertilizer) 15 days later Fertilizer Round 2 (urea) 15 days later Fertilizer Round 1 (mix fertilizer) 15 days later Weeding and pest control rumpai Flooding of cultivation plots 9 th October: Refining plot/ploughing (Round 5 optional) RM3000 = USD770 l USD770 x 2 = 1540 x 2 = 3080/12m = 257 (RM1000/m) & net income = RM /plot/season 10 th October (Beginning of cultivation) 7 to 10 days later 11 th October (weeding and pest control) pracambah In Parit 6, rental for one rice plot (3 acre) is RM3000 per season (or RM500/month) or RM6000 per year, and it is considered as lucrative business for many people with/inherit large amount of rice plots.

21 04 Contributing Factors to Smallholders Transformation and Persistence Merchong village (1) Possession of multi-skills; (2) strong networks of family relations/kinship support and; (3) active participation in varieties of nonagriculture economic activities Adoption of local knowledge in strengthening local economic system based on rotation of activities (majority of farmers) to sustain livelihood (rice cultivation only 1 season/year) Rich farmers investing in swift nests project as a long term investment (provide continuous income and located near to their house)

22 04 Contributing Factors to Smallholders Transformation and Persistence Parit 6 (East) village (1)Self-realization that their livelihood and the community is shaped by rice cultivation + farming with multiple functions (agro-tourism etc.) (2)Symbiotic relationship and pertinent role played by various government agencies/local cooperatives to ensure rice farmers received proper assistance.

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24 05 Conclusion key findings The legality of land is important in smallholding activities, and this is clearly showed while observing both cases Failure to obtain land status could deny much needed assistance and incentives provided by state & government agencies responsible for smallholders Farmers or smallholders in both villages gained higher socio-economic status by utilizing multiple skills They are able to diversify source of income through involvement in both farming (diversification of crops) and non-farming projects (agrotourism, swift nest projects, crab fishing, etc.) Role and commitment of state government and other government agencies are crucial to ensure continuous support are available for modernizing the agriculture sector, particularly the smallholders Through strengthening local institutional support and extension services, promote training and agropreneur development, and improve market access and logistic support Presence of internal support system through kinship assistance and the success of their children Where their relatives / children will contribute back to their parents in terms of financial/supplementary income and man power support have positive implications to smallholders persistence. This research concluded that smallholders in both study areas seems to remain determined, should they are able to get hold to their land regardless of the challenges they might face in the future. Smallholders would also benefit greatly, following the arrival of interested newcomers in the agriculture sector and the government s continuous effort to provide assistance and subsidy.

25 THANK YOU Terima Kasih Website: khairulhkamarudin.wordpress.com Khairul Hisyam Kamarudin, PhD & Ibrahim Ngah, PhD