EPP 10: Strengthening Productivity of Paddy Farming in MADA

  • GNI by 2020 (mil)
  • Projected jobs by 2020

EPP 10.0 - Strengthening Productivity of Paddy Farming in MADA

Led by MADA (Muda Agricultural Development Authority), this EPP aims to establish Malaysia’s long-term food security and increase the income of paddy farmers. This will be achieved by adopting the estate farming approach under a single management in the Muda vicinity in Kedah, introducing a land amalgamation scheme for 50,000 ha (51% of the total 96,558 ha) of paddy fields by 2020.

Traditional farmers will be provided incentives to exit their individual farming operations and join the new land amalgamation scheme.

The adoption of technologies will also be intensified across the production chain of the paddy and rice industry, such as the introduction of new seed varieties, use of new nano fertilisers, improved irrigation, and larger scale farm mechanisation. These initiatives aim to raise the paddy yield from 5 MT per ha to 8 MT per ha by 2020.

The Muda granary area accounts for 37.1% of national rice production and 24.1% of the total rice cultivation area in Malaysia. Together with rice industry regulator BERNAS, MADA is finalising the establishment of a special purpose vehicle (SPV) to implement initiatives to streamline the whole value chain of the industry, from seed production to the sale of rice.

In 2013, MADA aims to amalgamate another 5,000 ha of land in the Muda area, bringing the total to 15,000 ha of land amalgamated under the estate farming model. A central management is expected to manage the amalgamated land to increase the income of participants by 5%. Meanwhile, the construction of infrastructure for seven irrigation blocks will begin at Tambun Tulang, Pendang, Kepala Batas, Kubang Sepat, Pengkalan Kundur and Tajar.


  • An additional 5,000 hectares of land was amalgamated in 2014. Land amalgamated in the Muda area spanning Kedah and Perlis produced 243,200 tonnes of paddy in 2014.
  • To date, a total of 20,186 hectares of land involving 8,817 farmers has been amalgamated. Some farmers have seen yields more than double and average incomes rise 19% since joining the programme.

Project Owner

Economic Transformation Programme
The ETP Transformation Story
The Economic Transformation Programme (ETP) is a comprehensive effort that will transform Malaysia into a high-income nation by 2020.
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