Sheikh Omar Ali calls for targeted funding, modern processing facilities and stronger supply chains to turn local fruit into higher-value products

KUALA LUMPUR: Malaysia should use Budget 2027 to develop its fruit industry into a higher-value manufacturing and export sector, rather than focusing mainly on increasing agricultural production, says DAP leader Senator Sheikh Omar Ali.

Sheikh Omar, a member of the Dewan Negara, a member of DAP’s Central Executive Committee and deputy chairman of DAP Johor, said the country needed to invest more strategically in fruit processing, technology, product development and export markets.

He said the industry had the potential to create new business opportunities, attract private investment, generate skilled jobs and increase the value of Malaysia’s agricultural output.

“Fruit should no longer be viewed simply as an agricultural product, but as part of a wider agenda involving investment, jobs, processing, exports and gross domestic product growth,” he said in a Facebook posting.

He added that Budget 2027 should help move the sector beyond funding farming activities towards building a stronger fruit-processing industry.

Target funding for fruit processing

Sheikh Omar proposed establishing a dedicated fund to develop Malaysia’s fruit-processing industry.

The fund could support factories, processing machinery, packaging technology, cold-chain facilities, storage, grading systems and automation.

Priority should be given to commercially viable projects with clear plans to source fruit from local farmers, develop export markets and produce higher-value goods using suitable technology.

He said the government did not need to own or build every processing plant. Instead, it could encourage private investment through infrastructure, financing, guarantees, incentives and a supportive business environment.

He said government assistance should be assessed based on the results achieved, including the amount of private investment attracted, new products developed, jobs created and export earnings generated.

The broader objective is to ensure that more of the value created from Malaysian-grown fruit remains within the domestic economy.

Reduce post-harvest losses

Improving how fruit is handled after harvesting should also be a priority, Sheikh Omar said.

He called for more modern collection centres, cold storage, grading facilities, better packaging and other post-harvest infrastructure to reduce waste and improve product quality.

Fruit that does not meet the appearance standards of the fresh market could still be used for processing if it remains safe and suitable for consumption.

Such fruit could be turned into puree, juice, concentrate, powder, jam and other food products.

This would allow farmers to find additional buyers for their produce while giving processors a more reliable supply of raw materials.

Better storage and handling could also help businesses maintain consistent supplies and meet the requirements of domestic and international customers.

Move up the export value chain

Malaysia should aim to export more than fresh fruit by developing processed food, specialised food ingredients, premium products and Malaysian brands for international markets, he said.

Sheikh Omar said local businesses would need stronger support in certification, food safety, compliance with importing countries’ standards, halal certification, branding and international marketing.

Expanding exports of processed products could create more economic value from each kilogram of fruit produced, while opening new opportunities for manufacturers and food-processing companies.

However, success would depend on businesses being able to meet market demand, maintain consistent quality and compete on price.

Turn research into commercial products

Sheikh Omar also called for stronger links between universities, research institutions, government agencies and private companies to accelerate innovation in the fruit industry.

Research priorities could include developing fruit varieties suitable for processing, extending shelf life, freeze-drying, improving food formulations, developing packaging technology, automating production and making better use of fruit by-products.

He said research should address actual industry needs and lead to products that could be commercialised.

Closer cooperation between researchers and businesses would help bridge the gap between laboratory discoveries and products that can be sold locally or exported.

Develop a skilled workforce

The expansion of fruit processing would also require more skilled workers in food technology, automation, quality control, packaging and supply-chain management.

Sheikh Omar said workforce development should be included in the government’s industrialisation plans to ensure businesses have access to the skills needed to adopt new technologies and expand production.

He said young Malaysians should be able to see opportunities in food processing, food technology and exports, rather than viewing agriculture only as work on farms.

Investment in skills would help local businesses improve productivity, maintain quality standards and compete in international markets.

Measure economic returns, not just spending

Sheikh Omar said government programmes should be judged by their economic outcomes rather than simply the amount of money spent.

Key indicators should include private investment attracted, processing plants operating commercially, farmers gaining reliable market access, jobs created, new products brought to market and export earnings generated.

These measures would help determine whether public funding was building a sustainable industry rather than creating facilities that depend on continued government support.

“The ultimate measure is simple: have we managed to increase the value generated from every kilogram of fruit produced by Malaysian farmers?” he said.

“Not just more fruit, but more value from the fruit we produce.”

He said a stronger processing industry could help Malaysia improve farmers’ incomes, expand local businesses and build a more competitive food-manufacturing sector.

The challenge for Budget 2027, he added, is to turn the country’s agricultural resources into higher-value products, stronger exports and better economic opportunities for Malaysians.