Climate Change and its Economic Impact on Sustainable Agricultural Production in Malaysia: An aggregate Analysis

Abstract

Sustainable agricultural production in Malaysia is under climate change’s threat. Several climate-driven factors such as heat waves, irregular and excessive rainfall patterns, storms, and floods are the current worries of many farmers in the country and these factors put together put their livelihood in jeopardy. Future predictions indicated a significant further variability in climatic patterns with irregular rainfall. This study aims to investigate the economic impact of climate change on agricultural production in Malaysia by aggregating all agricultural productions over the 1990 – 2021 period. A time series econometric method called autoregressive and distributed lag (ARDL) method was utilised to achieve the study’s objective. The result of the study revealed that climate change has statistically significant negative impact on agricultural production in Malaysia. This implies that food production through agricultural production in the country is being adversely affected by climate change. As such, climate change mitigating strategies are strongly recommended with strict implementation to ensure sustainable agricultural production. Other recommendations include the practice of agroforestry, planting of climate resilient plants, crop rotation, and the use of soil smart technology. These actions will assist in minimising the adverse effect of climate change on agricultural production and indirectly boost food production.