Machinery and Technical Efficiencies in Selected Paddy Areas in Malaysia

Abstract

Malaysia’s paddy sector frequently relies on machinery in its activities, from land preparation until harvesting. However, the shortfall of meeting domestic demand, ineffective use of machinery, mismanagement, and technical inefficiency were among the sector’s challenges. This study analyses the socio-economic effect on machinery and technical efficiencies in Malaysia’s Muda Agricultural Development Authority (MADA) and Integrated Agricultural Development Area Barat Laut Selangor (IADA BLS) paddy areas. Qualitative data were collected using a face-to-face interview. The results confirmed that MADA respondents were highly trained, more educated, and more efficient in using machinery in the agriculture sector than IADA BLS. The same goes for MADA’s productivity, energy outputs, machinery efficiency, labour, and technology use, which were higher than IADA BLS. However, inadequate planning and managing farm activities led to poor paddy field conditions, including insufficient water supply system, irregularly shaped paddy field plots, and increasing difficulties in handling paddy diseases and maintaining the machinery. These challenges resulted in a frequent interruption of paddy production activities, incurring additional costs, decreasing profit, and jeopardising the farmers’ financial status. Therefore, it is recommended to use types of machinery that fit a particular purpose in terms of cost and technology and ensure the required services are carried out on time to maximise machinery efficiency. On the other hand, technical efficiency’s main challenges were the high operation cost and increasing fossil fuel use, combined with a lack of government subsidies. Research and development in agricultural energy use, environment, and government subsidies could decrease production costs and improve paddy production.