Agricultural incentives in Malaysia: Trends, patterns and policy implications

Prema Chandra Athukorala, Wai Heng Loke

Research output: Journal PublicationArticlepeer-review

2 Citations (Scopus)


Malaysia is notable among developing countries for its long-standing commitment to maintaining a relatively open trade policy regime. However, there are still some anomalies in the incentive structure that encourage channelling of resources into unproductive activities. This paper aims to (i) provide an analytical narrative of the nature and evolution of trade and the related accompanying policies impacting on domestic agriculture, with a focus on the underlying political economy, and (ii) examine the degree and changing patterns of incentives to domestic agriculture encompassing both direct (sector specific) incentives and indirect incentives emanating from economy-wide policies. The study covers the period from 1960 to 2004 with an emphasis on four major agricultural products: natural rubber, palm oil, cocoa, and paddy/rice.

Original languageEnglish
Pages (from-to)151-173
Number of pages23
JournalMalaysian Journal of Economic Studies
Issue number2
Publication statusPublished - Dec 2009
Externally publishedYes


  • Agricultural trade policies
  • Distorted incentives
  • International trade
  • Malaysia

ASJC Scopus subject areas

  • General Economics,Econometrics and Finance


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