KUALA LUMPUR: The government will put more allocation into the local agriculture sector under the upcoming 2023 Budget, according to Economy Minister Rafizi Ramli.
There will also be more programmes for the sector to encourage greater public participation.
Rafizi said this was part of the government's aim to lessen the country's dependency on imports over the long term.
"We want this to be more sustainable by introducing more allocation and also programmes to spur the industry further.
"We hope this will encourage more people to participate in the local agriculture sector, and over the long term. The details will be announced during the tabling of the budget," he said at the launch of World Banks' latest Malaysia Economic Monitor (MEM) report here today.
The 2023 Budget will be retabled on Feb 24.
Rafizi said efforts to accelerate digital adoption in the country would be enhanced, starting with the government and its agencies.
"Malaysia's recovery should be centered around building a revitalized economy based on digital, technology, value-addition, creativity and innovation," he added.
Meanwhile, the MEM showed that Malaysia's economic growth was projected to expand by 4.0 per cent in 2023 amid an expected slowdown in external demand.
This follows a stronger-than-expected recovery of 7.8 per cent last year.
As the economy recovered, efforts at harnessing digital technologies can bring returns on growth, productivity, employment, and poverty reduction, the report said.
It noted that the increase in government spending during the Covid-19 crisis to support the economy had raised Malaysia's debt levels and reduced fiscal space.
Therefore, efforts to rebuild fiscal buffers should be driven by higher revenue collection and better spending efficiency.
"An effective policy response should enhance the consumption tax framework, broaden the tax base of personal income tax and streamline reliefs.
"Meanwhile, a gradual shift towards a targeted subsidy framework would help subsidies work better for lower-income households," it said.
The World Bank country director for Brunei, Malaysia, Philippines and Thailand Ndiame Diop said Malaysia needed to revive its potential growth and greater digital diffusion can support this objective along with higher capital investments.
"The digitalisation challenges identified in the report are therefore important," he said.
