Two private sector groups from the Philippines and Malaysia signed a memorandum of understanding (MOU) in Malaysia on Thursday, July 27, for agriculture cooperation and small business development that will benefit both countries.
President Ferdinand Marcos Jr. (center) joins ASEAN Business Advisory Council (BAC) Philippines chair and Go Negosyo founder Joey Concepcion (2nd left) during their meeting with Malaysian business leaders in Malaysia on Thursday, July 27, 2023. Also in the photo are (from left) ASEAN BAC Malaysia chair Tan Sri Nazir Razak, Philippine Chamber of Commerce and Industry (PCCI) President George Barcelon, and Air Asia chief executive officer Tony Fernandes. (Photo from Concepcion's office)
The MOU aims to jointly conduct studies and mentorship channels for potential agriculture, agriculture technology, food security, agripreneurship business models, and value chain development.
In the field of agriculture development, it hopes to explore the production of palm oil, rubber, and other agricultural commodities that may thrive in the Philippines and Malaysia.
Go Negosyo founder Joey Concepcion hailed the MOU for drawing inspiration from the Kapatid Angat Lahat sa Agri Program (KALAP), a Go Negosyo initiative that aims to achieve inclusive and sustainable agriculture through the integration of small farmers into the value chain of large companies.
“Public-private partnerships are essential as we move toward regional economic integration and make our agriculture industries productive and competitive,” Concepcion said.
”We have already several of these big-brother models in the Philippines covering prime commodities like tobacco, coconut and rice, with large Philippine companies like Universal Leaf, Lionheart Farms, and Yovel East successfully implementing their inclusive models in the communities where they operate,” he added.
Through KALAP, farmers can benefit from the transfer of technologies and economies of scale because they can grow their production and have access to new and bigger markets.
Aside from joint studies and mentorship, the MOU will also aim to identify opportunities for business and investment in palm oil, rubber, fruits, poultry, agricultural technology, and other agricultural products and services of Malaysia and the Philippines.
The MOU was signed on behalf of ASEAN Business Advisory Council (ASEAN BAC) Malaysia and ASEAN BAC Philippines by their respective Chairs—Tan Sri Nazir Razak and Concepcion.
It was also witnessed by President Ferdinand “Bongbong” Marcos Jr. during his meeting with Malaysian business leaders as part of his three-day state visit to Malaysia.
“We are confident, that with this partnership with ASEAN BAC Malaysia and the leadership of Chairman Nazir Razak, that both our countries will benefit from sharing our experiences in these areas,” Concepcion said.
For his part, Razak underscored the importance of cooperating in the field of agriculture because of the challenges that Malaysia face in food security.
“Food security is a major challenge for Malaysia, with imports of food accumulated to RM482.8 billion while our food export was only RM39 billion between 2012 to 2022,” Razak said.
“Malaysia needs to not only reduce our food import bills but also become competitive in food agriculture,” he stressed.
As he vowed to pursue efforts to strengthen the MSMEs in the Philippines and the region, Concepcion reported that the ASEAN Mentorship for Entrepreneurs Network (AMEN) had been rolled out to the 10 member-states of the regional bloc through the Japan-ASEAN Integration Fund.
AMEN is the Philippines’s legacy project from its chairmanship.
“With AMEN now ongoing and successful, we want to move a step further. We need to scale up our farmers, fix the land issues so that we achieve the minimum viable point of 24 hectares to achieve scale, and help farmers use technology and incorporate them into the value chain of big corporations while making sure they receive their equitable share,” he said.
Aside from Malaysia, the Go Negosyo founder is pushing for similar agreements with Indonesia, Vietnam, Thailand, Cambodia, and possibly Myanmar, which have strong agricultural industries.