Sabah is the second-highest beneficiary of Digital AgTech after Selangor

SANDAKAN, MALAYSIA 16 February 2025 – The Malaysia Digital Economy Corporation (MDEC), the nation’s leading digital economy agency under the Ministry of Digital (KD), organized the Malaysia Digital Tour (JMD) @ Sabah, focusing on the adoption of Artificial Intelligence (AI) through the ‘Malaysia Digital Agriculture Technology’ (Digital AgTech) initiative.

The launch of the Malaysia Digital Tour @ Sabah was officiated by the Minister of Digital, Gobind Singh Deo, alongside the Deputy Minister of Plantation and Commodities, Datuk Chan Foong Hin.

According to KD, the program emphasizes the modernization of the agricultural sector through digital technology to enhance competitiveness, productivity, and strengthen national food security, in line with MDEC’s appointment as the Strategic Technology Validator by the Ministry of Agriculture and Food Security (KPKM).

“Sabah is the second-highest beneficiary of Digital AgTech nationwide, after Selangor. In 2024, over 70 Digital AgTech systems powered by IoT technology were implemented across Sabah, covering all agricultural sub-sectors, including crops, livestock, and aquaculture. In 2025, an additional 10 systems are targeted, with 5 AI-powered Digital AgTech systems to be implemented for the aquaculture and livestock sub-sectors.

“The JMD @ Sabah program is part of the government’s ongoing efforts to stimulate the digital ecosystem nationwide. This initiative aligns with the target of increasing the digital economy’s contribution to 25.5% of GDP by 2025 and supporting efforts to create over 500,000 new jobs,” said KD.

Digital transformation in the agricultural sector is a key focus of the government, in line with the National Agrofood Policy 2021-2030 (DAN 2.0), the National Food Security Policy Action Plan 2021-2025, and initiatives under the National Digital Economy and Fourth Industrial Revolution Council (MED4IRN).

To ensure sustainable growth in the sector, the government will continue to strengthen close collaboration between KD, KPKM, the Ministry of Economy, and related agencies.

KD added that MDEC, as the implementing agency for Digital AgTech, plays a crucial role in ensuring that digital technologies developed by technology partners benefit agricultural entrepreneurs, enhancing the efficiency of the agricultural sector.

“As of the end of January 2025, over 600 Digital AgTech systems have been implemented nationwide, while 30,000 agricultural entrepreneurs have received training to adopt the Internet of Things (IoT) and AI in their daily operations.

“The Digital AgTech initiative, which spans all major agricultural sub-sectors in our country, helps empower farming operations through the adoption of digital agricultural technologies based on real-time data to boost productivity, income, and reduce overall operating costs, addressing food security issues driven by digital technology adoption.

“Among the encouraging achievements recorded include productivity increases of up to 20%, income growth of up to 20%, and operating cost reductions of up to 30%, contributing to the digital transformation of the agricultural sector and strengthening national food security,” said KD.

Digital AgTech has also provided encouraging benefits to the B40 community and attracted greater participation from youth, with over 50% of participants under 40 years old, potentially generating additional income of up to RM10,000 annually through digital technology adoption.

JMD @ Sabah included sessions sharing the impact of digitalization in agriculture and engagement sessions between agricultural entrepreneurs and industry stakeholders to discuss challenges and opportunities within the Digital AgTech ecosystem.