Malaysia’s Highland Farmers Face Perfect Storm Of Challenges
The region’s 2,200 farmers, who traditionally supplied a third of the country’s vegetables, are battling a perfect storm of challenges: rising operational costs, labour policy changes, intense import competition, and climate vulnerabilities.
In the misty peaks of Cameron Highlands, Malaysia’s vegetable bowl is showing signs of strain.
Once a thriving agricultural hub producing nearly a third of the nation’s vegetable supply, farmers grapple with a complex web of challenges threatening their survival.
A Malaysian Chinese farmer checks his sheltered lettuce beds in Bertam Valley, Cameron Highlands, where plastic canopies have become essential tools for year-round cultivation. (Pix: Fernando Fong)
Cameron Highlands produces approximately 1,000 metric tonnes of vegetables daily under favourable weather conditions.
Chai Ee Mong, decades the secretary of the Cameron Highlands Vegetable Growers Association, paints a stark picture of the industry’s current state.
Our harvests have dropped by 30-40 per cent recently.
A Highland Tale of Soil and Survival
Speaking to TRP, he said the mathematics of farming here has become increasingly challenging.
The highland farming community, comprising approximately 2,200 farmers, faces growing challenges, particularly among smallholders who cultivate less than five acres of land.
The agricultural tapestry of Kampung Raja seen from above, where countless plastic rain shelters protect valuable crops in Malaysia’s premier highland farming region. (Pix: Fernando Fong)
Most of these farmers are of Chinese descent, many being first or second-generation farmers whose families have worked in these lands since the 1950s.
They find their agricultural livelihoods increasingly precarious in today’s economic climate, with production costs rising by an estimated 40% over the past five years.
A weathered first-generation Malaysian Chinese farmer tends to his roadside vegetable stall in Tringkap, Cameron Highlands, surrounded by the day’s fresh harvest. His calloused hands arrange neatly stacked bundles of leafy greens and highland vegetables – the fruits of decades of toil on the mountain slopes. (Pix: Fernando Fong)
Input costs, including fertilizers and pesticides, have surged by 25-30% annually, while average crop yields have remained relatively stagnant.
Furthermore, these smallholders typically earn 30-40% less per acre than larger commercial farms, primarily due to economies of scale and limited access to modern farming technologies.
Labour Costs Squeeze Margins as Policy Changes Bite
Even during low-price periods, farmers still have to pay for the Temporary Occupation License (TOL), Chai explains.
Many farmers in Cameron Highlands have been operating on land with TOLs for years, which provides them limited security and is subject to state regulations.
Beyond these licensing uncertainties, the basic cost structure of farming itself is daunting, said Chai.
About 30-40% goes to pesticides and fertilizers, and another 30-40% to workers’ wages, not counting depreciation and maintenance costs.
Farms in Cameron Highlands are predominantly located on steep slopes, which reduces efficiency per acre and drives up costs due to the need to construct stilts and terraces. (Pix: Fernando Fong)
When Numbers Make the Farm
Recent policy changes have added to farmers’ burdens.
The financial implications are significant – as of November 2024, Malaysia has approximately 2.41 million registered foreign workers, nearing a cap of 2.5 million set by the government.
Cameron Highlands relies heavily on foreign labour, with estimates of 5,000 to 7,000 foreign workers, primarily from Indonesia and Bangladesh, who are crucial for the agricultural sector.
A Bangladeshi worker repairs rain shelters at a farm in Tringkap, ensuring crops are protected from unpredictable weather conditions in Cameron Highlands. (Pix: Fernando Fong)
As Import Barriers Fall, Highland Farmers Seek Alternatives
The removal of import APs has led to a 35% increase in vegetable imports from neighbouring countries since 2023.
Market data shows that imported vegetables now account for approximately 40% of Malaysia’s total vegetable supply.
Citing cabbage as an example, Chai explained how local farmers struggle to compete with imports.
While Cameron Highland’s farmers’ wholesale prices hover around RM2.50 per kg, imported cabbage from Indonesia, China, and Vietnam consistently enters the market at below RM2 per kg.
This price disparity, he added, is a typical pattern across most vegetables, where imports routinely undercut local produce prices.
It’s still profitable, but margins are thin.
Some farmers in Cameron Highlands have turned to strawberry farming – only to face another challenge with declining tourist numbers.
A deserted shopping area in Kea Farm, Cameron Highlands, stands empty, highlighting the decline in tourist activity in the once-bustling marketplace. (Pix: Fernando Fong)
Inside Malaysia’s Widening Farm-to-Table Gap
Malaysia’s vegetable demand-supply gap is concerning.
In October 2024, Malaysia’s vegetable imports amounted to RM2.52 billion, leading to a negative trade balance of RM1.99 billion.
Chai said the country needs three million tonnes annually but produces only two million tonnes, necessitating massive imports.
Cameron Highlands, which once contributed 600,000 metric tonnes of vegetables annually in the 2010s, now averages 450,000 metric tonnes, a 25% decline over the past decade.
Two tomatoes lay idle along a conveyor belt at a sorting facility on a small Tringkap, Cameron Highlands farm. The region produces around 1,530 tonnes of tomatoes per month on average, representing roughly 19.2% of the total vegetable production in the area. (Pix: Fernando Fong)
In September 2024, severe winds damaged numerous rain shelters and greenhouse structures.
Chai said it affected an estimated 200 farms and caused damages worth RM15 million.
This wasn’t an isolated incident – historical weather data shows a 40% increase in extreme weather events in Cameron Highlands over five years between 2019 and 2023.
The combination of market competition and climate vulnerability has forced farmers to seek alternatives, with some expanding to areas like neighbouring Lojing in Kelantan.
Plastic sheets meant to protect barren slopes lie torn and tattered after being battered by strong winds, reflecting the vulnerability of farming infrastructure in Cameron Highlands. (Pix: Fernando Fong)
Support Schemes Fall Short as Farmers Battle Price Swings
Current support mechanisms also appear inadequate.
The diesel subsidy of RM200 for farmers in Cameron Highlands is viewed positively, but many face eligibility issues due to stringent conditions, specifically regarding the criteria tied to their earnings and business registrations.
And there are no subsidies for essential inputs like fertilizers and pesticides.
Farmers are urging the government to review subsidy eligibility criteria to support smallholders.
Bags of fertilizers stacked at a farm in Cameron Highlands, highlighting the essential yet costly inputs required to sustain agricultural productivity in the region. (Pix: Fernando Fong)
Market volatility adds another layer of uncertainty.
Celery prices have dramatically swung from less than RM1 to over RM20 per kg within months. Similar fluctuations affect other produce, including onions, which vary from under RM1 to RM6 per kg.
Similar fluctuations affect other produce, including onions, which vary from under RM1 to RM6 per kg.
Food Security at Crossroads: Cameron Highlands’ Uncertain Future
The once-reliable livelihood of Cameron Highlands’ farmers is now shadowed by growing uncertainty.
Known as one of Malaysia’s most vital agricultural regions, the highlands produce approximately 1,000 metric tonnes of vegetables daily under optimal conditions.
However, as weather patterns grow increasingly erratic, this output becomes more challenging to sustain.
An aerial view of a farm adjacent to a tea plantation in Cameron Highlands, where old tea estates gradually give way to vegetable farming as agricultural land becomes increasingly scarce. (Pix: Fernando Fong)
With a population of around 32 million, Malaysia has a significant vegetable appetite.
Malaysia’s total vegetable consumption is approximately 1.47 million metric tonnes per year, based on a per capita consumption of 45.9 kg and a population of 32 million.
Yet, Cameron Highlands, which once contributed a quarter of the nation’s vegetable supply, now accounts for just 15%—a steep decline over the past decade.
Defying gravity and good practice, terraced farms cling precariously to Cameron Highlands’ steep mountainsides, transforming virtually every available slope into a patchwork of agricultural plots. (Pix: Fernando Fong)
Mounting Pressures Amid Climate Change and Import Reliance
The implications extend far beyond the highlands.
Malaysia’s growing reliance on imported vegetables has sparked broader concerns about food security.
As global supply chains face disruptions from geopolitical tensions and climate change, the country’s dependence on external sources risks leaving it vulnerable to shortages and price volatility.
Aerial view exposes hidden farmlands carved into Perak’s forest reserves along the Titiwangsa Range, as agricultural pressure from Cameron Highlands spills beyond its borders. (Pix: Fernando Fong)
Without immediate and effective policy interventions, the sustainability of local agriculture could be in even greater jeopardy.
For now, the future of Cameron Highlands’ farmers hangs in the balance, emblematic of the more significant challenges facing Malaysia’s agricultural sector.
As the country grapples with the dual pressures of feeding its population and preserving its agricultural heritage, the need for decisive action has never been more urgent.
A broken-down Land Rover, once a staple vehicle for farmers, lies abandoned by the roadside, covered in moss and plants—a poignant symbol of the challenges eroding the farming industry in Cameron Highlands. (Pix: Fernando Fong)