Dr Sarena Che Omar
Chief Executive Officer
Dr Sarena has ten years of policy research experience within the think tank arena. She was previously a Deputy Director at Khazanah Research Institute leading the food and agriculture policy research pillar, with a DPhil in Plant Science from the University of Oxford, United Kingdom. She graduated with a First Class Honours in Bachelor of Science from Lincoln University, New Zealand.
[email protected]Abstract
Recent revelations by MARDI confirm widespread malpractice in Malaysia’s rice market, where local rice is being mixed with imported rice and sold at premium prices under misleading labels. This article explores the structural and policy-induced factors behind such behaviour, rather than focusing on identifying culprits. It highlights how prolonged price controls, specifically the Guaranteed Minimum Price for paddy and the ceiling price for local rice have created a “squeezed middle” in the supply chain, reducing profitability for millers and incentivising unethical practices. Drawing on economic theories and international case studies, the article argues that controlling both ends of the supply chain has made the industry uncompetitive and vulnerable to manipulation.
Furthermore, existing legislation lacks specific provisions to regulate the mixing of rice types, leaving consumers exposed. The article proposes a phased, well-communicated reform of the rice price ceiling as a more sustainable path forward—one that protects consumers while revitalising the domestic rice industry. Without addressing these structural inefficiencies, Malaysia risks continued malpractice and a deeper reliance on imports, which threatens its long-term food security.