Food Security in Malaysia: An Empirical Analysis of Macroeconomic Determinants

Abstract

Food security is a pressing global issue, with approximately 1 billion people suffering from hunger, undernutrition, and malnutrition. The Food and Agriculture Organization (FAO) defines food security as ensuring that all individuals have continuous and stable physical and economic access to sufficient food. This concept encompasses four essential components: availability, access, utilization, and stability. This study aims to develop a conceptual model of food security and its economic determinants, with a focus on Malaysia. The research employs a comprehensive approach, combining time series analysis and econometric techniques to examine the relationship between food security and six macroeconomic variables: food production index, inflation, food imports, land under cereal production, precipitation, and temperature. The results indicate that food production, food imports, and temperature have a positive impact on food security, while the other variables are not statistically significant. The variance decomposition analysis reveals that own shocks are the primary source of variation for all variables, with land cereal and perticipation expected to have the highest impact on food security in the long run. The study's findings have implications for policymakers seeking to enhance food security in Malaysia and other developing countries.