A study of some economic aspects of farmers' association in the central states of Peninsular Malaysia

Abstract

The development of Farmers' Associations in Malaysia under the Farmers' Association Act of 1967 has been given special emphasis by the Government of Malaysia, because of the expectation that this will be the organisation to help modernise and uplift the economy of the rural community. This thesis attempts to look into some of the potential problem areas that might hinder the development of this new institution, and tries to highlight the problems that need to be looked into in more detail before arriving at any definite conclusion. This study serves to locate problems rather than to solve them. Studies on the leadership pattern of the Associations reveal that the better educated farmers, farmers who operate larger farms, and those who hold higher social positions, are leading the Associations. There is also the suggestion that there are some non-farmers among these leaders. Indications available suggest that some leaders of the Associations utilised their position of leadership for personal gains whereas others made some beneficial contributions towards the Associations. On the financial aspect, the study reveals that the private sector played a leading role in financing the Farmers' Associations. Other indications of this part of the study, however, point to some unfavourable situations, especially those of the loan and credit recovery. There is also an indication to suggest that the rate of return on capital is low and declining.