National farmers’ group cleans house, shuts nine subsidiaries as scrutiny grows over Malaysian farm support

KUALA LUMPUR, Sept 7 — Malaysia's national farmers' organization, Pertubuhan Peladang Kebangsaan (Nafas), is embarking on a significant restructuring following years of financial setbacks. With the Malaysian Anti-Corruption Commission probing delays in the delivery of supplementary compound fertiliser to around 38,000 paddy farmers in Kedah's Muda Agricultural Development Authority region, Nafas is closing nine of its 16 subsidiaries and narrowing its focus to agricultural inputs, which contribute over 95% of its revenue.

The organization's general manager, Muhammad Faris Arriffin, revealed that the financial struggles were inherited during the current management's tenure in March 2023, as Nafas reported net losses and debts exceeding RM400 million in the 2022 fiscal year. Nafas's core business revolves around the distribution of fertilizers and other agricultural supplies, backed by government contracts worth up to RM2 billion annually.

The remaining six subsidiaries are dedicated to Nafas's primary activities, with four engaged in fertilizers, pesticides, and other farm inputs, while two focus on the palm oil sector.