Johor is seeking to enhance its agro-based industry by transforming its major food crops into higher-value products, brands and businesses, according to Md Israk Abdullah, chairman of the state’s agriculture, agro-based industry and rural development committee.

Johor, Malaysia’s top producer of fruits, industrial crops and herbs, and second-leading producer of vegetables and cash crops, contributed 17.3% to the country’s agricultural gross domestic product (GDP) last year—the highest among all states. Speaking at the launch of the Agro-based Industry Exhibition in Johor Baru, Md Israk emphasized the need to move beyond increasing raw agricultural output to strengthening downstream industries that add more value to the state’s produce.

“From the produce, we want to see products, brands and value,” he said, highlighting that entrepreneurs must improve product quality, packaging, production capacity, certification and marketing strategies to meet evolving consumer demands both locally and internationally.

Last year, Johor’s agro-based industry (IAT) achieved RM517 million in sales, involving nearly 1,800 registered entrepreneurs under the guidance of the Johor Agriculture Department. The state government aims to help these entrepreneurs expand beyond small and medium-sized enterprises by facilitating access to digital platforms, modern retail channels, and domestic and overseas markets.

To support this goal, the Johor Agriculture Department has allocated RM4.1 million this year to benefit approximately 130 agro-based industry entrepreneurs. The funding is intended to assist with upgrading food processing facilities, equipment, packaging and labelling design—including nutritional analysis. It also supports the adoption of new technologies, such as Internet of Things (IoT) systems and artificial intelligence applications at business premises.

Md Israk noted that integrating these advanced technologies and improving marketing capabilities are critical steps for Johor’s agro-based sector to remain competitive and capitalize on its agricultural strengths. The broader strategy aims to enhance the state’s position as a leader in agribusiness innovation while generating greater economic value from its agricultural production.