KUALA LUMPUR: July 14, 2026 – The Dewan Rakyat today passed the Padi and Rice Control (Amendment) Bill 2026 by a majority vote, following debates involving 23 Members of Parliament from both the government and opposition blocs yesterday.
The key amendment is to Section 22 of the Padi and Rice Control Act 1994 (Act 522), which raises the general penalty rate to a maximum fine of RM250,000 for individuals, while companies or corporate bodies can be fined up to RM1 million. Deputy Minister of Agriculture and Food Security, Datuk Chan Foong Hin, said the existing fine rates were found to be extremely low and had not been reviewed since the act was enacted in 1994.
During the debate, Keningau MP Datuk Seri Panglima Dr Jeffrey Gapari Kitingan expressed his support for the bill but urged the government to examine its implementation with modifications that respect the spirit of Malaysia’s formation, the promises of the Malaysia Agreement 1963 (MA63), and the provisions of the Federal Constitution which guarantee power-sharing rather than the centralisation of power in Putrajaya.
He stressed that Malaysia is a federation, not a unitary state, and that Sabah, together with Sarawak, agreed to form Malaysia subject to constitutional safeguards – guarantees that certain matters would continue to remain under state jurisdiction.
“The question is not merely whether Sabah supports or rejects the proposed bill to enhance national food security. The question is whether such efforts should be carried out by centralising power in Putrajaya to the extent of reducing or eroding the space of power guaranteed by the Constitution to the states, particularly Sabah and Sarawak,” he said.
He explained that padi and rice are not merely commodities or a staple food for the people, but are closely tied to the agricultural industry, food security, land use, rural development, water resources, irrigation, farmer welfare, and state economic development.
According to Jeffrey Kitingan, under the Federal Constitution, land and water fall under the State List, while several aspects related to agriculture are in the Concurrent List. This means that, specifically for Sabah and Sarawak, both state governments have the power to enact laws on these matters.
The Keningau MP also raised the issue of Sabah’s rice self-sufficiency rate, which is far lower at only 21 per cent, higher logistics costs, extensive interior areas, different agricultural production structures, and heavy reliance on imports.
He also urged the federal government to recognise Sabah’s padi granary areas and approve the planting and irrigation allocations that have been applied for over several years.
“Sabah needs the flexibility to determine policies, licensing, incentives, the development of Sabah’s padi granary areas, direct rice import powers, strategic stock management, including distribution and marketing mechanisms appropriate to local scenarios,” he said.
He proposed that the government consider a mechanism that better respects the federal structure and the rights of Sabah and Sarawak, whether through exemptions, delegation, or the devolution of administrative powers to the Sabah and Sarawak governments.
“Food security is a shared responsibility. However, in a federal country like Malaysia, food security cannot be used as a pretext to erode the division of powers that has been agreed upon in the Constitution,” he said.
“What we need to strengthen is federal-state cooperation, not centralisation of power. That is the true spirit of federalism. That is the true spirit of MA63 and the spirit of the formation of Malaysia in 1963,” he said.
In his winding-up speech, Deputy Minister of Agriculture and Food Security, Datuk Chan Foong Hin, informed the House that the ministry was prepared to negotiate with the Sabah Padi and Rice Board, as well as Sarawak, to strengthen food security and ensure the orderly development of the industry in both states.
He also said the government would maintain flexibility in managing rice supply, including allowing different approaches for certain states.
The Padi and Rice Control (Amendment) Bill 2026 will now be brought to the Dewan Negara for approval before receiving Royal Assent from the Yang di-Pertuan Agong.
