Forecast: Arable Land Area in Malaysia

The area of arable land in Malaysia has undergone various changes over the past decade. From 2013 to 2023, there was a general reduction in the land area, from 802.7 thousand hectares in 2013 to 821.57 thousand hectares in 2023. Key periods of stability can be observed from 2017 to 2021, where the land area remained consistent at 826 thousand hectares. The forecast from 2024 onwards indicates a gradual decline, reaching 810.9 thousand hectares by 2028. The compounded annual growth rate (CAGR) from 2023 to 2028 is expected to be -0.21%, reflecting a steady downward trend.

In the short term, the most notable variation occurred between 2022 and 2023, showing a -0.27% decrease. Similar reductions are projected year-on-year as per the forecast model. Long-term, the last 5-year CAGR was -0.11%, indicating a slower pace of reduction compared to the forecasted -0.21% for the next 5 years.

Future trends to watch for include environmental policies, land-use changes, agricultural innovations, and urban expansion. These factors will likely impact the arable land area and could either mitigate the declining trend or accelerate it.

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