- SEA governments need ag budgets that support food security ambitions.
- Former IFPRI director-general calls on governments to demonstrate that commitment to agriculture with funding.
- Industry must push for more public funding.
Speaking at the Asia Pacific Agri Food Summit in Singapore last week, Fan Shenggen said that while governments frequently emphasise food security and agricultural transformation, many fail to dedicate sufficient resources to achieve those goals.
“Many governments say, ‘We pay attention to agriculture, to food systems, to nutrition, health,’ but towards the end of the day, they don’t spend any money,” said Fan, now chair professor at China Agricultural University and dean of the Academy of Global Food Economics and Policy (AGFEP).
Public spending lags behind ambitions
Fan’s criticism comes as SEA faces mounting pressure to strengthen food security, improve productivity and build resilience against climate-related shocks.
According to Fan, many countries in the region continue to underinvest in agricultural research and development despite the sector’s importance to economic growth and food supply.
“I must say that here in SEA, they spend a smaller proportion of money on food and agriculture than many other countries – less than that in India and China. And on aquaculture, I think even less.”
While governments remain the largest investors in agriculture and rural services, an August 2025 ISEAS Perspective paper reported that all ASEAN countries except Thailand have consistently allocated less than 10% of their annual national budgets to agriculture.
It also noted that Malaysia, the Philippines and Cambodia have seen the largest declines in investment.
The paper linked weak agricultural growth to low levels of public investment, noting that governments remain the largest source of funding for agriculture and rural services across the region.
While the food, agriculture and forestry sector attracted approximately 10% of foreign direct investment in 2020, much of that capital was directed towards supply chain traceability, transparency and information systems.
More action from public and private stakeholders
Fan called on governments to provide tangible funding for research, innovation and agricultural transformation.
“China spends probably 1%, maybe close to 2%, of agricultural GDP equivalent on agricultural research. India is also increasing, but here in SEA, countries do not pay attention. They spend very little money on agricultural research,” said Fan.
He expressed his frustration at governments that claim agriculture is a priority and challenged them to demonstrate that commitment.
“Show me the budget… It cannot be just lip service; it has to be the dollars,” said Fan.
He emphasised that policy underpins every aspect of successful agricultural innovation.
“I think policy is so critical. For example, policy can help set up an enabling environment for investors to come in and also help de-risk investment. Governments can use certain funds to de-risk, maybe provide insurance or other support.”
Just as importantly, governments should set up regulations to provide a set of rules that the private sector and other stakeholders can follow, he said.
“I cannot emphasise enough how important policy is in creating that enabling environment for everybody: consumers, smallholders, the private sector and even citizens to act together.”
At the same time, Fan urged stakeholders across agriculture to play a more active role in advocating for greater public investment in the sector.
“We need to push… We can use our social media, our scientists, our economists, the private sector to push the government to spend more and spend on the right thing.”
