Kuala lumpur: Digital financial management could become an important enabler of Malaysia's food security agenda by strengthening the financial resilience of paddy farmers, supporting productivity improvements and ensuring more sustainable domestic rice production. According to BERNAMA News Agency, Universiti Putra Malaysia's (UPM) School of Business and Economics associate professor Dr Hasri Mustafa emphasized the importance of financial management in the modernization of Malaysia's paddy sector. While traditional efforts have focused on inputs like seeds, fertilisers, mechanisation, and irrigation, financial management is now recognized as a crucial pillar for industry development. Dr Hasri highlighted the financial vulnerabilities faced by paddy farmers, who typically earn income only twice a year post-harvest, making effective financial planning essential for sustaining farming activities. Dr Hasri explained that financial digitalisation enables farmers to transition from informal financial management t o proactive, data-driven decision-making by providing better visibility into production costs, cash flow, and expenditures. This shift is not just a support tool but a foundational pillar allowing farmers to manage volatility, plan effectively, and protect their livelihoods. Dr Hasri also pointed out that stronger financial management aligns with the government's broader food security agenda under the 13th Malaysia Plan (13MP) 2026-2030 and the National Food Security Policy (DKNM) 2030. These initiatives aim to boost domestic rice production and sector competitiveness, with the 13MP targeting a RM2.5 billion value-added contribution from the paddy sub-sector through increased planting frequency, technology adoption, and improved irrigation systems. Observations and fieldwork by Dr Hasri's research team revealed that over 90 per cent of Malaysia's paddy farmers lack systematic financial records, relying on informal methods, mental notes, or incomplete paper records. This deficiency limits their ability to tr ack production costs, income, or expenditure accurately and optimizes subsidy utilization and access to formal financing. Digital financial tools could address this gap, enabling farmers to maintain structured financial documentation, improve cash-flow management, and support evidence-based policymaking. UPM's development of iPADI, a digital financial management platform, aims to assist paddy farmers in recording income and expenditure, monitoring production costs, and improving cash-flow planning. Currently undergoing User Acceptance Testing (UAT) with 225 farmers in Tanjung Karang, Selangor, the platform shows early signs of improving budgeting practices and financial visibility. However, Dr Hasri noted that the project is still in the UAT stage, and further validation across multiple planting cycles and locations is required before drawing statistically significant conclusions. Looking ahead, an estimated 150,000-180,000 paddy farmers, or 65 to 80 per cent of Malaysia's rice farming community, could bene fit from digital financial management tools over the next five years. Achieving this will require continued government support, enhanced digital literacy, increased smartphone adoption, and collaboration between financial institutions and agricultural agencies. Financially literate and digitally empowered farmers will be better positioned to strengthen Malaysia's rice sector's resilience and competitiveness, supporting the country's long-term food security agenda.