Social Capital for Human Capital Creation for Oil Palm Development in Malaysia
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Grant Category, Year: Cluster Research Grant, 2020
Abstract
Malaysia aims to continue strengthening its macroeconomic resilience for growth in the twenty first century. The 11th Malaysia Plan places great emphasis on human-anchored and people-centric growth as the main driver that will accelerate the growth of Malaysia well into the twenty first century. The agriculture sector is targeted to contribute about 7.8% to overall GDP by 2020, but as reported in the mid-term review in the first quarter of 2020, oil palm sector is primarily responsible for causing the decline in agriculture sector to -8.7% due to a contraction in the production in Crude Palm Oil. The decline in palm oil production in the first quarter of 2020, however, demonstrates a greater need to enhance human capital for the revival of the agriculture sector, namely the oil palm sector. Now it seems more imperative than before to strengthen local human capital to replace foreign workers that have been reduced due to the pandemic COVID 19. Studies on human and social capital for agricultural growth, namely oil palm in Malaysia are not a novelty. Many studies have also stressed on economic means to create and develop human capital such as education, skills, knowledge and physical and monetary assets. In comparison, some studies, although not many, argued for non-economic means such as social capital (i.e. social networks, trusts and norms) to develop the sectors. However, what is lacking is the study on the link between human capital and social capital at theoretical, methodological and empirical levels; in other words it appears that human capital is regarded an entity independently created of social capital. This is a contrast to a sociological theory made by Coleman who argued for the creation of human capital through social capital and Granovetter on the embeddedness of economic action in social relations.
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