Up to 68% Savings?! This M’sian Innovation Could Help Ease Fertilizer Costs Amid Price Hikes

LocalBusiness & Finance
23 Apr 2026 • 2:45 PM MYT
Goody Malaysia
Goody Malaysia

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Up to 68% Savings?! This M’sian Innovation Could Help Ease Fertilizer Costs Amid Price Hikes

Ever wonder how a war happening miles away can still hit your wallet here in Malaysia?


It usually starts with fuel prices. But it doesn’t stop there. Once costs go up, it triggers a chain reaction — affecting everything from groceries and gadgets to daily essentials.


Take farming, for example.


Behind the scenes, farmers are dealing with a growing problem: fertilizer is getting harder to source and way more expensive. And that’s not random. Global conflicts, supply chain disruptions, and export restrictions have all made fertilizer supply increasingly unstable.

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Malaysia isn’t spared either 


Malaysia currently produces only around 39% of the fertiliser it needs, making it heavily dependent on imports to fill the gap. 


At the same time, major suppliers like China have begun restricting exports to safeguard their own food supply, while ongoing tensions along key shipping routes such as the Strait of Hormuz have driven up both costs and delivery times.


In some instances, raw material prices have spiked dramatically — rising by as much as 100% to 150% within just a few weeks — forcing local producers to halt new orders altogether.


As fertilizer prices climb, farmers are left with difficult decisions on how to manage their costs. And sooner or later, those increases are passed down the chain, ultimately affecting consumers.

During the launch of the National Food Security Policy 2030, Deputy Prime Minister Datuk Amar Haji Fadillah bin Haji Yusof also warned that rising input costs could create a ripple effect, pushing food prices higher both globally and locally.

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Not every farmer is hit the same way

While larger farms may still have the capacity to absorb rising costs, smallholders often don’t have that same buffer.

Working with limited budgets and lower yields, even a small increase in fertiliser prices can take a serious toll. 

For them, having reliable and affordable access to fertilizer isn’t a luxury — it’s critical to keeping their farms running.

So it raises an important question:

Is there a more affordable, homegrown alternative?


Yup, We Just Found One!

Indah Water Konsortium (IWK) may have found a potential solution to the problem by repurposing waste and turning it into fertilizer.

Through its research arm, the Indah Water Research Centre (IWRC), IWK has developed an organic fertiliser derived from biosolids — a treated by-product from sewage treatment plants.

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To test its effectiveness, the fertiliser was applied to a range of plants under greenhouse conditions. This included ornamental plants like vinca, marigold, Japanese rose and petunia, as well as food crops such as okra, mustard greens, brinjal and sweet potato.

The results were promising. Plants showed healthier growth, while soil quality also improved. The fertiliser supplies key nutrients like nitrogen, phosphorus and potassium — all essential for strong crop development.

Even more importantly, testing found no traces of heavy metals in the harvested food crops, indicating that it is safe for agricultural use.


Is it working? YES!

In one field trial, coconut trees that had been severely stressed by extreme heat began to recover after being treated with IWK’s fertiliser and plant booster. Within five months, new leaves started to grow, and fruit production picked up again.

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Another study involving Napier grass, conducted over 15 months, also showed stronger growth and a noticeable increase in biomass.

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But beyond performance, what really matters to farmers is cost.

In that same coconut trial, farmers saw an estimated 68% reduction in fertiliser expenses, as the product required less frequent use and smaller application volumes compared to conventional options.


It is both effective and affordable

Unlike conventional fertilisers that often require large application volumes, IWK’s organic fertiliser is formulated to deliver concentrated nutrients in a more efficient way.

This allows farmers to achieve similar results while using less, which becomes especially valuable during periods of supply uncertainty.

With around 7% NPK content, the fertilizer is not only designed to nourish crops, but also to improve overall soil health.

Over time, it helps restore soil balance that may have been affected by long-term use of chemical fertilisers, supporting healthier ecosystems and more sustainable agricultural output.

In addition, the product has gone through extensive safety evaluations, including toxicology testing and regulatory compliance checks. A Material Safety Data Sheet (MSDS) has also been developed to ensure proper handling and adherence to safety standards.

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And It’s Supported By Our Religious Authorities

Another key factor to consider is public acceptance.

In Malaysia, biosolids-based fertilisers have been reviewed by religious authorities. 

The National Council for Islamic Religious Affairs has ruled that their use is permissible, as long as they are proven to be safe and beneficial.

This view is also supported at the state level through issuance of fatwa (edict), including by Pahang, along with earlier approvals from Negeri Sembilan, Kedah, and Selangor.

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Why this matters more than ever

At present, Malaysia continues to strengthen its fertiliser supply through imports and new international partnerships.

However, relying heavily on external sources also exposes the country to ongoing risks and uncertainties.

This is where local alternatives become increasingly important.

Currently, IWK is able to produce around 4 to 5 tonnes of organic fertiliser daily, with the capacity to scale up further. The company also has plans to expand production facilities across the Northern, Central, Eastern, and Southern regions of Peninsular Malaysia to improve accessibility and reduce logistics costs.


One step towards the greater good

This may not replace imported fertiliser entirely in the near future, but for smallholder farmers, it could still bring meaningful relief.

Lower costs, more stable supply, and improved soil health all add up to real impact on the ground.

And for the wider picture, it represents one step forward towards a more resilient and sustainable food system.

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