Malaysia is making significant strides in the drone technology sector, with top drone services companies like Aerodyne Group, Meraque Group and Aonic Group currently ranked among the best in the world based on their size, growth, funding and visibility.

Malaysia is also recognised as progressive in drone readiness — it was ranked No 21 by Drone Industry Insights in 2023 — which is indicative of strong government support for the industry.

Drone market size is expected to reach US$54.6 billion (RM260.82 billion) by 2030, with Asia projected to experience the highest growth. The Malaysia Drone Technology Action Plan 2022-2030 (MDTAP30) aims to contribute significantly to the GDP, creating an anticipated cumulative value of RM50.71billion by combined efforts underscore Malaysian Research Accelerator for Technology and Innovation’s (MRANTI) holistic approach to position Malaysia as a leader in Southeast Asia in the realm of drone and robotics technology, says Minister of Science, Technology and Innovation (MOSTI) Chang Lih Kang.

Agriculture is now the second most drone-adopted industry after construction, with a market for agricultural drones worth US$1.3 billion. Agricultural drones appear to have a bright future: According to estimates, the industry is expected to reach US$5.7 billion by 2026, growing at a compound annual growth rate of 25%. As drone prices fall and agricultural drone software becomes more complex, demand is only expected to increase.

Drones provide significant advantages in agriculture, asset management and security surveillance, with major industry players like Petroliam Nasional Bhd (Petronas), Sime Darby Plantation Bhd and Edotco utilising this technology. The use of drones has expanded to sectors such as forestry, agriculture, ecology research and rangelands, primarily for field monitoring and data collection in both large plantations and small-scale farms.

“By leveraging drones as a platform for remote sensing, we are not only achieving higher resolution imagery but also ensuring cost-effectiveness compared with traditional methods. This underscores our commitment to equipping our farmers and industries with cutting-edge solutions to drive economic growth and environmental stewardship,” says Chang.

The integration of drone technology presents not only opportunities for automation but also challenges such as airspace management, potential impacts on traditional aviation, and concerns about job displacement in industries where drones replace manual tasks.

“As we embrace the widespread adoption of drone technology, we must also recognise the imperative to address the challenges that come with the integration. For example, in agriculture, if drones take over some tasks, it could affect traditional farming jobs. It is upon us to proactively engage with stakeholders, foster dialogue and invest in reskilling and upskilling initiatives to ensure that our working workforce remains agile and resilient in the face of technological advancement,” Chang explains.

The regulatory landscape for drones involves considerations related to safety, security, privacy and airspace management, among others. Industries adopting drone technology may face initial challenges in adapting to and complying with evolving regulations, potentially leading to increased compliance costs.

This also includes privacy concerns, especially with drones equipped with cameras. Industries that might be negatively impacted include residential areas, where the use of drones for surveillance could lead to privacy issues.

As far as the industry players are concerned, regulation harmonisation and standardisation globally can benefit them in terms of expanding their services and solutions.

Cognisant to the complexity of regulation mismatch, the effort for drone regulation harmonisation and standardisation has already been initiated and put in place within Southeast Asia and civil aviation authority members around the world.

Chang says early intervention and facilitation to ease regulation harmonisation is pertinent for industry growth. The way towards this is possible via collaboration and synergies between multiple parties and stakeholders.

“For example, from Aug 21 to 25 last year, together with industry partner, Pen Aviation, MRANTI hosted members of Joint Authorities for Rulemaking on Unmanned Systems (JARUS), which comprises civil aviation authorities from Australia, the UK, Thailand, China and Malaysia, to discuss the aspect of special operation risk assessments and harmonisation of regulation in various jurisdictions.”

This is done via various means such as assessment of civil aviation authorities to examine regulatory framework, personnel qualifications, training programmes and overall safety systems, and also categorisation of compliance for each country that shows compliance with international safety standards or otherwise.

In Budget 2024, RM76 million was allocated to enhance the research, development, commercialisation and innovation ecosystem. An additional RM10 million will support the drone and robotics sector under MRANTI.

MRANTI has charted an ambitious course with the MDTAP30. This comprehensive roadmap is designed to not only spur the growth of the drone tech industry but also to ensure the responsible and efficient use of drones within the country.

Beyond industry-specific missions, MRANTI is also committed to leveraging drone technology to support security and rescue forces during emergencies and disasters. Pasukan Tindakan Kecemasan Khas Drone led by MRANTI as the coordinating agency provides assistance to flood victims through the cooperation of local authorities as well as industry and selected drone players.

The adoption of drone technology in agriculture benefits greatly from policies and regulations that emphasise safety, innovation and sustainability. These policies have evolved to not only ensure the safe operation of drones — through licensing and operational restrictions — but also to enhance productivity and environmental sustainability in the sector.

Chang notes that governments worldwide have introduced measures such as subsidies, tax breaks and research funding to encourage drone use in agriculture. This includes developing new technologies and integrating drones with precision agriculture systems.

“Supportive policies, international collaboration on standards and partnerships between agencies maximise the benefits of drone technology, addressing food security and promoting sustainable practices,” says Chang, adding that such collaborations help align regulatory frameworks with privacy, security and environmental concerns.

Investments in R&D improve drone capabilities, while collaborative governmental efforts enhance the technology’s adoption and effectiveness in agriculture. Training and capacity-building initiatives provide essential support to stakeholders, ensuring the technology’s integration into agricultural practices promotes economic prosperity and sustainability.

“By fostering an ecosystem of innovation and support for technology companies, we can accelerate the adoption of advanced technologies in agriculture,” Chang concludes.