Note: This report includes forecasting data that is based on baseline historical data.
Market snapshot
As of 1 January 2021, the population of Malaysia was estimated to be 32,645,919 people. This is an increase of 1.51 % (486,888 people) compared to population of 32,159,031 the year before.
Malaysia's gross domestic product (GDP) was US$358.6 billion in 2018. The GDP per capita was US$11,373.2, in 2018.
Malaysia's total agri-food and seafood imports from the world were valued at US$16.3 billion in 2019, of which US$148.9 million was from Canada, representing 0.9% of Malaysia's total agricultural imports.
Canada imported US$177.1 million in agri-food and seafood imports from Malaysia, while Canada's exports were valued at US$151.1 million in 2019. As such, Canada has US$26.0 million trade deficit with Malaysia in 2019.
In 2019, Malaysia's top imported products from Canada were wheat and meslin (US$45.1 million), followed by low erucic acid rape or colza oil (US$22.3 million) and soya beans (US$19.9 million). Canada's canola oil accounted for 65.1% of Malaysia's total global imports.. Canadian canola seeds accounted for 25.9% of Malaysia's total imports from the world.
Total sales of packaged food in Malaysia increased by a Compound Annual Growth Rate (CAGR) of 4.5% over the period of 2015 to 2019, and are expected to remain steady through to 2024.
Total retail sales in the health and wellness sector grew by a CAGR of 3.6% for the period 2014 to 2018, and are expected to grow by a CAGR of 2.0% between 2019 and 2023.)
Production
In 2019 oil palm fruit was Malaysia's top crop, with production of 98.1 million tonnes. Production has been steadily increasing at a CAGR of 0.2% from 2015 to 2019.
Paddy rice (rice milled equivalent) saw the greatest CAGR increase: 12.3% from 2015 to 2019. In particular, the production almost doubled from 1.7 million tonnes in 2018 to 2.9 million tonnes in 2019.
Top ten crops | 2015 | 2016 | 2017 | 2018 | 2019 | CAGR* % 2015-2019 |
---|---|---|---|---|---|---|
Oil palm fruit | 98,344,073 | 86,325,309 | 101,740,900 | 98,419,438 | 99,065,364 | 0.2 |
Rice, paddy (rice milled equivalent) | 1,828,516 | 1,827,317 | 1,714,532 | 1,760,348 | 2,912,203 | 12.3 |
Rice, paddy | 2,741,404 | 2,739,606 | 2,570,513 | 2,639,202 | 1,942,439 | −8.3 |
Vegetables, fresh, not elsewhere specified | 578,628 | 615,727 | 644,557 | 673,386 | 702,215 | 5.0 |
Rubber, natural | 722,122 | 673,513 | 740,138 | 603,329 | 639,830 | −3.0 |
Coconuts | 505,614 | 504,773 | 517,589 | 495,531 | 536,606 | 1.5 |
Bananas | 315,500 | 309,508 | 350,493 | 330,957 | 322,732 | 0.6 |
Pineapples | 452,021 | 391,714 | 340,722 | 322,460 | 299,912 | −9.7 |
Oilseeds, not elsewhere specified | 191,697 | 194,199 | 197,994 | 201,789 | 205,583 | 1.8 |
Tomatoes | 165,177 | 242,946 | 188,185 | 199,422 | 176,505 | −10.7 |
Source: FAOSTAT, 2021 *CAGR: Compound Annual Growth Rate |
In terms of domestic meat production, chicken with a 1.7 million of production in 2019, had the largest CAGR at 2.2% while pig recorded a 0.3% increase and duck decreased at a CAGR of −13.4% (2015 to 2019).
Top three meats | 2015 | 2016 | 2017 | 2018 | 2019 | CAGR* % 2015-2019 |
---|---|---|---|---|---|---|
Meat, chicken | 1,511,442 | 1,676,246 | 1,598,258 | 1,587,539 | 1,648,036 | 2.2 |
Meat, pig | 222,598 | 195,176 | 218,177 | 223,862 | 225,378 | 0.3 |
Meat, duck | 121,966 | 78,985 | 66,594 | 66,147 | 68,668 | −13.4 |
Source: FAOSTAT, 2021 *CAGR: Compound Annual Growth Rate |
Livestock (head, million) | 2015 | 2016 | 2017 | 2018 | 2019 | CAGR* % 2015-2019 |
---|---|---|---|---|---|---|
Chicken | 286.62 | 289.67 | 293.30 | 260.83 | 275.80 | −1.0 |
Duck | 9.90 | 9.63 | 9.28 | 9.68 | 10.52 | 1.5 |
Pigs | 1.89 | 1.65 | 1.85 | 1.97 | 1.95 | 0.9 |
Cattle | 0.74 | 0.74 | 0.70 | 0.68 | 0.68 | −2.0 |
Goats | 0.43 | 0.42 | 0.39 | 0.36 | 0.37 | −3.7 |
Source: FAOSTAT, 2021 *CAGR:Compound Annual Growth Rate
|
Trade
In 2020, Malaysia's total agri-food and seafood imports from the world were valued at US$17.2 billion, of which US$165.5 million was from Canada, representing 0.96% of Malaysia's total agricultural imports.
Canada imported US$185.1 million in agri-food and seafood imports from Malaysia, while Canada's exports were valued at US$165.5 million in 2020, resulting in Canada having a US$9.6 million trade deficit with Malaysia in 2020.
Import supplier | 2016 | 2017 | 2018 | 2019 | 2020 | CAGR* % 2016-2020 |
---|---|---|---|---|---|---|
Malaysia's imports from the world | 14,906.9 | 15,671.6 | 16,559.3 | 16,275.8 | 17,232.5 | 3.7 |
Malaysia's imports from Canada | 205.2 | 219.0 | 209.1 | 148.9 | 165.5 | −5.2 |
Gross export gap with Canada | 14701.7 | 15452.6 | 16350.2 | 16126.9 | 17067.0 | 3.0 |
Source: Global Trade Tracker, 2021 *CAGR: Compound Annual Growth Rate |
Malaysia's agri-food and seafood imports from Canada declined at a CAGR of −5.2% from 2016 to 2020, to reach US$165.5 million in 2020. Malaysia's top imported products from Canada in 2020 were wheat and meslin (US$46.7 million), followed by low erucic acid rape or colza oil (US$29.2 million) and soya beans (US$18.8 million). Canada's canola oil accounted for 65.0% of Malaysia's total global imports. Canadian canola seeds accounted for 51.4% of Malaysia's total imports from the world.
HS 6 Code | Description | 2016 | 2017 | 2018 | 2019 | 2020 | CAGR* % 2016-2020 | Canada's share % in world 2020 |
---|---|---|---|---|---|---|---|---|
Total - Canada | 205.2 | 219 | 209.1 | 148.9 | 165.5 | −5.2 | 1.0 | |
100199 | Wheat and meslin (excludes seed for sowing, and durum wheat) | 46.9 | 54.5 | 55.3 | 45.1 | 46.7 | −0.1 | 16.4 |
151411 | Low erucic acid rape or colza oil <2%, crude | 55.2 | 32 | 40.4 | 22.3 | 29.2 | −14.7 | 65.0 |
120190 | Soya beans (excludes seed for sowing) | 38.8 | 39 | 31 | 19.9 | 18.8 | −16.5 | 11.5 |
120110 | Soya bean seed, for sowing | 31.8 | 37.4 | 31.7 | 15.7 | 17.6 | −13.8 | 12.3 |
120510 | Low erucic acid rape or colza seeds < 2% , < 30 micromoles/g | 0 | 0.5 | 2.5 | 4 | 11.2 | 181.9 | 51.4 |
151800 | Animal or vegetable fats and oils and their fractions | 0 | 0 | 0 | 0 | 8.9 | 2.7 | |
110311 | Groats and meal of wheat | 0 | 4.7 | 8.1 | 0 | 3.5 | −9 | 6.0 |
100191 | Seed of wheat and meslin, for sowing (excludes durum) | 1.6 | 0.9 | 2 | 4.4 | 3.1 | 18.4 | 13.8 |
210690 | food preparations, not elsewhere specified | 3.3 | 2.2 | 2.2 | 2.5 | 2.8 | −4.6 | 0.4 |
200893 | Cranberries | 0.1 | 0.8 | 1 | 1.3 | 2.7 | 132.4 | 17.1 |
Source: Global Trade Tracker, 2021 *CAGR: Compound Annual Growth Rate |
Retail sales
Total sales of packaged food, in Malaysia increased by a CAGR of 5.4% over the period of 2016 to 2020 and are expected to drop to 4.4% through to 2024.
Rice, Pasta and Noodles, Dairy and Processed Meat and Seafood were the top three recorded packaged food retail sales at US$2.3 billion, US$1.1 billion and US$0.66 billion respectively. Rice, pasta and noodles had the largest CAGR gain 7.3% for the period of 2016 to 2020.
Category | 2016 | 2020 | CAGR* % 2016-2020 | 2021 | 2025 | *CAGR % 2021-2025 |
---|---|---|---|---|---|---|
Rice, Pasta and Noodles | 1,756.7 | 2,327.2 | 7.3 | 2,448.6 | 2,952.6 | 4.8 |
Dairy | 910.1 | 1,092.4 | 4.7 | 1,133.8 | 1,390.6 | 5.2 |
Processed Meat and Seafood | 554.5 | 655.7 | 4.3 | 676.0 | 760.5 | 3.0 |
Baby Food | 507.4 | 583.1 | 3.5 | 583.1 | 643.7 | 2.5 |
Baked Goods | 483.6 | 572.0 | 4.3 | 595.0 | 702.9 | 4.3 |
Edible Oils | 383.1 | 504.7 | 7.1 | 522.5 | 596.5 | 3.4 |
Confectionery | 402.9 | 453.6 | 3.0 | 468.3 | 548.6 | 4.0 |
Sauces, Dressings and Condiments | 322.6 | 404.4 | 5.8 | 423.1 | 516.1 | 5.1 |
Savoury Snacks | 302.6 | 359.8 | 4.4 | 372.2 | 447.8 | 4.7 |
Ice Cream and Frozen Desserts | 222.8 | 265.7 | 4.5 | 275.8 | 340.8 | 5.4 |
Sweet Biscuits, Snack Bars and Fruit Snacks | 199.8 | 263.9 | 7.2 | 275.4 | 343.0 | 5.6 |
Breakfast Cereals | 71.9 | 85.7 | 4.5 | 88.1 | 99.5 | 3.1 |
Processed Fruit and Vegetables | 63.5 | 72.1 | 3.2 | 74.3 | 83.5 | 3.0 |
Sweet Spreads | 46.1 | 55.7 | 4.8 | 58.1 | 66.7 | 3.5 |
Ready Meals | 30.2 | 37.5 | 5.6 | 38.7 | 43.4 | 2.9 |
Soup | 15.1 | 17.2 | 3.3 | 17.8 | 20.4 | 3.5 |
Packaged Food Total | 6,272.9 | 7,750.7 | 5.4 | 8,050.8 | 9,556.6 | 4.4 |
Source: Euromonitor,2021 *CAGR: Compound Annual Growth Rate |
Health and wellness food products
Total retail sales in the health and wellness sector grew by a CAGR of 3.6% for the period 2016 to 2020, and are expected to grow by a CAGR of 4.8% between 2021 and 2025.
The "Fortified/Functional" represented the largest category with retail sales valued at US$1.97 billion in 2020 and are expected to remain the largest category in the forecast period.
Category | 2016 | 2020 | CAGR* % 2016-2020 | 2021 | 2025 | *CAGR % 2021-2025 |
---|---|---|---|---|---|---|
Better For You (BFY) | 59.6 | 93.3 | 11.9 | 96.8 | 116.8 | 4.8 |
Fortified/Functional (FF) | 1,764.3 | 1,973.2 | 2.8 | 2,045.0 | 2,483.9 | 5.0 |
Free From | 187.7 | 233.6 | 5.6 | 242.3 | 284.8 | 4.1 |
Naturally Healthy (NH) | 297.9 | 363.6 | 5.1 | 377.6 | 469.2 | 5.6 |
Organic | 2.3 | 2.5 | 2.1 | 2.5 | 2.4 | −1.0 |
Total | 2,311.8 | 2,666.2 | 3.6 | 2,764.2 | 3,357.1 | 5.0 |
Source: Euromonitor, 2021 *CAGR: Compound Annual Growth Rate |
Opportunities for Canada
On March 8, 2018, Canada signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with 10 countries: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. CPTPP represents a significant step toward closer trade and investment between Canada and Malaysia. Significant gains are possible for Canadian producers, who could gain market share in economies such as Malaysia. The CPTPP provides Canada with greater market access to CPTPP countries with the same level of tariff as major regional competitors like Australia and New Zealand for key sectors, including beef, pork, seafood, cereal and many others. For information on CPTPP, please read the link: CPTPP and Canada's agriculture and agri-food sector.
The CPTPP Agreement, along with NAFTA and free trade agreements with the European Union (CETA) and South Korea (CKFTA), will make Canada the only G7 nation with free trade access to the Americas, Europe and the Asia-Pacific region. All Canadian provinces and territories are expected to benefit from the CPTPP.
While Malaysia has signed the CPTPP, it has not yet ratified the Agreement, meaning that its provisions do not currently apply to Canada - Malaysia trade.
In the context of the Covid-19 pandemic, the ratification of the CPTPP can contribute to Malaysia's recovery in a number of ways.
First, through supporting the economic recovery by stimulating trade and investment, since ratification of the CPTPP is one of the few levers available to stimulate growth without creating additional fiscal pressure.
Second, by enhancing Malaysia's competitiveness in regional and global value chains, at a time when many firms are restructuring their supply chains to be more resilient against future shocks. And third, by accelerating digitalization of industry in Malaysia through transition to 4IR, which will be an essential component of the "new normal" in the wake of the pandemic..
Chief executive officer Tricia Yeoh of The Institute for Democracy and Economic Affairs (IDEAS: a Malaysian libertarian think tank) said as Malaysia grapples with economic recovery and the long term challenge of enhancing economic competitiveness, ratification of the CPTPP is a quick win.
"Malaysia's negotiators struck a good deal, which can now be ratified and implemented. Furthermore, as the CPTPP continues to grow it will only become more important that Malaysia is part of the deal," she said.(Malaysia Investment Authority, 2020).
For more information
The Canadian Trade Commissioner Service:
International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.
More agri-food market intelligence:
International agri-food market intelligence
Discover global agriculture and food opportunities, the complete library of Global Analysis reports, market trends and forecasts, and information on Canada's free trade agreements.
Agri-food market intelligence service
Canadian agri-food and seafood businesses can take advantage of a customized service of reports and analysis, and join our email subscription service to have the latest reports delivered directly to their inbox.
More on Canada's agriculture and agri-food sectors:
Canada's agriculture sectors
Information on the agriculture industry by sector. Data on international markets. Initiatives to support awareness of the industry in Canada. How the department engages with the industry.
Resources
- Countrymeters (January, 2021), accessed on May 3, 2021
- Euromonitor (2021)
- Investment in Malaysia Authority: "Ratification of CPTPP can help Malaysia be more competitive" (October, 2020)
- Trade Economics – Malaysia (2018)
- FAOSTAT (2020). Agricultural Production – Malaysia
- Global Trade Tracker (2021)
Market Overview – Malaysia
Global Analysis Report
Prepared by: Zhiduo Wang and Jason Moors
© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2022).
Photo credits
All photographs reproduced in this publication are used by permission of the rights holders.
All images, unless otherwise noted, are copyright Her Majesty the Queen in Right of Canada.
To join our distribution list or to suggest additional report topics or markets, please contact:
Agriculture and Agri-Food Canada, Global Analysis1341 Baseline Rd, Tower 5, 3rd floor
Ottawa ON K1A 0C5
Canada
Email: aafc.mas-sam.aac@agr.gc.ca
The Government of Canada has prepared this report based on primary and secondary sources of information. Although every effort has been made to ensure that the information is accurate, Agriculture and Agri-Food Canada (AAFC) assumes no liability for any actions taken based on the information contained herein.
Reproduction or redistribution of this document, in whole or in part, must include acknowledgement of agriculture and agri-food Canada as the owner of the copyright in the document, through a reference citing AAFC, the title of the document and the year. Where the reproduction or redistribution includes data from this document, it must also include an acknowledgement of the specific data source(s), as noted in this document.
Agriculture and Agri-Food Canada provides this document and other report services to agriculture and food industry clients free of charge.