Market Overview – Malaysia

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.

Crop production in Malaysia, 2015 to 2019, measured in tonnes
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).

Meat production in Malaysia, 2015 to 2019, measured in tonnes
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 production in Malaysia, 2015 to 2019
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.

Canada's gross export gap to Malaysia in agri-food and seafood, in US$ millions
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.

Malaysia's top 10 agri-food and seafood imports from Canada, in US$ millions, and Canada's share, 2016-2020
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.

Packaged food retail sales in Malaysia, in US$ millions, historic and forecast
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.

Health and wellness food product retail sales in Malaysia, historic and forecast in US$ millions
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

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 Analysis
1341 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.