Agriculture sector is an important sector of Malaysia’s economy. There are mainly 3 crops are produced including palm oil, rubber and cocoa. Additionally, country’s farmers produce a number of fruits & vegetables for the domestic market such as bananas, pineapples, coconuts, durian, cabbage, cucumber, long beans, tomato, chilli, okra, spinach, rice, rambutan and others. Country’s tropical climate is extremely favorable for the production of a variety of exotic fruits & vegetables. Rice is the staple food in the everyday diet of Malaysian citizens and it is a symbol of traditional Malay culture. However, production of rice does not satisfy the country’s requirements, and Malaysia imports rice from neighboring countries like Vietnam and Thailand.
Malaysia is the world’s second major palm oil producer & exporter after Indonesia country. Country’s palm oil companies have big presence in Indonesia and have invested in palm oil refineries in leading markets such as India, China, Europe, and the United States. Many of largest & most successful companies are palm oil agricultural estate enterprises where the state holds a tenure share. The US has been a major importer of Malaysian palm oil. Country’s palm oil industry representatives are highly critical of U.S. interests & policies. In addition, several key US products are responsible for the new record, including processed vegetables, soybeans, processed fruit, tree nuts, and prepared foods.
According to study, “Malaysia Agriculture Market Trends, Statistics, Growth, and Forecasts” key companies operating in the Malaysia agriculture market are DBE Gurney Resources Berhad, Rhone Ma Holdings Berhad, Leong Hup International Berhad, QL Resources Berhad, Teo Seng Capital Berhad, Bahvest Resources Berhad, Lay Hong Berhad, CAB Cakaran Corporation Berhad, TPC Plus Berhad and PWF Consolidated Berhad.
The Malaysia agriculture market is driven by increase in consumption of rice, followed by increase in government initiatives and rise in demand of timber for building, furniture and construction. However, high feed prices, shortages of arable land, and a lack of quality breeds may impact the market.
Malaysia has been following a self-sufficiency level (SSL) policy in the fruit & vegetables for several years. The key agencies for this policy and for development of the sub-sector are the Ministry of Agriculture and Agro-based Industry (MOA) and its Department of Agriculture (DoA), Image result for FAMA in Malaysia, the Federal Agricultural Marketing Authority (FAMA) that monitors, coordinates and develops the product marketing while also purchasing the harvested fruits, Board of Farmers Organization, the Malaysian Agriculture Research & Development Institute (MARDI), and the Malaysian Pineapple Industry Board (MPIB). The state Agrobank is also a leading source of financing for the largely small & medium sized farms in the business.
The impact of climate change is likely to be an increasingly pressing subject for the sector. It is estimated that future of the Malaysia agriculture market will be bright on account of increase in application of new technologies & methods along with growth in development of rural infrastructure during the forecast period. Malaysia country’s efforts to achieve the self-sufficiency, establish a greater food security and its investment in technologies have put it on firm footing for the future growth.
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Ankur Gupta, Head Marketing & Communications