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Market Overview – Malaysia

May 2020

Market snapshot

In 2018, Malaysia recorded a population of 31.5 million. 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. Thus 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 imports of that product from the world. 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 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 2018 bananas is Malaysia's principle crop with production amounting to 98.4 million metric tonnes (MMT), production has been steadily increasing since 2014.

Palm oil and pineapples saw the greatest CAGR increase, 10.3% and 5.6% respectively from 2014 to 2018.

In terms of meat production, chicken had the largest CAGR at 5.7% while pig recorded a 4.3% increase and duck decreased at a CAGR of −16.3% (2014 to 2018).

Crop production in Malaysia, 2014 to 2018 , measured in million metric tons
Top ten crops 2014 2015 2016 2017 2018 CAGR* % 2014-2018
Bananas 95.4 98.3 86.3 101.7 98.4 0.8
Coconuts 19.7 20.0 17.3 19.9 19.5 −0.2
Oil palm fruit 4.9 4.9 4.2 5.0 4.8 −0.5
Oil, palm 1.8 2.7 2.7 2.9 2.7 10.3
Oilseeds n.e.s.[1] 0.5 0.6 0.6 0.6 0.6 1.7
Palm kernels 0.6 0.5 0.5 0.5 0.5 −3.4
Pineapples 0.3 0.3 0.3 0.4 0.4 5.6
Rice, paddy 0.3 0.5 0.4 0.3 0.3 −0.5
Vegetables, fresh n.e.s.[1] 0.2 0.2 0.2 0.2 0.2 2.0
Watermelons 0.2 0.2 0.2 0.2 0.2 1.2

Source: FAOSTAT, 2020

*CAGR: Compound Annual Growth Rate

1: not elsewhere specified

Meat production in Malaysia, 2014 to 2018, measured in million metric tons
Top three meats 2014 2015 2016 2017 2018 CAGR* % 2014-2018
Meat, chicken 1.4 1.5 1.7 1.6 1.8 5.7
Meat, pig 0.2 0.1 0.1 0.1 0.2 4.3
Meat, duck 0.2 0.2 0.2 0.2 0.1 −16.3

Source: FAOSTAT, 2020

*CAGR: Compound Annual Growth Rate

Livestock production in Malaysia, 2014 to 2018
Livestock (head, million) 2014 2015 2016 2017 2018 CAGR* % 2014-2018
Chicken 799.7 760.0 830.0 820.0 875.8 2.3
Pig 1.5 1.6 1.5 1.5 1.5 −1.1
Cattle 0.1 0.2 0.1 0.1 0.1 0.3

Source: FAOSTAT, 2020

*CAGR: Compound Annual Growth Rate

Trade

In 2019, Malaysia's total agri-food and seafood imports from the world were valued at US$16.3 billion, 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. Thus Canada has US$26.0 million trade deficit with Malaysia in 2019.

Canada's gross export gap to Malaysia in agri-food and seafood, in US$ millions
Import supplier 2015 2016 2017 2018 2019 CAGR* % 2015-2019
Malaysia's imports from the world 15,802.2 14,906.9 15,671.6 16,559.3 16,275.8 0.7
Malaysia's imports from Canada 187.7 205.2 219.0 209.1 148.9 −5.6
Gross export gap with Canada 15,614.5 14,701.7 15,452.6 16,350.2 16,126.9 0.8

Source: Global Trade Tracker, 2020

*CAGR: Compound Annual Growth Rate

Malaysia's agri-food and seafood imports from Canada declined at a CAGR of −5.6% from 2015 to 2019, to reach US$148.9 million in 2019. Malaysia's top imported products from Canada in 2019 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 imports of that product from the world. Canadian canola seeds accounted for 25.9% 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, 2015-2019
HS 6 Code Description 2015 2016 2017 2018 2019 CAGR* % 2015-2019 Canada's share % in world 2019
Total - Canada 187.7 205.2 219.0 209.1 148.9 −5.6 0.9
100199 Wheat and meslin (excluding seed for sowing, and durum wheat) 31.5 46.9 54.5 55.3 45.1 9.4 15.5
151411 Low erucic acid rape or colza oil <2%, crude 25.0 55.2 32.0 40.4 22.3 −2.9 65.1
120190 Soya beans (excluding seed for sowing) 34.5 38.8 39.0 31.0 19.9 −12.8 12.9
120110 Soya bean seed, for sowing 36.6 31.8 37.4 31.7 15.7 −19.1 9.9
430110 Raw furskins of mink 0.8 2.3 2.7 2.3 8.3 81.6 19.4
040210 Solid milk and cream , <= 1.5% 0.1 0.0 9.6 4.8 5.3 212.8 1.8
100191 Seed of wheat and meslin, for sowing (excluding durum) 4.5 1.6 0.9 2.0 4.4 −0.5 22.0
120510 Low erucic acid rape or colza seeds < 2% , < 30 micromoles/g 0.0 0.0 0.5 2.5 4.0 183.5 25.9
210690 Food preparations, n.e.s.[1] 4.6 3.3 2.2 2.2 2.5 −14.0 0.4
071340 Dried, shelled lentils 0.8 0.6 0.7 1.3 1.3 15.4 20.5

Source: Global Trade Tracker, 2020

*CAGR: Compound Annual Growth Rate

1: not elsewhere specified

Retail sales

Total sales of packaged food, in Malaysia, increased by a CAGR of 4.5% over the period of 2015 to 2019, and are expected to remain steady through to 2024.

Fish and seafood, dairy and soy food and meat were the top three recorded packaged food retail sales at US$ 3.1 billion, US$1.9 billion and US$1.9 billion respectively. Meat substitutes had the largest CAGR gain 6.7% for the period of 2015 to 2019.

Bakery and cereals were valued at US$1.1 billion for the 2019 packaged food retail sales, increasing from US$0.9 billion over the previous year, while beans and pulses sales increased by 3.6% from 2015 to US$246.3 million in 2019.

Packaged food retail sales in Malaysia, in US$ millions, historic and forecast
Category 2015 2019 CAGR* % 2015-2019 2020 2024 CAGR* % 2020-2024
Fish and seafood 2,482.5 3,104.2 5.7 3,302.6 4,119.1 5.7
Dairy and soy food 1,659.6 1,927.9 3.8 2,000.3 2,438.8 5.1
Meat 1,680.8 1,919.6 3.4 1,982.1 2,233.2 3
Other dried food 1,087.6 1,318.6 4.9 1,378.9 1,617.5 4.1
Bakery and cereals 926.0 1,070.0 3.7 1,107.3 1,273.8 3.6
Seasonings, dressings and sauces 388.1 462.6 4.5 485.9 585.4 4.8
Pasta and noodles 303.4 383.9 6.1 404.8 492.3 5
Confectionery 266.1 307.2 3.7 318.0 364.8 3.5
Beans and pulses 213.8 246.3 3.6 256.3 297.6 3.8
Ice cream 157.7 202.3 6.4 216.6 277.3 6.4
Savory snacks 154.2 190.5 5.4 200.6 246.2 5.3
Oils and fats 154.2 169.2 2.4 173.4 190.8 2.4
Other frozen food 50.7 58.0 3.4 60.7 69.3 3.4
Other canned food 42.5 51.3 4.8 53.9 65.4 5
Syrups and spreads 40.9 46.1 3 47.3 52.9 2.8
Prepared meals 27.3 32.0 4.1 33.5 39.7 4.4
Soups 13.0 13.8 1.5 14.1 15.1 1.7
Savory and deli foods 9.7 11.0 3.2 11.4 13.0 3.4
Meat substitutes 8.3 10.7 6.7 11.4 14.7 6.5
Total 9,666.3 11,525.1 4.5 12,058.9 14,406.9 4.5

Source: GlobalData,2020

*CAGR: Compound Annual Growth Rate

Health and wellness food products

Total retail sales in the health and wellness 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.

The naturally healthy food products represented the largest category with retail sales valued at US$560.1 million in 2019 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 2014 2018 CAGR* % 2014-2018 2019 2023 CAGR* % 2019-2023
Food intolerance 134.7 162.2 4.8 167.3 198.6 4.4
Food minus 249.2 309.2 5.5 323.6 393.2 5.0
Free from 281.6 341.5 4.9 353.9 411.8 3.9
Functional and fortified 67.5 83.1 5.3 87.7 111.2 6.1
Naturally healthy 532.7 560.1 1.3 568.9 509.5 −2.7
Organic 28.8 32.8 3.4 33.6 38.0 3.1
Total 1,294.50 1,488.90 3.6 1,535.00 1,662.30 2.0

Source: GlobalData, 2020

*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.

For more information

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.

For additional intelligence on this and other markets, the complete library of Global Analysis reports can be accessed through the International agri-food market intelligence page.

Resources

Market Overview – Malaysia
Global Analysis Report

Prepared by: Zhiduo,Wang

© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2020).

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