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Malaysia ratified the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP) on Friday, September 30, 2022, becoming the ninth out of eleven countries to ratify the agreement.

Post adjusts the Marketing Year (MY) 2021/22 palm oil production forecast down to 18.2 million metric tons (MT), due to ongoing labor shortages. The MY2021/22 palm oil export estimate is revised to 16 million MT, a drop of 500,000 MT due to the estimated drop in production and resumption of Indonesian palm oil exports. Palm oil prices continue to fall as key buyers, India and China, prefer soybean oil to palm oil.

Malaysia was the 25th largest export destination for U.S. agricultural products in 2021 and is a top prospect for exports of food and beverage ingredients because of its large and growing food processing industry. Food and beverages manufactured in Malaysia not only serve domestic consumers but are also exported to many neighboring countries. U.S. exporters of dairy products, fresh and processed potatoes, food-grade soy, processed fruit and juices, tree nuts and more have many opportunities to supply Malaysian industry which depends on imports for key ingredients and inputs, and in doing so will reach consumers across Malaysia and throughout Southeast Asia.

According to the Department of Statistics, Malaysia’s food and beverage sales contributed 11.8 percent ($1.7 billion) to total wholesale sales value of $14 billion for January-April 2022, with a growth of 11.5 percent over the same period last year. The country’s food retailers continue to rapidly develop, and premium grocery stores and convenience outlets are increasingly popular.

Post forecasts consumption of cotton in the Malaysian textile industry at 290,000 bales in marketing year (MY) 2022/23, a 3.3 percent drop from the previous year post’s estimate. The expected reduction is based on textile companies shifting their operation to other South-East Asian countries as the cost of labor increased in Malaysia with the revision of new minimum wages on April 1, 2022.

Effective June 1, 2022, Malaysia intends to ban export of poultry products to ensure sufficient domestic supply. This is the latest in a series of measures taken to try to combat rising food prices in the country.

Post forecasts consumption of cotton in the Malaysian textile industry at 290,000 bales in marketing year (MY) 2022/23, a 3.3 percent drop from the previous year post’s estimate.

Post forecasts Malaysian crude palm oil (CPO) production in marketing year (MY) 2021/22 at 18.5 million metric tons (MT), an increase of 646,000 MT compared to the previous year. This increase is lower than the USDA official estimate due to the...

Post forecasts that consumption of corn and wheat in Malaysia will marginally increase in Marketing Year (MY) 2022/23, assuming an eventual stabilization of commodity prices following the disruption caused by the crisis in Ukraine.

The Malaysian food manufacturing and processing industry is an important component of the country’s economic recovery and growth.

The Malaysian food processing industry has been identified as a crucial component of future national economic recovery and growth resulting from the significant disruption of COVID-19 pandemic.

The Malaysia food retail sector was estimated at $18 billion in 2020, and is projected to grow 30 percent to $23 billion by 2025.