food industries in world

7/29/2019 Food Industries in world

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Ideal Prospects,

Immense OpportunitiesMalaysian culture has grown from a potpourri of ethnic

mixes derived from some of the worlds oldest

civilizations. This fusion has created a rich diverse

society that gives a unique essence in everything

Malaysians do. Malaysia is a lush tropical land full ofnatural resources that adds flavour and variety to the

research, cultivation and processing of foods. Thus,

Malaysia is poised to become one of the leading Asian

countries in food production and processing.

With a deep-rooted tradition to excel, Malaysia is

committed to develop the countrys food industry for

import substitution and export. Malaysias commitment

is her promise to your success.

You dont just invest in Malaysia. You acquire a long-

term profitable partnership from Malaysia.


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1 Food Industries

The food-processing sector accounts for about 10% of

Malaysias manufacturing output. Processed foods are exported

to more than 150 countries, with an annual export value of more

than RM 8 billion (USD 2.2 billion) which amounts to more than

half of the total food exports of over RM 14 billion.

Although the export performance of this sector has doubled over

the last ten years, Malaysia continues to be a net importer of

food products with annual import of more than RM 28 billion

(USD 7.9 billion).

Advances in processing technology have widened the usage of

local raw materials, expanding the range of products and

increasing the investment absorbing capacity in the food

industry.

Livestock and Dairy: Poultry

processing constitutes 60% of

the meat processing industry.

Although Malaysia is a net

exporter of poultry meat, it is still

a net importer of meat products,particularly beef and mutton.

Amon g the dairy pro ducts

produced are mi lk powder,

sweetened condensed milk,

pasteurised or sterilized liquid

milk, ice cream, yoghurt and

other fermented milk. Except for

the production of pasteurised

milk, the dairy product industry is

dependent on imports.

Fisheries: An export-oriented sector, fish-processing

includes the processing of prawns, frozen products, canning

of fish and the production of surimi and surimi products.

Exports exceed RM 546 million (USD 153 million) per annum

of which frozen shrimps and prawns constitute more than

50 per cent of the total export value.

Cereal Products / Flour Based Products: The cereal

products sub-sector, including the production of biscuits,

bakery items and noodles, is well established in Malaysia.

Although this sub-sector is dependent on

imported raw materials, Malaysia is a

net exporter of cereal preparations

/ products, with a net export of

more than RM1,200 million (USD337 million) per annum.


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Food Industries 2

Pepper and pepper products:Malaysia is the worlds 5th largest

producer of pepper, exporting RM 172

million (USD 48.3 million). Value-added

pepper and pepper products include

specialty pepper and processed

pepper-based products such as spice

mixes and blends, seasonings and

flavourings.

Chocolate and Sugar Confectionaries:

Malaysia is the 5th largest cocoa grinding centre in

the world and the largest cocoa grinder in Asia.

Malaysia is a net exporter of cocoa products

including chocolates, exporting to more than 70

countries. Exports of intermediate products, i.e.

cocoa butter and cocoa cake/powder exceeds RM 2

billion (USD 560 million) per annum while exports of

chocolate and other food preparations containing

cocoa are valued at about RM 270 million (USD 75

million).

Fruits and Vegetables: A variety of fruits and vegetables

are produced for fresh consumption in the domestic and

export markets. The major activity in the downstream

processing of fruits is the canning of pineapple and pineapple

juice. Other fruits such as guava, passion fruit, jackfruit and

banana are also being processed into puree/juice, snacks,

pickles and jam. The processing of vegetables is confined to

the production of sauces and pickles.

Malaysia remains a net importer of processed fruits and

vegetables with net import amounting to RM 676 million (USD

190 million). The fruit and vegetable processing industry has

tremendous potential for import substitution and export

opportunities. Investors are encouraged to undertake the

commercial cultivation of fruits and vegetables.

Palm Oil-based Products: Malaysia is

the worlds largest exporter and the

second worlds largest producer of palm

oil in the world. Malaysia and Indonesiaaccount for more than 85 per cent of the

world palm oil output and about 93 per

cent of global exports of palm oil. Exports

of Malaysian oil palm products are valued

at about RM65 billion per annum. The

main products are RBD palm oil, RBD

palm olein and stearin, specialty fats such

as cocoa butter substitutes, margarine,

shortening and vanaspati. Further

development is seen in the production of

value-added palm oil-based specialty

products to cater to the health consciousand vegetarian consumers.


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Malaysias current population of 27.73 million is growing

steadily at an annual growth rate of about 2%. The country

has seen a steady increase in the standard of living and with

it, its purchasing power (per capita income exceed

RM27,000 or USD7,738). Lifestyle changes have led to an

increase in the demand for convenience food and health

foods.

Exports of processed food recorded a positive growth

indicating the increasing acceptance of Malaysias foodproducts in overseas market. This is contributed mainly by

products such as cocoa and cocoa preparations, prepared

cereals and flour preparations, processed seafood and dairy

products.

3 Food Industries

The same goes with ASEAN. With a population of over 570 million,

this huge market still has a vast potential waiting to be tapped.

Strategically located in the

heart of South-East Asia,

Malaysia stands to gain

from the growing demand.

With a majority Muslim population, Malaysia has a ready

domestic market for halal food. Recognised as a modern Muslim

nation, Malaysia is well positioned to be an international halal

food hub in the branding, processing and marketing of halal

foods to Muslim populations. This growing global market is

estimated at RM 560 billion (USD 150 billion) per year.

The Halal Industry Development Corporation Sdn Bhd (HDC)

certifies all halal food products. The government has introduced

MS1500 : 2004, Halal Food Certification which has incorporated

the GMP and hygienic sanitary requirements.

H A L A L


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Food Industries 4

In the livestock industry, the country is self-

sufficient in poultry. Poultry meat is a major raw

material for further processing. The production

from the fishery sector includes 85% from marine

catchments and 15% from aquaculture, with

shrimp and brackish-water fish making up the bulk

of the production. Malaysias cocoa grindingcapacity of more than 300,000 tonnes provides

raw materials for further downstream processing.

Fruits in commercial cultivation include papaya,

pineapple, watermelon, banana, starfruit, mango,

durian, rambutan, guava and some citrus fruits.

A steady supply of agricultural produce

for processing is ensured due to

Malaysias year long growing season.

Malaysia has taken concrete measures

to improve and increase agricultural

production and adopting a liberal policy

to allow the duty-free importation of raw

materials to enable the food industry to

meet specific market demand.

The initiatives to increase the agricultural

production include the high impact

projects as identified in the Ninth

Malaysia Plan namely, Aquaculture

Industrial Zone, New Agriculture

Integrated Development (consists of

National Feedlot Centre, Permanent

Food Park and Contract Farm) and

creation of 10,000 agro-based industry

entrepreneurs.

SELECTED AGRICULTURAL PRODUCTION, 2008 and 2010(Estimated annual production)

Source: Ministry of Agriculture and Agro-based Industry


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For the purpose of health certification, MOH is putting

continuous efforts in upgrading of laboratories in the

MOH and Department of Chemistry with

sophisticated and advanced instrumentation. In

addition, analytical results from private laboratoriesaccredited by the Department of Standards under the

"Malaysian Laboratories Accreditation Scheme"

(SAMM) are recognized by the MOH for the same

purpose.

Food manufacturers with quality assurance in

production, installation and servicing are awarded the

internationally recognized MS ISO 9001:2000

Certification of Quality Systems by SIRIM QAS

International Sdn. Bhd. SIRIM QAS, a wholly-owned

subsidiary of SIRIM Bhd., is a leading certification,

inspection and testing body in Malaysia. In addition,all manufacturers have to comply with the Food Act

(1983) and Food Regulations (1985).

The packaging sector and cold chain facilities in Malaysia

have grown to accommodate the rising requirements of the

food industry.

The packaging industry provides products ranging from

glass containers, cans, paper, plastic, biodegradable and

packaging. Existing policies allow manufacturers to import

duty-free direct packaging materials that are not available

locally.

Cold chain facilities are basically in place for

processed, frozen and chilled products. The

government is encouraging the development of

this supporting industry in tandem with the

growth of the chilled and frozen food sector.

Malaysias multi-structured network of road,

sea and air links facilitates the expedient and

cost-competitive delivery of food products.

Marketing support is provided by agencies

such as the Malaysia External TradeDevelopment Corporation (MATRADE) and

FAMA (Federal Agricultural Marketing Authority)

through their wide network of local and

international offices.

Food Industries 6

The services sector including logistics, has been

identified as an important source of growth for the

Malaysian economy and it is expected to assume

a greater role in broadening the economic base of

the country and in contributing towards greater

exports of goods and services.

To coordinate and spearhead the growth of this

services sector, the IMP3 had recommended the

establishment of the Malaysian Services

Development Council (MSDC) and the Malaysian

Logistic Council (MLC).


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7 Food Industries

The Malaysian Agricultural Research and Development Institute (MARDI)

focuses on genetic improvement and pest management using

biotechnology, post-harvest technology and mechanization. It is also

involved in the development of value-added products, with some of its

research projects ready for commercialisation.

The Malaysian Palm Oil Board (MPOB) also conducts R&D to enhance the

well-being of Malaysias palm oil industry. Many of the technologies and

products developed by MPOB have been commercialised, among them

red palm oil, healthful margarine and oil blends.

To achieve Malaysias vision of becoming a key centre for cocoa

processing in Asia, the Malaysian Cocoa Board (MCB) is continuously

intensifying its R&D programme for both the upstream and downstream

sectors particularly in widening the product-base of cocoa products. The

laboratory in the Downstream Research Centre of the MCB is accessible

to manufacturers for analytical support.

The Forest Research Institute of Malaysia (FRIM) is another major research

institution actively conducting research into the commercial cultivation of

herbs and medicinal plants. It provides research-based services for the

conservation, processing, management, development and utilisation of

these forest resources for commercialisation.

The Fisheries Research Institute (FRI) conducts

research in various fields including aquaculture,

aquatic ecology, fish diseases, fisheries products

and biotechnology.

Incentives For Investment

100% Tax Exemption for 10 years for the production of selected

food products;

Pioneer Status (PS)/Investment Tax Allowance (ITA);

PS/ITA for small-scale companies;

Additional 5 years reinvestment incentives for promoted food products; Reinvestment Allowance (RA) for 15 years;

Investment Tax Allowance of 100% for production ofhalal food;

Tax deductible expenses for halalquality and safety certifications;

PS/ITA for cold chain facilities and services;

Import duty exemption on raw materials, machinery and spare parts;

Incentives for R&D; and

Incentives for Training.


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Investment opportunities abound in the food-

processing sector. The three thrust areas are:

Health Food / Functional Food:

Malaysia is moving towards organic

farming. Besides organic products, health

foods include low caloric, fibre / nutrient

enriched products, fruit juices and herbal

products. New products using Malaysias

traditional herbs and resources are

continuously being developed for Asian

and global markets.

Convenience Food: The demand for

convenience foods that can be prepared

within minutes is a growing worldwide

trend. Locally made convenience foods

include frozen foods such as TV dinners,

spiced fish and chicken, traditional cuisine,

instant powdered juice and retort pouchproducts. Malaysia is also in an excellent

position to produce Asian recipes with

convenience food technologies to meet

the increasing global demand for specialty

and ethnic foods.

Food Ingredients: Food flavours and

seasonings, sweeteners and palm oil-

based additives are some of the products

that have vast potential for further

development to enhance Malaysias

presence in the developed markets in

USA, UK, Japan and Australia. The quality

of these products is backed by continuous

nutritional research.

Food Industries 8


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9 Food Industries

Ministry of International Trade

and Industry

Block 10, GovernmentOffices ComplexJalan Duta50622 Kuala Lumpur

Tel: 603 6203 3022Fax: 603 6201 2337E-mail: [email protected]: www.miti.gov.my

Malaysia External Trade

Development Corporation

Menara MATRADE, Jalan KhidmatUsaha, Off Jalan Duta50480 Kuala Lumpur

Tel: 603 6207 7077Fax: 603 6203 7037E-mail: [email protected]: www.matrade.gov.my

Small and Medium IndustriesDevelopment Corporation

Aras 20, West Wing, MenaraMATRADE, Jalan Khidmat UsahaOff Jalan Duta50480 Kuala Lumpur

Tel: 603 6207 6000Fax: 603 6201 6564E-mail: [email protected]: www.smidec.gov.my

Ministry of Agriculture &

Agro-Based Industry

Wisma TaniNo.28 Persiaran Perdana, Precint 4Federal Government

Administration Centre62624 Putrajaya

Tel: 603 8870 1000Fax: 603 8888 6020E-mail: [email protected]: www.moa.gov.my

Department of Agriculture

Wisma TaniLevel 7-17, Lot 4G2, Precint 4Federal Government


Tel: 603 8870 3000Fax: 603 8888 5069E-mail: [email protected]: www.doa.gov.my

Department of Veterinary ServicesWisma Tani, Podium BlockLot 4G1, Precint 4Federal Government


Tel: 603 8870 2000Fax: 603 8888 6021E-mail: [email protected]: www.dvs.gov.my

Department of Fisheries

Wisma TaniLevel 1-7, Lot 4G2, Precint 4Federal Government


Tel: 603 8870 4000Fax: 603 8888 2460E-mail: [email protected]: www.dof.gov.my

Federal Agricultural Marketing

Authority

Bangunan FAMA Point, Lot 17304Jalan Persiaran 1Bandar Baru Selayang68100 Batu CavesSelangor Darul Ehsan

Tel: 603 6126 2020Fax: 603 6138 3650E-mail: [email protected]: www.famaxchange.org

Malaysian Agricultural Research

& Development Institute

GPO Box 1230150774 Kuala Lumpur

Tel: 603 8943 7111Fax: 603 8948 3664E-mail: [email protected]: www.mardi.my

Fisheries Research Institute

11960 Batu Maung, PenangTel: 604 626 3925/626 3926Fax: 604 6262210E-mail: [email protected]: www.fri.gov.my

Ministry of Plantation Industries

and Commodities

No. 15, Level 6-13, Lot 2G4, Precint 2

Federal GovernmentAdministrative Centre62654 Putrajaya

Tel: 603 8880 3300Fax: 603 8880 3441E-mail: [email protected]: www.kppk.gov.my

Malaysian Palm Oil Board

No. 6, Persiaran InstitusiBandar Baru Bangi43000 KajangSelangor Darul Ehsan

Tel: 603 8769 4400Fax: 603 8925 9446E-mail: [email protected]: www.mpob.gov.my

Halal Industry DevelopmentCorporation

5.02 Level 5, KPMG TowerFirst Avenue, Persiaran Bandar UtamaBandar Utama47800 Petaling JayaSelangor Darul Ehsan

Tel: 603 7965 5555Fax: 603 7965 5500E-mail: [email protected]: www.hdcglobal.com

Halal Industry Development

Corporation

Halal Integrity DivisionGround Floor, Block 2200Persiaran APEC63000 Cyberjaya

Tel: 603 8315 0200Fax: 603 8318 7044E-mail: [email protected]

or; [email protected]

Website:www.hdcglobal.com/certification

Malaysian Cocoa Board

5th-6th Floor, Wisma SEDCOLorong Plaza Wawasan, Off CoastalHighway, 88999 Kota Kinabalu

SabahTel: 6088 234 477Fax: 6088 239 575E-mail: [email protected]: www.koko.gov.my

Forest Research Institute

Malaysia

52109 Kepong, SelangorTel: 603 6279 7000Fax: 603 6273 1314E-mail: [email protected]: www.frim.gov.my

Food Safety and Quality Division

Department of Public HealthMinistry of HealthLevel 3, Block E7, Parcel EFederal Government


Tel: 603 8883 3888Fax: 603 8889 3815E-mail: [email protected]

Website: www.moh.gov.my/fsq

SIRIM Berhad

No. 1, Persiaran Dato MenteriSection 2, P.O. Box 703540911 Shah AlamSelangor Darul Ehsan

Tel: 603 5544 6000Fax: 603 5510 8095E-mail: [email protected]: www.sirim.my

SIRIM QAS International

Sdn. Bhd.

Block 8, SIRIM Complex1, Persiaran Dato Menteri40911 Shah AlamSelangor Darul Ehsan

Tel: 603 5544 6400Fax: 603 5544 6810E-mail: [email protected]: www.sirim-qas.com.my


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ASIA - PACIFICMIDA SydneyLevel 6, MAS Building, 16 Spring StreetSydney N.S.W. 2000, Australia

Tel: (612) 9251 1933Fax: (612) 9251 4333E-mail: [email protected]

MIDA OsakaMainichi Intecio 18F3-4-5 Umeda, Kita-kuOsaka 530-0001, JapanTel: (816) 6451 6661Fax: (816) 6451 6626Email: [email protected]

MIDA Tokyo32F, Shiroyama Trust Tower4-3-1,Toranomon, Minato-ku

Tokyo 105-6032, JapanTel: (813) 5777 8808Fax: (813) 5777 8809Email: [email protected]: www.midajapan.or.jp

MIDA Seoul17th Floor, SC First Bank Building100, Gongpyung-dong, Jongro-guSeoul 110-702, Republic of KoreaTel: (822) 733 6130 / 6131Fax: (822) 733 6132E-mail: [email protected]

MIDA Taipei

Malaysian Friendship & Trade Centre12F, Suite A, Hung Kuo BuildingNo. 167, Tun Hua North RoadTaipei 105, TaiwanTel: (8862) 2713 5020 (GL)

(8862) 2718 6094Fax: (8862) 2514 7581Email: [email protected]

MIDA ShanghaiUnit 807-809, Level 8Shanghai Kerry CentreNo.1515, Nanjing Road (West)Shanghai 200040Peoples Republic of China

Tel: (8621) 6289 4547(8621) 5298 6335

Fax: (8621) 6279 4009E-mail: [email protected]

MIDA GuangzhouUnit 1804B-05CITIC Plaza Office Tower233 Tianhe Bei Road

Guangzhou510610 ChinaTel : (8620) 8752 0739Fax : (8620) 87520753E-mail: [email protected]

MIDA DubaiUnit 2204-2206, 22F Tower ABusiness Central Tower(P.O. Box: 4598)DubaiUnited Arab EmiratesTel: 00 971-4-4343-696 /697Fax: 00 971-4-4343-698E-mail: [email protected]

MIDA Mumbai81 & 87, 8th Floor, 3rd North AvenueMarker MaxityBandra Kurla Complex, Bandra EastMumbai 400051IndiaTel: (9122) 2659 1155/1156Fax: (9122) 2659 1154E-mail: [email protected]

EUROPEMIDA Paris42, Avenue Kleber

75116 Paris, FranceTel: (331) 4727 3689 / 6696Fax: (331) 4755 6375E-mail: [email protected]

MIDA Frankfurt17th Floor, Frankfurt KastorPlatz der Einheit 160327 Frankfurt am MainGermanyTel: (49069) 7680 708-0/12Fax: (49221) 7680 708-20E-mail: [email protected]

MIDA Milan

5th Floor,Piazza Missori 320123 MilanItalyTel: (3902) 3046 521Fax: (3902) 3046 5242E-mail: [email protected]

MIDA StockholmKarlavgen 37, P.O. Box 26053SE-10041 Stockholm, SwedenTel: (468) 791 7942/440 8400

Fax: (468) 791 8761E-mail: [email protected]

MIDA London17 Curzon StreetLondon W1J 5HRUnited KingdomTel: (4420) 7493 0616 / 4533Fax: (4420) 7493 8804E-mail: [email protected]

NORTH AMERICAMIDA Los Angeles550, South Hope St., Suite 400

Los Angeles, California 90071, USATel: (1213) 955 9183 / 9877Fax: (1213) 955 9878E-mail: [email protected]

MIDA San Jose226, Airport Parkway, Suite 480San Jose, California 95110, USATel: (1408) 392 0617 / 8Fax: (1408) 392 0619E-mail: [email protected]

MIDA ChicagoJohn Hancock Center, Suite 1515875, North Michigan Avenue

Chicago, Illinois 60611, USATel: (1312) 787 4532Fax: (1312) 787 4769E-mail: [email protected]

MIDA New York313 East, 43rd St., New YorkNew York 10017, USATel: (1212) 687 2491Fax: (1212) 490 8450E-mail: [email protected]

MIDA BostonOne International Place, Floor 8Boston, MA 02110, USA

Tel: (1617) 338 1128 / 1129Fax: (1617) 338 6667E-mail: [email protected]

MIDA JohorRoom 15.03, Level 15, Wisma LKN49, Jalan Wong Ah Fook80000 Johor Bahru, JohorTel: (607) 224 2550/224 5500Fax: (607) 224 2360E-mail: [email protected]

MIDA Kedah & Perlis4th Floor, East Wing, No. 88, Menara BinaDarulaman Berhad, Lebuhraya Darulaman05100 Alor Setar , KedahTel: (604) 731 3978Fax: (604) 731 2439E-mail: [email protected]

MIDA Kelantan5th Fl.,Bangunan PKINKJalan Tengku Maharani Puteri15000 Kota Bharu, KelantanTel: (609) 748 3151Fax: (609) 744 7294E-mail: [email protected]

MIDA Melaka3rd Fl., Menara MITCKompleks MITC, Jalan Konvensyen75450 Ayer Keroh, MelakaTel: (606) 232 2876/78Fax: (606) 232 2875E-mail: [email protected]

MIDA Negeri SembilanSuite 13.01 & 13.0213th Floor, Menara MAA70200 Seremban, Negeri SembilanTel: (606) 762 7921 (GL)

(606) 762 7884 (DL)Fax: (606) 762 7879E-mail: [email protected]

MIDA PahangSuite 3, 11th Fl., Kompleks TeruntumP.O. Box 178, 25720 Kuantan, PahangTel: (609) 513 7334Fax: (609) 513 7333E-mail: [email protected]

MIDA PerakLevel 4, Perak Techno Trade Centre (PTTC)Bandar Meru Raya, Off Jalan JelapangP.O.Box 210, 30720 Ipoh, PerakTel: (605) 526 9962/526 9961Fax: (605) 527 9960E-mail: [email protected]

MIDA Pulau Pinang4.03, 4th Floor, Menara Boustead Penang39, Jalan Sultan Ahmad Shah10050, Pulau PinangTel: (604) 228 0575Fax: (604) 228 0327E-mail: [email protected]

MIDA SabahLot D9.4 & D9.5, Tingkat 9Block D, Bangunan KWSP, Karamunsing88100 Kota Kinabalu, SabahTel: (6088) 211 411Fax: (6088) 211 412E-mail: [email protected]

MIDA SarawakRoom 404, 4th Fl. Bangunan Bank Negara,No. 147, Jalan Satok, P.O. Box 71693714 Kuching, SarawakTel: (6082) 254 251/237 484Fax: (6082) 252 375E-mail: [email protected]

MIDA Selangor22nd Floor, Wisma MBSAPersiaran Perbandaran40000 Shah Alam, Selangor Darul EhsanTel: (603) 5518 4260Fax: (603) 5513 5392E-mail: [email protected]

MIDA Terengganu5th Floor, Menara Yayasan Islam TerengganuJalan Sultan Omar20300 Kuala Terengganu, TerengganuTel: (609) 622 7200Fax: (609) 623 2260E-mail: [email protected]

MIDAs State Offices

Malaysian Industrial Development Authority

MIDAs Overseas Offices


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Food Industry Division

Malaysian Industrial Development Authority

Block 4, Plaza Sentral, Jalan Stesen Sentral 5

50470 Kuala Lumpur, MalaysiaTel: (603) 2267 3427

Fax: (603) 2267 6699

Email: [email protected]

Website: www.mida.gov.my

For more information on investment opportunities,

please contact:

July 2009

food industries in world

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