Agricultural and Food Industries in Malaysia

Abstract

Recent studies on the export of processed food in Malaysia have shown obvious increments in the acceptance of its food products in the overseas market. Malaysia consists of a very diverse population which contributes to the wide selection of unique food products produced locally. This opens a window for Malaysia to become a major exporter in the Association of Southeast Asian Nations (ASEAN) region where it is reported to have a population of over 600 million. Furthermore, with the country’s major population being Muslims, it also provides the opportunity for the country to be positioned as an international-ready domestic market for halal food in the global market. Developments in the agricultural and agro-food processing sector in Malaysia have placed Malaysia among the leading ASEAN countries for the food and beverage industry, but to-date only big key players are able to benefit from these strong value propositions as currently, most business establishments in Malaysia are Small Medium Enterprises (SME) and there is still a huge lack in locally produced agricultural and agro-food processing machinery that could be of great help to the SMEs. To cater to the bulk production for the global market, there is a great need for new machines to be invented so that the cottage industries and SMEs could expand and sustain their business in the long run. Universities and research centres in Malaysia play important roles in the development of these machines that are able to complement the small-medium enterprises especially the cottage industries that are currently producing food and agricultural products in a smaller scale due to the lack of modernization involved. It is also crucial to sustain its position as one of the top countries for the exports of Halal food products. It is hoped that with these inventions, the small-medium enterprises involved in the cottage industry that are producing food products would not only benefit from the inventions but also increase the socio-economy of these business owners.