Industry News

In order to further consolidate and expand the development of domestic and international food and beverage industry, the 17thMalaysia International Food and Beverage ExpoThe MIFB Expo (hereinafter referred to as MIFB Expo) will provide exhibitors and buyers with a new perspective and dedicated zones in food and beverages, seafood, and food technology. MIFB Expo 2016 plays a key role in Malaysia's economic needs and development by providing a unique platform with countless possibilities. It is the largest food industry exhibition in Malaysia.

MIFB Expo caters to the food and beverage needs of Malaysians at an industry level, with rice, noodles, bread, meat, fruits, and vegetables being the most in-demand food items in Malaysia. MIFB Expo, now in its 17th year in 2016, aims to bridge trade between Malaysia and global businesses, providing a comprehensive business service offering to food and beverage professionals, supporting the growth of the industry by providing products, services, valuable insights, and knowledge for business start-ups.

The expo featured 323 companies from 48 countries and 11 international pavilions, attracting over 15,213 business visitors from 48 countries and regions, 80% of whom were business owners or decision-makers. Malaysia has become a hub for sourcing products from ASEAN and the Middle East, allowing companies to promote their products to these markets through the expo. The 7th Food Technology Expo and the 2nd Asian Seafood Exhibition were held concurrently with the MIFB.

The United Nations reports that the world's population is projected to reach 9.6 billion by 2050. Therefore, food production must be scaled up to meet this demand. Food technology plays a crucial role in ensuring food quality and thus protecting people's health. The 2016 Food Technology Exhibition, co-hosted with the MIFB, is now in its seventh year and continues to achieve significant success and receive acclaim from the industry.

The 2nd Asian Seafood Expo will showcase a wide range of high-quality and advanced seafood products. Seafood is one of the most important sources of protein, and countries in the Asia-Pacific region are both the primary suppliers and consumers of seafood. Seafood is currently the largest traded commodity in both international and domestic markets, and is also the fastest-growing food industry in the world. Malaysia plans to achieve an annual growth rate of 2.1% for seafood imports and 2.3% for exports from 2016 to 2020. The Malaysian seafood market is actively supporting and developing the industry, encouraging greater participation from both local and international producers.

Analysis of the Halal Food Market in Malaysia

According to the Population Clock, Malaysia's population surpassed 30 million in February 2014. Indigenous people (including Malays) account for approximately 67.4%, followed by Chinese at 24.6%, Indians at 7.3%, and other ethnic minorities at 0.7%. With a per capita national income of US$10,060, Malaysia is an upper-middle-income country (the middle class accounts for approximately three-quarters of the population). Malaysia is a developing economy heavily reliant on international trade and imports of food and ingredients. With steady GDP growth, the food and beverage market is becoming increasingly diversified, with food supplies sourced both domestically and internationally.

As a member of the ASEAN Free Trade Area (AFTA), Malaysia implements the "Generally Effective Preferential Tariff" stipulated in the AFTA. Signatory countries to the regional ASEAN Free Trade Agreement include China, Japan, South Korea, Australia, New Zealand, and India. As a gateway to the ASEAN market, Malaysia has successfully attracted significant foreign investment since opening up to foreign investment in 1986. According to statistics recently released by the Malaysian Investment Development Authority (MIDA), by industry, the food industry grew by 8.7% (up from 4.7% in 2011) and the beverage industry grew by 8.4% (up from 3.0% in 2011).

Malaysia is the world's largest exporter of halal food and is striving to become an international halal food hub, offering a prime springboard for tapping into the global halal market of 1.4 billion people. Currently, halal certification issued by the Malaysian Islamic Development Department (JAKIM) is recognized by 42 Islamic associations in 22 countries. In other words, obtaining halal certification in Malaysia is equivalent to gaining access to the halal market, facilitating expansion into the Muslim food market.

The Malaysian government considers agriculture the third engine of national economic growth. In 2015, it plans to allocate RM6 billion to agricultural development projects, significantly enhancing the competitiveness and commercial value of the agricultural sector. This initiative presents another business opportunity for overseas partners: investing or forming joint ventures with local businesses to develop Malaysia's agricultural market and food processing industry.

Malaysia's grocery retail industry is quite mature. According to the Malaysian Retail Organization, 60% of food purchases are made through traditional supermarkets and specialty stores. Data from Business Monitor International (BMI) indicates that Malaysia's food retail industry is valued at US$15 billion and is projected to reach US$21 billion by 2015. Hypermarkets and large-scale stores are ubiquitous in Malaysian cities, representing the primary source of food for approximately 45% to 60% of urban consumers.