Maize flour and cereals market in Malaysia

Earlier Report Observations

The maize flour and cereals market in Malaysia began the period at 273 thousand tons in 2018 but declined to 256 thousand tons in 2019. This occurred alongside government initiatives to encourage domestic corn cultivation through pilot projects in several states, aiming to reduce the near-total reliance on imports for animal feed. However, high local production costs and the more profitable shift to hybrid sweet corn kept the country dependent on shipments from Argentina, Brazil, and the United States. Market volume then recovered to 282 thousand tons in 2020.

After stabilizing near 282 thousand tons in 2021, the market contracted to 256 thousand tons in 2022. This decline was driven by the Russia-Ukraine conflict, which triggered a global surge in prices for feed grains like corn, raising import costs and affecting domestic consumption. In 2023, the market volume dropped sharply to 116 thousand tons, coinciding with a significant reduction in imports. During this year, world corn prices fell by approximately 37% due to record production in China, but the Malaysian market was also influenced by continuous annual growth in demand for feed corn and accelerated local farming projects, such as a new 40-hectare plot in Rawang with additional funding.

Looking ahead, new food labeling regulations under amended Malaysian Food Regulations came into effect starting January 2024, which may impact maize flour and cereal products. Global factors, including raw material costs and exchange rates, continue to influence prices, while the market remains dominated by popular local brands for daily use and confectionery.

Production maize flour and cereals in Malaysia

In kind, 2018-2021, t

Top producers of maize flour and cereals, 2018-2021

World map of production of maize flour and cereals, 2018-2021

In 2021, Malaysia produced 26 376 tons of maize flour and cereals, marking a moderate year-on-year decrease of 7.9%. Over the period from 2018 to 2021, production declined by 9.3%, with a compound annual growth rate of 3.2%. The largest increase occurred in 2020, at 3.0%.

Annual dynamics of production in Malaysia in kind, 2018-2021, t

Exports maize flour and cereals from Malaysia

Exports in kind, K t

The data shows irregular changes, indicating a volatile market environment. Exports bottomed in 2018 and peaked in 2020, with a 2.3-fold difference between these years. In 2021, maize flour and cereals deliveries from Malaysia were recorded at 2.3 thousand tons, down by 52.0% from the previous year. The maximum value was reached in 2020 at 4.9 thousand tons, which also saw the largest increase of 70.2%.

Annual dynamics of product's exports from Malaysia in kind, 2018-2021, K t

From 2018 to 2021, the leading destinations for exports in kind of maize flour and cereals from Malaysia were Thailand, accounting for 28.8% of exports in kind; Asia, not elsewhere specified, at 18.5%; and Singapore, with 14.5%. Together, these three destinations made up 61.9% of total flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Malaysia in kind, 2018-2021

Exports in value, M $ US

After a two-year advance, foreign maize flour and cereals supplies from Malaysia declined. In 2021, exports stood at 2.4 million US dollars, corresponding to a robust decline of 19.4% compared to the previous year. Over the period from 2018 to 2021, exports increased by 7.2%, with a compound annual growth rate of 2.4%. The maximum value was recorded in 2020 at 3.0 million US dollars, which also saw the largest increase of 23.3%.

Annual dynamics of product's exports from Malaysia in value, 2018-2021, M $ US

From 2018 to 2021, Singapore, with 18.7% of exports in value terms; Brunei Darussalam, at 15.0%; and Indonesia, with 12.2%, formed the largest group of buyers of maize flour and cereals from Malaysia. However, their combined contribution was limited to 46.0% of total exports in value terms, reflecting a diversified country structure.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Malaysia in value, 2018-2021

Imports maize flour and cereals to Malaysia

Imports in kind, K t

In 2021, maize flour and cereals deliveries to Malaysia stood at 257.7 thousand tons, showing minimal change relative to the prior year. Between 2018 and 2021, imports increased by 4.8%, equating to an annualized rate of 1.6%. The minimum value was recorded in 2019 at 231.4 thousand tons, which saw the largest decline of 5.9%. The maximum value was reached in 2020 at 258.4 thousand tons, which also experienced the largest increase of 11.7%.

Annual dynamics of product's imports to Malaysia in kind, 2018-2021, K t

Over the period from 2018 to 2021, Argentina, with 57.5% of imports in kind; Brazil, at 12.6%; and Thailand, with 8.4%, consistently occupied leading positions in the country structure of imports in kind. Together, they accounted for 78.5% of total flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Malaysia in kind, 2018-2021

Imports in value, M $ US

Maize flour and cereals deliveries to Malaysia increased for the second consecutive year. In 2021, import volume stood at 106.3 million US dollars, indicating a strong increase of 19.5% relative to the prior year. Over the period from 2018 to 2021, imports increased by 21.6%, with a compound annual growth rate of 6.7%. The minimum value was recorded in 2019 at 79.5 million US dollars, which saw the largest decline of 9.1%.

Annual dynamics of product's imports to Malaysia in value, 2018-2021, M $ US

Throughout 2018 to 2021, Argentina, with 36.5% of imports in value terms; Thailand, at 24.2%; and China, with 9.9%, remained the key partners in imports in value terms. Together, they accounted for 70.5% of total flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Malaysia in value, 2018-2021