Rice market in Malaysia

Earlier Report Observations

The Malaysian rice market experienced volume fluctuations between 2018 and 2023, shaped by domestic production constraints and shifting import levels. Local output faced repeated challenges, including weather disruptions and shortages of subsidized fertilizers in key growing areas like Kedah, which prompted some farmers to switch crops. Government subsidies and the gradual adoption of modern technology aimed to support the sector, while global supply shocks increasingly dictated import dynamics.

Global trade disruptions played a decisive role. The Russia-Ukraine conflict in 2020 strained international rice shipments, leading Malaysia to increase imports to 1.22 million tons, supporting market volume growth to 3.52 million tons. India's export restrictions in 2021 tightened global availability, contributing to a slight market dip. By 2022, local production fell further amid ongoing fertilizer issues, and market volume contracted to 3.41 million tons despite higher imports. In 2023, a sharp rise in import prices due to global factors prompted government interventions, including increased production quotas and a ban on mixing local and imported rice; these measures coincided with a market recovery to 3.46 million tons as imports rose substantially.

Subsequent policy and market adjustments focused on stabilization. India's termination of export restrictions in late 2024 lowered import rice prices. Malaysian authorities also boosted national physical rice reserves to cover nearly six months of needs and continued to promote research into climate-resilient rice varieties under the National Agrifood Policy, aiming to enhance long-term food security.

Production rice in Malaysia

In kind, 2018-2021, K t

Malaysia was among the world's leading rice producers from 2018 to 2021, ranking 27th globally by production volume.

Top producers of rice, 2018-2021

World map of production of rice, 2018-2021

Malaysia's rice production increased for the second consecutive year. In 2021, the country produced 2 442 K t of rice, marking a modest gain of 3.6% compared to the previous year. However, over the period from 2018 to 2021, production decreased by 7.5%, equating to an annualized decline of 2.6%. The lowest production volume was recorded in 2019 at 2 353 K t, which also saw the largest decline of 10.8%.

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

In value, 2018-2021, M $ US

After a two-year decline, rice production in Malaysia increased. In 2021, the output was valued at 987 M $ US, showing a gradual increase of 5.8% compared to the previous year. From 2018 to 2021, production decreased by 14.3%, with a compound annual growth rate (CAGR) of -5.0%. The minimum value was recorded in 2020 at 934 M $ US, while the largest decline occurred in 2019 at 11.0%.

Annual dynamics of production in Malaysia in value, 2018-2021, M $ US

Exports rice from Malaysia

Exports in kind, K t

Rice exports from Malaysia increased for the third consecutive year. In 2021, Malaysia exported 97 K t of rice, up by 65.8% year-over-year. Over the period from 2018 to 2021, exports surged by 391.5%, with a compound annual growth rate (CAGR) of 70.0%.

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

From 2018 to 2021, 96.3% of Malaysia's total rice exports in kind were directed to Indonesia, making this market overwhelmingly dominant.

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

Rice exports from Malaysia increased for the third consecutive year. In 2021, Malaysia exported 39.1 M $ US of rice, marking an improvement of 69.3% compared to the previous year. Over the period from 2018 to 2021, exports grew by 355.3%, with a compound annual growth rate (CAGR) of 65.7%.

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

From 2018 to 2021, rice from Malaysia was largely oriented towards Indonesia, whose share in total exports in value terms reached 96.2%.

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

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

Imports rice to Malaysia

Imports in kind, K t

After a two-year rise, cross-border shipments of rice to Malaysia declined. In 2021, imports stood at 1 154 K t, representing a moderate decrease of 5.4% from a year earlier. Over the period from 2018 to 2021, imports increased by 42.8%, with a compound annual growth rate (CAGR) of 12.6%. The highest import volume was recorded in 2020 at 1 220 K t, which also saw the largest increase of 25.8%.

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

Throughout 2018 to 2021, Vietnam (34.6% of imports in kind), Thailand (23.8% of imports in kind), and India (21.6% of imports in kind) formed the core of imports, together accounting for 80.0% 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

After a two-year increase, foreign rice supplies to Malaysia declined. In 2021, Malaysia imported approximately 575.5 M $ US of rice, amounting to a small decrease of 2.3% over the past year. From 2018 to 2021, imports increased by 41.9%, with a compound annual growth rate (CAGR) of 12.4%. The maximum value was recorded in 2020 at 589.1 M $ US, which also experienced the largest increase of 30.1%.

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

In 2018 to 2021, Vietnam (34.0% of imports in value terms), India (22.9% of imports in value terms), and Thailand (21.5% of imports in value terms) together accounted for 78.3% of total imports in value terms, remaining the main sources for rice to Malaysia.

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

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