法兰德斯-2020年马来西亚餐饮报告（英文）-2021.5-28页_2mb

Summary of the FOOD AND BEVERAGE INDUSTRY REPORT - NEDC MALAYSIA 2020

Core Content

The Food & Beverages (F&B) Industry in Malaysia is a significant contributor to the national economy, showing strong growth potential. The report highlights Malaysia's strategic position in the region, its economic outlook, and the opportunities available for Flemish companies to invest and expand in the local F&B market.

Main Points

• Economic Outlook:
  Malaysia's economy in 2019 had a population of 32.68 million and a GDP of €312.12 billion. The F&B industry alone was valued at €22.12 billion in 2018, growing at an annual rate of 7.6%. The country is a net food importer, with high reliance on imports for staples like rice, meat, and dairy.

• Malaysia as a Gateway to ASEAN and Asia:
  Malaysia is strategically located at the heart of ASEAN and has strong trade links with neighboring countries. It also has a Free Trade Zone with China, offering tax-free business opportunities. The country is part of multiple Free Trade Agreements (FTAs), enhancing its trade connectivity and market access.

• Market Features:

  • Market Overview: The F&B industry is diverse, with a mix of local and foreign players, and is dominated by SMEs. It has a strong export base, particularly in palm oil-based products.
  • Agriculture & Processed Food Ecosystem: Malaysia has a well-developed agricultural system, producing a variety of food products. It imports many raw materials for processing, such as wheat, dairy, and sugar.
  • Key F&B Sectors: Includes livestock, dairy, cereals, cocoa, fruits and vegetables, and palm oil-based products. The country is the 2nd largest cocoa processor in Asia and 8th in the world.
  • Foreign Players: The F&B distribution market is fragmented, with many local and international players. Foreign companies need to focus on branding and marketing strategies to capture market share.
  • Key Players: Major local companies include Nestlé, Dutch Lady, and PPB Group, while international players are also active in the sector.

Key Opportunities for Flemish Companies

• Government Incentives:
  The Malaysian government offers various incentives to attract foreign direct investment (FDI), including tax exemptions, income tax relief, and pioneer status for manufacturing companies.

• Promoted Food Manufacturing Products:
  The government promotes certain food products such as nutrition bars, functional cereal, functional drinks, protein products, and vitamins & supplements, which align with the growing demand for healthy and functional foods in Malaysia.

• Healthy Lifestyle Trends:
  There is a rising demand for organic, functional, and healthy foods due to increased health consciousness among Malaysians. The shift in consumer behavior is driven by higher income levels and a preference for sustainable and nutritious options.

• European Product Quality Perception:
  Malaysians tend to prefer European products due to their perceived higher quality, especially in infant food, chocolates, and confectionery. This perception presents a significant opportunity for Flemish companies to enter the market.

• Global Halal Opportunities:
  With over 60% of the population being Muslim, Halal-certified F&B products have a large market potential. Flemish companies are encouraged to obtain Halal certification to tap into both Muslim and non-Muslim markets.

Challenges and Needs

• Food Security:
  Malaysia is highly dependent on food imports, which poses a risk to food security. The government is working on R&D initiatives to improve pre- and post-harvest technologies and reduce reliance on imports.

• Inefficient Supply Chain:
  The country's heavy reliance on imported raw materials and finished products has led to supply chain disruptions, especially during the pandemic. The government is promoting Industry 4.0 and automation to improve efficiency.

• High Price Sensitivity:
  Malaysians are highly price-sensitive, and this is a key factor in their purchasing decisions. Retailers and manufacturers must balance price and value to remain competitive.

• SMEs Limitations:
  Many SMEs lack the knowledge and financial resources to modernize their production processes. This limits their ability to compete with larger foreign and local companies. The government offers grants and incentives to help SMEs improve their operations.

Market Access

• Distribution Channels:
  The F&B distribution market is highly fragmented, with a mix of small-scale and large-scale retailers. E-commerce is growing rapidly, especially during the pandemic, with 62% of Malaysians now shopping online, mainly via mobile devices.

• Market Entry Modes:
  Flemish companies can enter the market through joint ventures, partnerships, or direct investment. The government supports foreign investment with favorable policies and incentives.

• Regulatory Framework:
  Malaysia has a strong legal framework, including robust IP protection, which supports business development. The regulatory environment is investor-friendly, with tax and capex incentives for foreign investors.

Trade Events

• Malaysia International Halal Showcase (MIHAS): A major event for showcasing Halal products and connecting with buyers.
• Selangor International Expo: Offers a platform for food and beverage businesses to network and explore market opportunities.
• Malaysian International Food & Beverage Trade Fair (MIFB): A key trade fair for the F&B industry in Malaysia.
• Malaysia International Packaging & Food Processing Exhibition (M'SIA-PACK & FOODPRO): Highlights packaging and food processing innovations.
• Malaysia International Retail and Franchise Exhibition (MIRF): Focuses on retail and franchise opportunities in the F&B sector.
• Food and Hotel Malaysia (FHM): A major event for the hospitality and F&B industry.

Conclusion

Malaysia presents a promising market for Flemish companies in the F&B sector, with a growing economy, diverse industry, and strong government support for FDI. The country's strategic location, favorable trade agreements, and increasing consumer demand for healthy and Halal products make it an attractive destination for investment. However, challenges such as supply chain inefficiencies, high price sensitivity, and the need for modernization of SMEs must be addressed to fully capitalize on the opportunities.