Table of Contents

Primary Sector

Farming

Harvesting success: An outlook on farming in Malaysia

MALAYSIAN FARMING SECTOR
Malaysia's palm oil production accounts for 26% of world production and 34% of world exports.

As the second largest palm oil producer in the world, Malaysia’s palm oil production accounts for 26% of world production and 34% of world exports (International Trade Administration U.S. Department of Commerce, 2024). According to Statista (2023), the value of Malaysia’s agricultural exports has increased by over 30% in 2021. Despite its high value of export in palm oil and rubber, Malaysia’s production of food crop was never sufficient to meet local demand. In fact, the country’s import for rice alone was able to reach more than one million metric tons in 2021, which makes up around 30% of the country’s demand for staple food commodity (Statista, 2023). In other words, opportunities for foreign investments exist in the farming industry of the country as only 0.4 million hectares of the 8 million hectares of agricultural land was cultivated as of the fourth quarter of 2023 (New Straits Times, 2023). According to Statista (2024), the gross production value of the agriculture industry in Malaysia is projected at USD 12.76 billion in 2024, with expectations that it will reach a value of USD 15.64 billion in 2028 with a compound annual growth rate (CAGR) of 5.22%. Among the projected gross production value, the import value is projected at USD 7,972 million in 2024. 

Livestock

Raising excellence For Sustainability: An outlook on livestock in Malaysia

MALAYSIAN CATTLE SECTOR
As of 2022, the industry has reported a GDP of MYR 16.5 Billion with a forecasted livestock production of USD $4.1 Million by 2026.

According to Zayadi (2021), 40% of worldwide income under the agriculture sector is contributed by the livestock industry. In Malaysia, the industry accounts for 8.9% of the agriculture sector in the country, which contributes to 8.9% of the country’s Gross Domestic Product (GDP). According to Statista (2024), the poultry industry in Malaysia has reported a GDP of MYR 10 billion in 2022. Subsequently, the cattle industry in Malaysia has reported a GDP contribution of MYR 1.26 billion in 2022 (Statista, 2024). As of 2022, the industry has reported a GDP of MYR 16.5 billion in Malaysia (Statista, 2024). The Malaysia livestock industry is currently on an upward trend with a year-on-year increase in production of 0.2%, with a forecasted livestock production of USD 4.1 million (approx. MYR 19 million) by the year 2026 (Informa Markets, 2023). This is consistent with the upward trends in the consumption of both poultry and beef of the country, with a reported consumption per capita of 50.5 kilograms per capita and 5.73 kilograms respectively (OECD, 2022;

Forestry

Preserving the bounty of nature: An outlook on forestry in Malaysia

MALAYSIAN LOGDING SECTOR
the industry had a projected GDP of MYR 5 Billion in 2022.

Owing to its tropical climate and little seasonal variability, Malaysia is rich in forest resources. Among the abundant tropical rain forests of the country, 57% of them are reigned with trees from the Dipterocarpaceae plant family which are valuable sources of timber. Despite the industry’s projected GDP of MYR 5 billion in 2022, the forestry and logging industries in Malaysia have been on a downward trend since 2015 (Statista, 2024). This is further supplemented by the industry’s reported contribution of 0.3% to the country’s GDP in 2022 (Statista, 2024).

Aquaculture

Finding the flow to success: An outlook on aquaculture in Malaysia

MALAYSIAN AQUACULTURE
The fishery industry’s contribution to Malaysia’s GDP was projected at around MYR 11.53 billion in 2022.

The aquaculture industry involves the breeding, rearing, and the harvesting of fish and other organisms of the water environment. According to the Food and Agriculture Organization of the United Nations (FAO) (2015), the aquaculture industry in Malaysia has been a rapid growing industry with an average 10% annual growth rate since 2016, indicating an upward trend in the industry. In 2022, the fishery industry’s contribution to Malaysia’s GDP is projected at around MYR 11.53 billion, which is a slight increase from the projected amount (MYR 11.25 billion) in 2021 (Statista, 2024).

Mining & Quarrying

Dig Deep, Reach High: An outlook on mining and quarrying in Malay

MALAYSIAN MINING SECTOR
The industry’s contribution to the country’s GDP was recorded at MYR 26 Million in 2023.

The mining and quarrying industry in Malaysia involves the extraction of minerals, oil, gas, and other natural resources. According to Statista (2023), the production in the Malaysia mining and quarrying industry is expected to reach around 41,900 million kg in 2024, with a CAGR of 5.25%. The industry’s contribution to the country’s GDP was recorded at MYR 26.283 million in December 2023 (Trading Economics, 2024). It is worthwhile to note that the mining and quarrying market is vulnerable to fluctuations in global commodity prices and has experienced a decline in demand since its global supply chain disruption in 2020 due to the COVID-19 pandemic outbreak, which indicates an uncertain and complex market. Nonetheless, Malaysia’s Ministry of Energy and Natural Resources has reported a 6.5% CAGR from 2018-2022 in the industry and is expecting continuity in the industry’s upward trend for the coming years. This is backed by the recovery in demand for minerals and ores in both domestic and international market and the Malaysia government’s initiatives to transform the industry into a value chain by streamlining the sustainable management of the industry via the National Mineral Industry Transformation Plan (NMITP) 2021-2030 (The Star, 2021).

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