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| Foreword |
| Rapid expansion of the Malaysian economy over the past two decades has resulted in changing food consumption patterns and a growth in demand for agricultural products. Domestic production, however, cannot keep pace with rising demand. Demand for food, especially for wheat-based products, livestock, dairy products, sugar and vegetables, is expected to continue to increase. Imports are essential to meeting Malaysia’s food requirements. Malaysia is a net importer of food products, with total agricultural imports valued at around US$6.6 billion in 2006. Australia is the leading agricultural exporter to Malaysia. The key agricultural imports from Australia are wheat, sugar and dairy products. Other agricultural imports from Australia include wool, live cattle, vegetables, sheep meat, beef and fruits. The food processing industry is important in Malaysia and growing significantly, with many intermediate inputs being imported. For example, wheat and sugar are used for further processing for bakery products and confectionaries, and meat in the production and export of halal products. Because of its geographic proximity, Australia can play an important role in meeting Malaysia’s food demand. This report analyses agricultural consumption, production and imports in Malaysia. The current market access arrangements and the implications for Australia’s agricultural exports to Malaysia are also discussed. |
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| Phillip Glyde Executive Director July 2008 |