World Grain - October 2018 - 20

COUNTRY FOCUS

Focus on Malaysia
Country is an importer of grain,
a big exporter of palm oil
by Chris Lyddon

Malaysia doesn't produce any wheat and produces a small
corn crop, leading it to import both for food and feed uses.
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makes it a big importer. It is, however, a major producer and
exporter of palm oil.
The International Grains Council (IGC) forecasts Malaysia's total grains imports at 5.5 million tonnes in 2018-19,
compared with 5.6 million the year before. Forecast 201819 imports of wheat are 1.6 million tonnes, down from 1.5
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changed 3.9 million tonnes of corn.
Australia is by far Malaysia's biggest wheat supplier. According to the IGC, its shipments to Malaysia were 786,000
tonnes in 2017-18 and 1.065 million in 2016-17. Other big
sources were the United States, Ukraine, Russia and Canada.
Argentina dominates shipments of corn to Malaysia. In 201718 it provided 2.244 million tonnes, compared with 2.291
million the year before.
"Imports from the United States are mostly hard red spring
wheat, which is high in protein and has superior gluten quality that makes it ideal for high quality bread and pastries," the attaché explained in an annual report on the grains
sector published in April. "Wheat imported from Australia is mainly Australian Premium White Wheat, which is
used to produce Asian instant and fresh
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noodles. Malaysia also imports Australian Standard White, which is used
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Chapati and Prata breads."
The attaché expected Australia's leading role
as wheat supplier to continue.
"Australia's proximity to Malaysia provides
competitive advantage in terms of delivery time
and transportation cost," the report said.
Corn production in Malaysia is stable at 58,000 tonnes
forecast for 2018-19, the same level as the year before, according to the attaché.
"There is no commercial corn production for feed in MaC H INA

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Key Facts
Capital: Kuala Lumpur.
Population: 31,381,992 (July 2017 est.).
Religions: Muslim (official) 61.3%, Buddhist 19.8%, Christian
9.2%, Hindu 6.3%, Confucianism, Taoism, other traditional Chinese religions 1.3%, other 0.4%, none 0.8%, unspecified 1%
(2010 est.
Location: Southeastern Asia, peninsula bordering Thailand and
northern one-third of the island of Borneo, bordering Indonesia,
Brunei, and the South China Sea, south of Vietnam.
Government: Federal parliamentary constitutional monarchy.
Chief of state: King Muhammad V (since Dec. 13, 2016); head
of government: Prime Minister Mahathir Mohamad (since May
10, 2018).
Economy: Malaysia, an upper middle-income country, has
transformed itself since the 1970s from a producer of raw materials into a multi-sector economy. Under the current Prime Minister, Malaysia is attempting to achieve high-income status by
2020 and to move further up the value-added production chain
by attracting investments in high technology, knowledge-based
industries and services. The Economic Transformation Program
is a series of projects and policy measures intended to accelerate the country's economic growth. The government also has
taken steps to liberalize some services sub-sectors. Malaysia is
vulnerable to a fall in world commodity prices or a general slowdown in global economic activity. The current administration is
continuing efforts to boost domestic demand and reduce the
economy's dependence on exports. Domestic demand continues to anchor economic growth, supported mainly by private
consumption, which accounts for 53% of GDP. Nevertheless,
exports - particularly of electronics, oil and gas, and palm
oil - remain a significant driver of the economy. In order to
increase Malaysia's competitiveness, Former Prime Minister
Najib Razak raised possible revisions to the special economic
and social preferences accorded to ethnic Malays under the
New Economic Policy of 1970, but retreated in 2013 after he
encountered significant opposition from Malay nationalists and
other vested interests. In September 2013, he launched the new
Bumiputra Economic Empowerment Program, policies that favor
and advance the economic condition of ethnic Malays. Malaysia
signed the 12-nation Trans-Pacific Partnership (TPP) free trade
agreement in February 2016, although the future of the TPP
remains unclear following the U.S. withdrawal from the agreement. Along with nine other ASEAN members, Malaysia established the ASEAN Economic Community in 2015, which aims to
advance regional economic integration.
GDP per capita: $29,000 (2017 est.); inflation: 3.8% (2017
est.); unemployment: 3.4% (2017 est.).
Currency: Ringgits (MYR): 4.14 Malaysian ringgits equal 1 U.S.
dollar (Sept. 20, 2018).
Exports: $188.2 billion (2017 est.): semiconductors and electronic equipment, palm oil, petroleum and liquefied natural gas,
wood and wood products, palm oil, rubber, textiles, chemicals,
solar panels.
Imports: $163.4 billion (2017 est.): electronics, machinery,
petroleum products, plastics, vehicles, iron and steel products,
chemicals.
Agriculture: 8.4% of GDP and 11% of the labor force.
Internet: Code: .my; 24,384,952 users.
Source: CIA Factbook

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