Selangor – Malaysia’s Biggest Wheat Importer
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Post forecasts that consumption and imports of Corn, Wheat, and rice in Malaysia will remain steady with a slight increase in Marketing Year (MY) 2023/24, in line with population growth and normalization of the market. The Government of Malaysia’s (GOM) proactive intervention in price stabilization on poultry products, Wheat flour, and rice production manages inflation and keeps domestic demand strong.
In Malaysia, total Wheat consumption in MY 2022/23 will increase compared to the previous year, assuming that prices will continue to be stable. The increase in consumption is in line with population growth and the return of tourism to Malaysia. The Malaysian Government controls the price of general all-purpose flour sold in 1-kg bags at RM 1.35 (roughly $0.34) per kg. This is an effort to control inflation, as flour is the main ingredient in roti-canai, a Malaysian staple breakfast food. For high-quality specialty flours, the price is market-based. The price is not controlled for 25 kg bags.
Post expects MY 2022/23 Wheat imports to grow 126,000 MT and anticipates imports to continue to rise in MY 2023/24, reaching 1.78 million MT. The increase in imports is based on the expectation that consumption will increase as Wheat prices stabilize. Australia remains the largest Wheat exporter to Malaysia, holding roughly half of the market share, followed by Canada, India, and the United States. However, India’s recent Wheat export ban could change that dynamic. Imports of Australian Wheat increased in MY 2021/22 and are expected to be strong in MY 2022/23.
According to AgFlow data, Malaysia imported 0.3 million tons of Wheat in Jan-May 2023. In May, the key suppliers were Australia (30,000 tons), Canada (22,000 tons), and the United States (1,274 tons). Favorable weather and increased demand resulting from India’s exit from the MY 2022/23 market will boost Australian exports to Malaysia. Australian Wheat exports from July to November 2022 saw a surge of 26 percent over the same period the previous year. Malaysian Wheat exports are relatively low, primarily to neighboring countries such as Singapore, Thailand, and Brunei.
In 2021, Malaysia imported Wheat worth $485 million, becoming the world’s 35th largest importer of Wheat. In the same year, Wheat was Malaysia’s 94th most imported product. Malaysia imports Wheat primarily from Australia ($306 million), the United States ($68.1 million), Canada ($59.3 million), Ukraine ($18.2 million), and India ($15 million). The fastest-growing import markets in Wheat for Malaysia between 2020 and 2021 were Australia ($189 million), Canada ($20.9 million), and Romania ($14 million).
In 2021, Malaysia exported Wheat worth $723k, making it the world’s 66th largest exporter of Wheat. In the same year, Wheat was Malaysia’s 971st most shipped product. The leading destination of Wheat exports million from Malaysia is Singapore ($493k), the Philippines ($148k), Thailand ($44k), Brunei ($19.5k), and Vietnam ($18.3k).
In 2021, the import value of Wheat to Malaysia was approximately 1.77 billion Malaysian ringgit, an increase compared to around 1.59 billion Malaysian ringgit in the previous year, according to Statista. The value of Wheat imports has increased since 2012 and was at its highest in 2021.
The Largest Wheat Importing States in Malaysia
Malaysia’s imports of unmilled Wheat rose 98.5 percent year-on-year (y-o-y) in May 2022, recording a value of RM227.5 million, with Selangor, Penang, and Sabah being the top importers, the Department of Statistics Malaysia said.
Chief statistician Datuk Seri Dr. Mohd Uzir Mahidin said Selangor was the highest importer of the commodity at RM101.0 million (44.4 percent), followed by Penang (RM74.2 million, 32.6 percent) and Sabah (RM19.0 million, 8.3 percent). However, imports decreased in Melaka (-RM137.0 million), Perlis (-RM14.3 million), Kelantan (-RM8.5 million), and Labuan (-RM1.2 million).
Other sources: THESTAR
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