Malaysia's food technology
Rising Global Consultants
Agriculture and food processing
Large and high-impact agricultural projects have the opportunity to help Malaysia achieve self-sufficiency in food production and reduce the country’s reliance on imported food over time. According to the National Agro-Food Policy 2021-2030, the focus is on developing and upgrading key agricultural products, such as rice, dairy, livestock, fruits, and vegetables.
The government, through the Ministry of Agriculture and Food Industries (MAFI), encourages innovation and the adoption of advanced technologies in operations to enhance profitability and create more efficient, sustainable, and resilient agricultural production processes.
65.2%
Domestic investment
20.5 million ringgit
Total approved investment amount in 2021
34.8%
Foreign investment
The main sub-sectors of the agriculture and food industry
Livestock
Agriculture
Aquaculture
Fruits and vegetables
Floristry
Palm oil products
Palm oil refining in Malaysia began in the early 1970s in response to government calls for increased industrialization. The establishment of refineries marked the introduction of a large volume of palm oil processed products. Today, the country has become a significant player in the global edible oils and fats market, ranking as the world’s second-largest producer and exporter of palm oil
Due to its low cost and health benefits, palm oil is an attractive choice for many food manufacturers. It can be found in nearly half of all foods, from supermarket shelves to local grocery stores. Palm oil contains the highest natural source of tocotrienols—antioxidants—with properties such as anti-inflammatory, cholesterol-lowering, cancer-preventing, radiation-protecting, and neuroprotective. Additionally, palm oil has a balanced ratio of unsaturated and saturated fatty acids. When consumed, it behaves more like monounsaturated fat and does not adversely affect blood cholesterol levels
70.8%
Domestic investment
45.6 million Malaysian Ringgit
Total approved investment amount in 2021
29.2%
Foreign investment
Leading palm oil producers in Southeast Asia
Malaysia, with its rich natural resources, is a major palm oil producer in the region. We are committed to maintaining the sustainability of the industry and are involved in various advocacy and promotional programs related to palm oil and palm oil-based products
As part of the United Nations Sustainable Development Goals (SDGs), Malaysia actively promotes sustainable and good agricultural practices. This includes integrating the concept of a circular economy into the palm oil industry to help optimize the use of raw materials and minimize waste caused by production inefficiencies, emissions, and energy inefficiencies. The aim is to encourage the reduction, reuse, and recycling of materials that are often underutilized in the current linear economy. Adopting this model not only addresses environmental issues negatively impacting the industry but also helps resolve raw material supply challenges
Government support
Domestic Investment Strategic Fund (DISF)
Industry 4WRD Intervention Fund
Automation Capital Allowance (ACA)
Palm biomass
Malaysia’s biomass supply typically comes from four main sources: agricultural waste, oil palm waste, wood waste, and municipal waste. Malaysia produces approximately 168 million tons of biomass annually, with the palm oil industry contributing over 80 million tons. This ample supply reflects significant growth potential, especially in manufacturing and renewable energy sectors.
The types of palm biomass generated include oil palm fronds (OPF), palm kernel shells (PKS), oil palm trunks (OPT), empty fruit bunches (EFB), mesocarp fiber, palm kernel shells (PKS), and palm oil mill effluent (POME). These palm biomass components have various potential uses, such as fuel for power generation, biochemical products, fertilizers, and biofuels. Most implemented palm biomass projects focus on the production of pellets, activated carbon, fiberboard, animal feed, and organic compost.
Government support
Companies involved in processing or utilizing biomass to produce value-added products are eligible for the following tax incentives:
- Pioneer Status (PS) provides Emerging Industry Status (PS), offering income tax exemptions ranging from 70% to 100% on statutory income for a period of 5-10 years
- For eligible capital expenditures incurred within 5-10 years, there is a 60%-100% Investment Tax Allowance (ITA). This allowance can be used to offset 70% of statutory income for each taxable year
Companies in this industry are also eligible for the following reinvestment incentives:
- Enjoying Emerging Industry Status (PS), with a 5-year income tax exemption of 70% on statutory income.
- For eligible capital expenditures incurred within 5 years, there is a 60% Investment Tax Allowance (ITA). This allowance can be used to offset 70% of statutory income for each taxable year.
2.8%
Domestic investment
152.5 million Malaysian Ringgit
Total approved investment amount in 2021
97.2%
Foreign investment
85%
Global palm oil production
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Phone Number: +60 3-8682 1802 | E-mail: officer@rising.com.my