PETALING JAYA: Malaysia’s food system continues to demonstrate resilience, with food availability supported by strong domestic production of mass‑market proteins and diversified imports, although structural gaps persist in staples such as rice.
The country has rolled out several national policies to strengthen food security, including the National Agrofood Policy 2021 to 2030 (NAP 2.0), which promotes technology‑driven farming, and the National Food Security Policy 2030, which focuses on building a more resilient and efficient agrofood sector.
The 13th Malaysia Plan also prioritises large‑scale food production hubs, smart‑farming adoption and agricultural insurance schemes to boost domestic supply and reduce the growing food import bill.
Hong Leong Investment Bank (HLIB) Research, however, noted that implementation remains challenging, as more than 97% of local farmers are still small‑scale operators with limited financial and technical capacity.
The self‑sufficiency ratio shows that the country has a surplus in items such as sugarcane, papaya, duck meat and chicken/duck eggs, but remains in deficit for beef, mutton and key cooking ingredients such as chilli, ginger and shallots – and critically, rice, the main staple of the Malaysian diet, much of which is met through imports.
Although cost‑of‑living pressures continue to weigh on the B40 segment, these challenges remain addressable through targeted fiscal policies such as Sumbangan Asas Rahmah, Sumbangan Tunai Rahmah and subsidies on essential goods.
To address climate‑related risks to food‑system stability, the National Food Bank Action Plan 2026 to 2030 is in its final drafting phase and is expected to be rolled out early this year.
The plan aims to enhance food security, reduce food waste by 2030 (aligned with Sustainable Development Goal 12.3) and strengthen the social safety net.
To improve domestic food security, HLIB Research believes the government should pivot away from legacy blanket subsidies towards blended‑finance mechanisms, such as using targeted public grants to de‑risk and unlock private commercial bank loans exclusively for cooperative agritech procurement.
“By institutionalising and adequately funding these cooperative technology hubs, Malaysia can materially remove the capital burden from individual farmers and accelerate high‑tech adoption across the rural ecosystem, thereby strengthening long‑term food‑system resilience,” it said in a thematic report.
Furthermore, the research house added that to protect producer margins and stabilise retail prices, targeted investments into integrated cold‑storage facilities and tech‑enabled logistics are urgently required.
“The food‑waste problem requires systematic integration of circular‑economy principles across the agrofood chain,” HLIB Research noted.
This includes scaling up surplus‑food recovery networks such as Food Bank Malaysia to efficiently redirect edible surplus from the retail and hospitality sectors to underserved communities.
HLIB Research identified Bursa‑listed companies such as QL Resources Bhd
, Yenher Holdings Bhd and Leong Hup International Bhd (LHI) as potential beneficiaries of policy support and structural demand shifts in this space.
It has “buy” calls on the companies, with target prices of RM5.70 a share for QL Resources, RM1.42 for Yenher and 97 sen for LHI.
The research house noted that QL Resources’ RM1.3bil QL Innofood Park in Perak will help address mid‑stream logistics inefficiencies and post‑harvest leakages that continue to erode industry margins.
“QL’s proactive infrastructure build‑out positions it to capture efficiency gains, strengthen supply reliability and compound earnings within a structurally reforming food ecosystem,” it said.
LHI’s vertically integrated poultry‑production model provides a structural buffer, and the group has been deploying capital to modernise its farming infrastructure.
HLIB Research added that LHI’s shift towards modern, controlled farming environments strengthens supply reliability while enhancing long‑term operational efficiency.
Yenher’s move to build a Black Soldier Fly facility and deploy advanced biotechnology solutions is expected to enhance supply‑chain resilience against global commodity shocks and currency fluctuations, strengthening its long‑term competitive positioning.
