PETALING JAYA: Fast-moving consumer goods (FMCG) and food and beverage (F&B) manufacturers in Malaysia are facing renewed margin pressure as key input costs reaccelerated in August 2026, according to MBSB Research.
In its latest sector review, the research house noted that the input cost backdrop had become markedly less favourable.
Commodity prices turned more challenging sequentially, driven by notable increases in wheat, which is up 29.5% year-on-year (y-o-y) and up 5.4% month-on-month (m-o-m) to US$26,098 per tonne, raw sugar up 4% y-o-y and up 12.3% m-o-m, crude palm oil (CPO) up 13.5% y-o-y and up 4.9% m-o-m to US$1,182 per tonne, and polyethylene terephthalate (PET) resin up 35% y-o-y and up 4.6% m-o-m to US$1,127 per tonne.
“The surge in PET resin will sustain margin headwinds for bottled water players like Life Water Bhd
and Spritzer Bhd, while higher CPO and wheat prices press flour-based and palm-based product makers like Hup Seng Industries Bhd,” the research house said.
MBSB Research issued “buy” ratings on its top picks, including 99 Speed Mart Retail Holdings Bhd with a target price (TP) of RM4.37, MR DIY Group (M) Bhd at RM2.13, Leong Hup International Bhd at RM1.03, and Nestle (M) Bhd at a TP of RM116.10.
