Manya Rathore
Research expert covering India
Agriculture in Malaysia - statistics & facts
As Malaysia struggled with erratic weather pattern from heatwave to unpredictable torrential rain, the country’s agricultural sector had to brace itself for lower crop production that could cost millions of Malaysian ringgit. Agriculture is undoubtedly one of the most important industries in the country, contributing around 7.8 percent to Malaysia’s gross domestic product (GDP) in 2023.
Malaysia is well known as the second-largest producer of palm oil in the world. The country also produces other valuable agricultural commodities, including natural rubber and Malaysia’s staple food, rice. Nevertheless, challenges like drought, flooding, and other natural disasters caused mainly by climate change, as well as labor shortages, have put the agriculture sector at risk.
Food crops, including rice, fruits, and vegetables, were the second most important commodities. However, the country’s production of food crops was not enough to meet local demands. Malaysia’s imports of rice reached more than 1.4 million metric tons in 2023, making up about 30 percent of the country’s demand for the staple food commodity.
Livestock was also essential for the country’s agriculture sector, with the poultry industry’s contribution to GDP reaching around 10.73 billion Malaysian ringgit in 2024. That same year, chicken was the most popular type of meat among the Malaysian population, of which 63.5 percent are Muslims. The per capita consumption of poultry in Malaysia was ten times higher compared to other livestock products.
Moreover, the country also had to deal with a shortage of foreign workers. Many large palm oil plantations mainly rely on labor force from neighboring countries. There were around 474,000 non-Malaysians employed in the agriculture sector in 2023, a decrease compared to the previous year. The temporary labor shortage could have an impact on Malaysian palm oil production.
The future of the agriculture sector in Malaysia is still uncertain amidst current challenges. The impending monsoon season, which will bring heavy torrential rain and potential flooding, could negatively affect the agriculture sector. Nonetheless, with additional efforts from the Malaysian government to support this sector, the agriculture industry will likely survive these challenges.
Malaysia is well known as the second-largest producer of palm oil in the world. The country also produces other valuable agricultural commodities, including natural rubber and Malaysia’s staple food, rice. Nevertheless, challenges like drought, flooding, and other natural disasters caused mainly by climate change, as well as labor shortages, have put the agriculture sector at risk.
Key agricultural commodities
The agriculture industry in Malaysia relies heavily on the farming sector and its cash crops, palm oil and rubber. These crops are grown mainly for their commercial value to be exported all over the world. The value of Malaysia’s agricultural exports amounted to around 160 billion Malaysian ringgit, with palm oil and palm-based products as its major export commodities.Food crops, including rice, fruits, and vegetables, were the second most important commodities. However, the country’s production of food crops was not enough to meet local demands. Malaysia’s imports of rice reached more than 1.4 million metric tons in 2023, making up about 30 percent of the country’s demand for the staple food commodity.
Livestock was also essential for the country’s agriculture sector, with the poultry industry’s contribution to GDP reaching around 10.73 billion Malaysian ringgit in 2024. That same year, chicken was the most popular type of meat among the Malaysian population, of which 63.5 percent are Muslims. The per capita consumption of poultry in Malaysia was ten times higher compared to other livestock products.
The challenge of climate change
Climate change and natural disasters have become the main challenge farmers in Malaysia now have to face. In 2024, the financial damage caused by flood to the agriculture sector reached more than 185 million Malaysian ringgit. The government has allocated 3.1 billion Malaysian ringgit in the 2025 budget to help mitigate the impact of extreme weather phenomenon this year.Moreover, the country also had to deal with a shortage of foreign workers. Many large palm oil plantations mainly rely on labor force from neighboring countries. There were around 474,000 non-Malaysians employed in the agriculture sector in 2023, a decrease compared to the previous year. The temporary labor shortage could have an impact on Malaysian palm oil production.
The future of the agriculture sector in Malaysia is still uncertain amidst current challenges. The impending monsoon season, which will bring heavy torrential rain and potential flooding, could negatively affect the agriculture sector. Nonetheless, with additional efforts from the Malaysian government to support this sector, the agriculture industry will likely survive these challenges.
