Malaysia’s food security has strengthened, but heavy reliance on imported food and agricultural inputs leaves the country vulnerable to external shocks, MBSB Research has said.
The research house said in a report on Thursday that geopolitical conflicts could push up the costs of energy, fertiliser, animal feed, freight and packaging, with possible knock-on effects on agricultural yields, food supplies and prices in 2027.
It said climate change, El Niño, export restrictions and currency fluctuations could further increase the pressure on food availability and affordability.
MBSB said the combination of adverse weather and high input costs could be particularly challenging for producers, as lower output could coincide with elevated fertiliser, feed, energy and logistics costs.
According to the report, Malaysia depends on imports for rice, wheat, livestock products, animal feed and some vegetables, making domestic food availability and prices susceptible to production losses in exporting countries.
The report said Malaysia’s food and beverage imports increased from about 42 billion ringgit in 2014 to 100 billion ringgit (US$24.54 billion) in 2025.
It noted that although imports increased steadily before 2020, the pace accelerated after 2020, driven by higher imports of primary agricultural commodities and processed food products.
MBSB said food inflation could come under renewed upward pressure from rising agricultural input costs, especially fertiliser prices.
It added that adverse weather conditions could also reduce domestic production and disrupt food supplies, further exposing consumers to price pressures.
