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Malaysian F&B market increasingly sophisticated

Source:Ringier Release Date:2011-07-13 857
Food & Beverage
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Changes in consumer lifestyle and government emphasis encouraging exports of processed foods are the market drivers of the country's food processing industry

? Robyn Mackenzie | Dreamstime.comMALAYSIA continues to be a net importer of food products with annual imports of more than $5 billion, including consumer-oriented and fishery product imports of $3.5 billion. With per capita income of over $6,000 and a middle and upper class making up 61% of the population, Malaysia shows good potential for growth as a market for consumer high value products.


The country is a multiracial society consisting of three major races: Malays account for 60% of the population, with Islam as the official religion; slightly more than 20% of are Chinese who may be Buddhist or Christian; and Indians form 7.1% of the population and they are largely Hindus. There is also a sizeable expatriate population and Malaysia is a popular tourist destination for Asia, the Middle East and Europe.


Religious affiliation affects food consumption in Malaysia. Muslims do not eat pork, and only eat meat products that have been certified halal, and many Buddhists and Hindus do not eat beef. Thus, halal chicken meat is popular amongst all consumers and Malaysia has one of the world's highest per capita consumption rates at 35 kg.


With rising affluence and education levels, consumers' shopping and eating lifestyles have changed drastically over the years. Malaysians, especially in urban and cosmopolitan areas, prefer to shop in modern retail outlets, which offer them one-stop shopping options. However, traditional stores such as provision and grocery shops, which are conveniently located in residential areas and workplaces, are still popular.


Malaysians are adventurous in their eating habits. Eating out is common and is relatively inexpensive.

Demand for halal foods


With a predominantly Muslim population, the demand for halal foods by Malaysian consumers has increased over the years. All beef and poultry products must be certified halal and the products must originate from slaughterhouses that have been inspected and approved by the Malaysian veterinary and religious authorities. An Islamic Centre approved by the Malaysian Islamic Development Department (JAKIM) must supervise the slaughter and processing and issue the halal certificate for meat and poultry.


Halal is fast becoming recognised as a new benchmark for quality, hygiene and safety for non meat-based products. Food products and ingredients that have halal certificates have added marketing value in Malaysia. Hence, most retailers, foodservice operators and food manufacturers are inclined to ask for halal certificates for non-meat based food products and ingredients.


Food standards and regulations
Malaysian health and food labelling requirements are fairly liberal. The labelling requirements specify that imported and domestically produced processed food items must be labelled in English or Bahasa Malaysia. Labels must contain the following information:


* An appropriate description of the product


* A list of ingredients in descending order of proportion by weight


* If the item contains any animal product, a statement as to the presence of such animal products (beef, pork, lard, gelatines, etc.)


* If the item contains any alcohol, a statement as to the presence of alcohol


* The minimum net weight of the product; and in the case of a product packed in liquid, the minimum drained weight of the food


* The name and address of the manufacturer


* The name and address of the importer (this can be affixed at the time of import)


* A statement of shelf life or expiry dates


In addition to the general labelling requirements above, nutritional labelling is compulsory for the following foods: prepared cereal foods; various types of bread; variety oFootwear

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