This article first appeared in The Edge Malaysia Weekly on June 22, 2026 - June 28, 2026

THE Ministry of Agriculture and Food Security has set an ambitious target — a self-sufficiency ratio (SSR) of 100% for fresh milk production by 2028. To achieve this target, the ministry has allocated RM30 million to expand the livestock population and provide modern equipment.

FGV Holdings Bhd, a 90%-owned unit of the Federal Land Development Authority (Felda), invested in a dairy farm in 2020, a move that appeared to be in line with the ministry’s ambition. However, the dairy business turned sour after five years.

The operation housed under FGV Dairy Farm Sdn Bhd was shut down and the outstanding sums owed to more than 100 vendors and farmers have yet to be settled. Bank Pertanian Malaysia Bhd (Agrobank) wants to auction off the farms to recover the outstanding loans (see “Bitter lessons from dairy venture with Felda” on Page 54).

The SSR for fresh milk production stood at 66.7% in 2024, with the country still dependent on imports to meet domestic needs. It is encouraging that the SSR has increased over the years, from 57.3% in 2022, as local production grew.

In tandem with this, the import dependency ratio (IDR) — which measures the level of the nation’s exposure to risks associated with global supply chain disruptions — declined to 57.9% in 2024 from 63.6% in 2022.

The SSR, according to chief statistician Datuk Seri Dr Mohd Uzir Mahidin, functions as a key indicator in measuring the nation’s food supply security. A high SSR value signifies that local production is able to meet domestic demand, which reduces reliance on imports.

Nevertheless, a high SSR does not necessarily reduce imports or result in a falling IDR. This is because food producers may also export more, particularly when they can fetch higher prices elsewhere.

Concerns about food security have reignited again following the war in the Middle East. The recent reopening of the Strait of Hormuz has brought relief to economies globally, but uncertainties still linger given the fragile state of geopolitics in the current environment.

While shelves are stocked and there is no shortage of essential items, the worry now is that the blockage over the last few months, which has driven the prices of items such as animal feed and fertiliser higher, could potentially impact the production of food supply.

The last time the topic of food security raised such concerns was during the Covid-19 pandemic, when delayed shipments and the corresponding higher prices of food items exposed just how much Malaysia relies on imported food supply.

The country’s food import bill is huge. In 2024, it stood at RM93.8 billion, according to the Department of Statistics Malaysia (DOSM). This was an increase of 19.1% over the previous year, reflecting the continued reliance on external sources for several essential commodities.The amount was RM55.5 billion in 2020 and RM42.64 billion in 2014.

While one of the main reasons for the high import bill in 2024 could be the foreign exchange rate — the US dollar strengthened significantly against the ringgit then — the fact is that Malaysia still depends heavily on imports for food.

“Malaysia is considerably reliant on external sources to supplement its food supply across most key food commodities. Should input supply run low or a partner country tightens supply, Malaysia can face compounding risks to both domestic production capacity and external supply continuity,” said Khazanah Research Institute (KRI) in a recent discussion paper titled “The Geoeconomics of Food Dependencies in Malaysia/Southeast Asia”.

In terms of SSR, Malaysia is moderately self-sufficient in fish, fruits and milk, with ratios of between 70% and 80%, but still relies on a significant portion from imports to feed domestic demand.

One example is cuttlefish, for which Malaysia has an SSR of 75.1% but also an IDR of 73.1%, according to DOSM’s latest Supply and Utilisation Accounts Selected Agricultural Commodities, 2020-2024 report.

However, if we look at a Malaysian household’s pantry staples, there is a stark reminder of why the country needs to pay more attention to food security.

Rice, for which consumption per capita stands at 75.7kg per year, had an SSR of 52.9% in 2024, lower than the 62.1% in 2020. This comes as rice production fell by 5% to 1.36 million tonnes in 2024 from 1.43 million tonnes in 2023. Correspondingly, the country’s rice imports increased by 17% to 1.5 million tonnes in 2024.

Notably, paddy production fell in 2024 by 5.3% to 2.06 million tonnes, from 2.18 million tonnes in 2023, according to data from DOSM. 

Domestic rice production has actually declined from its peak in 2018, which can be attributed to the shrinking paddy areas in Malaysia and the loss of paddy productivity. Changing weather patterns have also affected production, while overworked fields may have caused soil to be infertile.

The concentration of Malaysia’s rice production in the northern states has been highlighted as a risk for the country — if disease were to strike or adverse climate change were to hit, production would be badly affected.

Staples of Malaysian cooking such as garlic, shallots and onions are fully imported. Beef has an IDR of 83.5% and mutton 92.1%. Meanwhile, mangoes had an IDR of 116.7% and an SSR of 20.6% in 2024.

Notably, there are ongoing initiatives by local farmers, with the support of the government, to reduce dependence on imports of onions. The target is to reduce imports by up to 30% by 2030.

By the Food and Agriculture Organization’s definition, food security has four dimensions — food availability (supply), food access (access to adequate resources), utilisation (obtaining sufficient nutrition) and stability (access to sufficient food at all times).

A researcher points out that the increase in food imports can be a means of ensuring that food is always available and affordable for most consumers. He says if food is economically inaccessible to certain segments of the population because of price, despite a high SSR, it will not mean strong food security.

While import dependency is not necessarily “bad” in itself, KRI says import sources need to be diversified.

“Import dependency is not inherently a weakness if import sources are adequately diversified, such that no single supplier can significantly disrupt supply continuity,” it adds.

One often-cited example is Singapore, which imports more than 90% of its food. However, its imports are diversified, from more than 180 countries in 2025, as part of its food resilience strategy.

KRI says Malaysia’s imports of rice, chicken, beef and milk are concentrated in four or fewer suppliers. Notably, nearly three-quarters of beef supply comes from India and two-thirds of vegetable supply is from China, indicating single-country dependency.

Sourcing from fewer suppliers offers operational efficiencies and cost advantages, but exposes the country to immediate supply or price shocks in the event of supply cut-offs, price control by the main supplier or changes in the import partner’s national policies due to geopolitical dynamics, says KRI.

As Malaysia has an ambitious vision under its National Food Security Policy 2030 to transform its agrofood system into one that is efficient, resilient, sustainable and inclusive by 2030, continuous efforts need to be made to ensure the country’s food security.

Read also:
Cover Story: Bitter lessons from dairy venture with Felda
Cover Story: Years of costly missteps at Felda and FGV Holdings

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