Agrofood and Processing

Malaysia is an emerging global food producer where nearly 75% of food exports are processed food and beverage products. Johor has always been a major food producer in the country, primarily in cocoa products, palm oil products and pineapple products. In 2015, Johor was the largest food producer for poultry, eggs, and vegetables in the country. Recently, the Johor government has been expanding its agriculture and food production and turning it into a premier hi-tech agrofood and processing hub. In 2015, the Johor government allocated RM1.3 million to assist agrofood and processing entrepreneurs. The fund was channelled to the Johor Agriculture Department for activities under the Agro-based Industries Development Programme, with the purpose of developing and strengthening small and medium enterprises involved in agro-based industries.

Figure: A&P Investment Opportunities in Johor

Processing, Packaging and R&D A&P Centre of Excellence
  • Palm oil-based products
  • Cocoa-based products
  • Herbal and plant-based products
  • Halal derivatives
  • Livestock and aquaculture produce

Close proximity to Singapore’s Changi Airport (1 hour drive)

  • Agricultural biotechnology
  • Food technology
  • Halal testing and certification
  • Molecular marker discovery

The state government recognises that there is a need to upgrade the food industry in Johor to enable it to evolve into a dynamic cluster. Three potential clusters were identified to drive this upgrade: Johor Bahru, Batu Pahat, and Muar. The upgrading will involve:

  • Strengthening the role of the government to provide stability and efficient basic infrastructure
  • Providing enabling conducive environment for learning and innovation in the food industry
  • Ensuring that the food cluster is globally connected in terms of market, value chain, and supply chain
  • Strengthening capacity of key suppliers
  • Ensuring connectivity and coordination among the major players in the food industry as shown in the following cluster model.

Through this upgrading, Johor will be in a better position to partner with investors to tap into future A&P growth markets which include:

Healthy Food Healthy food are goods which are more nutritious, fresh, natural, and safe. Example includes organic food.
Convenient Food Due to changes in lifestyle, consumers are now demanding for food that is easy-to-prepare, ready-to-cook, and ready-to-eat.
Minimally Processed Food Greater concern for increased usage of food additives and preservatives, retention of nutritional value and fresh-like quality of food, have created demand for minimally processed food which are perceived to be more nutritious and natural.
Food with Wellness Industry The human wellness industry is an emerging industry with an estimated current annual global value of more than US$ 1.3 trillion. The wellness industry involves products and services intended to improve general wellbeing such as health, better appearance, slow down the effect of ageing, brain function, and reduce the risk of developing chronic diseases.
Natural Food Ingredients The consumer trend for more natural and healthyl food products has also increased the demand for more natural food ingredients such as natural colours, flavours, preservatives, emulsifiers, stabilisers, acids and enzymes produced from plants and microbial sources.
Halal Food & Halal Ingredients Increased awareness on halal related issues and the sizeable world Muslim population have created a tremendous market for halal processed food and halal food ingredients. This, together with Malaysia’s aspiration to become an international halal food hub, has made halal food an emerging segment with very good potential to be exploited.