GIEWS Country Briefs

Reference Date: 21-January-2013

Harvesting of the 2013 paddy crop in Sabah state in the north and Sarawak state in the south commenced in mid-December and will continue until mid-May. Given above-average rainfall during the growing period, adequate provision of subsidized seeds, fertilizers and yield promoting inputs favourable prospects are projected for the current paddy crop. Additionally, the Government of Malaysia has announced the establishment of four new granaries in Sabah, Sarawak and Pahang states, which are expected to expand the area planted to paddy by 19 000 hectares i.e. by about 2.5 percent. The 2012 paddy crop, harvested earlier in the year, is estimated at a record level of 2.7 million tonnes, slightly above previous year’s record output, reflecting mainly favourable weather and subsidised inputs to farmers through government programmes. However, the domestic production meets only half of the national cereal requirements.

Practically all wheat and maize are imported. Total cereal imports in 2012/13 marketing year (July/June) are forecast at normal level of about 5.4 million tonnes, comprising 3.1 million tonnes of maize, mostly for livestock feeding, 1.2 million tonnes of wheat and 1.1 million tonnes of rice.

According to the Department of Statistics the year-on-year increase in the consumer price index (CPI) in December 2012 was recorded at 1.2 percent. The food and non-alcoholic beverages component of the CPI increased by 2 percent while the non-food component rose by 0.9 percent respectively.