Improved living standards and more middle income earners in urban areas lead to modest growth in demand for pork, bread and poultry products. This contributed to marginal increase in demand for corn and wheat. Wheat imports are forecast to grow marginally to 1.6 million tons in 2015/16. Although Australian exports the most wheat to Malaysia, US wheat is still preferred by some Malaysian millers as it provides protein and other quality characteristics unavailable in other imported wheat.

The implementation of Goods and Services Tax (GST) in April 2015 and the depreciation of Malaysian currency relative to other major currencies will likely to dampen any increment in demand for corn and wheat.

Wheat S&D

2013/2014

2014/2015

2015/2016

Market Year Begin: Jul 2013

Market Year Begin: Jul 2014

Market Year Begin: Jul 2015

USDA Official

New Post

USDA Official

New Post

USDA Official

New Post

Area Harvested

0

0

0

0

0

Beginning Stocks

337

337

393

274

274

Production

0

0

0

0

0

MY Imports

1.675

1,532

1,600

1,580

1,600

TY Imports

1,675

1,532

1,600

1,580

1,600

TY Imp. from U.S.

239

233

0

230

200

Total Supply

2,012

1,869

1,993

1,854

1,874

MY Exports

164

140

150

140

140

TY Exports

164

140

150

140

140

Feed and Residual

40

40

40

40

40

FSI Consumption

1,415

1,415

1,450

1,400

1,400

Total Consumption

1,455

1,455

1,490

1,440

1,440

Ending Stocks

393

274

353

274

294

Total Distribution

2,012

1,869

1,993

1,854

1,874

Wheat imports are forecast to grow marginally to 1.6 million tons in 2015/16 from 1.58 million tons in 2014/15. Consumption is forecast to remain relatively stable. The government controls the price of general all purpose flour, setting it at RM1.35 (US$0.38) per kilo. Prices for high quality specialty flours are not controlled. Demand for flour is expected to be in line with population and economic growth.

Australia remains the biggest exporter to Malaysia, holding about 60 percent market share.

Wheat Imports:

Import Trade Matrix

Country

Malaysia

Commodity

Wheat

Time Period

Year Ending June

Units:

1000MT

Imports for:

2013

2014

U.S.

127

U.S.

232

Others

Others

Australia

855

957

India

117

91

Canada

128

111

Total for Others

1,100

1,159

Others not Listed

123

141

Grand Total

1,350

1,532