INTERACTIVE: Malaysians have highest grocery bill in South-East Asia
PETALING JAYA: Malaysians are experiencing a heavy burden when it comes to rising food prices, with data showing that they spend more on groceries than any South-East Asian country.
Data from the US Department of Agriculture (USDA) Economic Research Service shows that Malaysia's consumer expenditure on food at home was highest in the region in 2023 at US$1,940 per person per year.
The USDA figures are not adjusted for inflation or differences in living costs between countries.
According to Bank Negara Malaysia's exchange rate in 2023, the US$1,940 figure for Malaysia is equivalent to RM8,848.
However, at current exchange rates, it is equivalent to RM8,286.
Singapore was second at US$1,831, followed by Thailand (US$1,108), Philippines (US$1,070) and Cambodia (US$898).
Experts said several factors explain why Malaysians spend a relatively high amount on food at home compared to other countries in the region.
They include a reliance on food imports, a weaker Ringgit and farm labour shortages.
Other reasons include the rising cost of input in food production such as fertilise and animal feed, monopolies and oligopolies in food production, as well as low farm productivity.
'Malaysia's elevated food cost per person relative to its Asean counterparts points to the need for concerted efforts by the government and private sector to expand food production and raise farm productivity,' said Sunway University economics professor Dr Yeah Kim Leng.
He said other complementary actions include dismantling monopolies and liberalising food markets, reducing transport and storage costs and improving supply chain efficiencies to bring down food prices.
He said Malaysia's higher food expenditure per person at home compared to Asean countries with lower per capita income can also be explained by its higher income level.
'However, despite income per capita that is in multiples that of Malaysia, Singapore's food expenditure per capita is about the same as Malaysia's during the 2017 to 2023 period, with the 2023 figure dipping below Malaysia's in 2023,' he said.
While the data specifically does not take inflation into account, Yeah noted that the food component in Malaysia's consumer price index (CPI) basket has been experiencing higher inflation averaging 3.1% annually between 2020 and 2024 compared to the overall CPI inflation of 1.8%.
Khazanah Research Institute's research associate Dr Teoh Ai Ni said the total amount spent on food consumed at home would vary depending on how frequently individuals spend eating at home.
She said Malaysians also spend a larger portion of their monthly spending for food on food at home compared to Singaporeans.
'Data from the Household Expenditure Survey 2022 shows that Malaysian households spent about 48% of their total monthly food expenditure on food away from home, with 52% spent on food at home.
'In comparison, Singaporean households spent 68% of their food expenditure on food away from home.'
'This is why the consumer expenditures spent on food at home for Singapore is lower than that of Malaysia, and it does not imply that food in Malaysia is more expensive,' she said.
She noted that the use of US dollar in USDA's data as the unit for comparison does not take into account the variations in the current strength or cost of living, nor does it equal purchasing power.
Fellow research associate at KRI, Nik Syafiah Anis said Malaysia is also one of the more food import-dependent nations in Asean, which means its food system is vulnerable to global supply chain disruptions and external price shocks.
She said other Asean countries such as Thailand and Vietnam have transitioned into major agricultural powerhouses, with Vietnam's food exports surging more than 15-fold between 1995 and 2018, driven by rice, seafood, and coffee.
She in comparison, Malaysia's food import bill reached RM75.6 billion in 2022 and it remains a net importer of essential food items, particularly animal or vegetable fats and oils, cereals, and dairy products.
'One key dimension of this dependency is the country's reliance on imported animal feed - particularly corn and soymeal, which are key inputs in poultry, livestock, and aquaculture production.
'For example, Malaysia imports around 95% of its corn needs, largely from Argentina, Brazil, and India. This includes corn for feed and food, seed, and industrial (FSI) use,' she said.
She said over-reliance on imported feed has a trickle-down effect on domestic food prices.
She added that with global disruptions such as geopolitical tensions or poor harvest due to climate change, feed prices can spike, leading to higher prices for chicken, eggs, fish and meat at the consumer level.
Meanwhile, Teoh said the share of income spent on food depends on wages and food expenditure.
Malaysians' portion of food spending is comparatively lower than most other countries in the region.
'The differences are attributable to a combination of factors, including income level, food prices and food consumption patterns.
She said that as income rises, the share spent on basic necessities like food would likely decrease while the share of spending on discretionary items like entertainment and recreation would likely to rise.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Barnama
5 hours ago
- Barnama
Ties Within BRICS Strengthening, Mutual Trade Growing
ST. PETERSBURG, June 20 (Bernama-RIA Novosti) -- Russian President Vladimir Putin said on Friday that ties within BRICS are strengthening and mutual trade is growing, with the trade turnover of the participating countries already exceeding US$1 trillion. "Special attention is being paid to strengthening ties within BRICS. The mutual trade turnover between our countries has already exceeded US$1 trillion and continues to grow. All of these are elements of a global growth platform. 'And they are based on the key principles of BRICS. And this is consensus, parity, and consideration of interests towards each other," Putin said at a plenary session of the 2025 St. Petersburg International Economic Forum (SPIEF), Sputnik/RIA Novosti reported.
Malaysia Sun
6 hours ago
- Malaysia Sun
Piyush Goyal's statement on India ASEAN Trade is unwarranted, says former Union Minister Anand Sharma
ANI 20 Jun 2025, 15:09 GMT+10 New Delhi [India], June 20 (ANI): Former Union Commerce & Industry Minister of India, Anand Sharma, on Friday said in a statement that the statement by Commerce Minister Piyush Goyal on 'belittling India ASEAN Trade Agreements is unwarranted, ill-advised and unfortunate.' Anand Sharma believes that both India and ASEAN has been together for three decades engaged in a multifaceted relationship which is mutually rewarding and the Association of Southeast Asian Nations, is a regional bloc of ten Southeast Asian countries. Formed in 1967, its primary goals are to foster economic growth, social progress, and cultural development, while also promoting regional peace and further believes that this relationship is important for 'Look East policy to deepen and diversify India's relations with a region that is economically vibrant and of enormous geo-strategic importance for engagement with the Asia-Pacific region.''Piyush Goyal's statement terming the Trade agreement with ASEAN as silly and labelling these counties as B team of China is irresponsible and insulting. He has forgotten, that President of Indonesia Prabowo Subianto was the chief guest for 2025 Republic Day Parade,' Anand Sharma said. The former Union Minster in his statement also emphasized that, 'trade in goods with ASEAN counties also includes essential imports: Iron ore and Coal from Indonesia, Palm oil from Malaysia and Indonesia, Oil - Petroleum products from Brunei Dares Salam and Malaysia and pulses from Mayanmar.''It needs mention that ASEAN is India's 4th largest trading partner accounting for over 11% of India's total global trade with bilateral trade at 120billion USD and accounts for over 11% of India's Exports. FDI inflows from ASEAN to India account for over 18% of total FDI inflows since 2000,' he further about the Commerce Minister, he also said that, 'Commerce Minister should be prioritising strengthening trade relations with partner countries and not insulting them while bending backwards to negotiate a suboptimal trade agreement with USA on its terms.' (ANI)
New Straits Times
6 hours ago
- New Straits Times
NST Leader: Healthcare burden
Few wage earners, especially Gen Z and millennials, seem concerned about saving for retirement. They view a nest egg as a strange concept, believing it's the the Employees Provident Fund's (EPF) responsibility. Their main concern is current spending, not on big purchases but on daily essentials — utilities, Internet data, rent, food, clothes, transportation and family support. Whatever little left of their monthly salaries goes towards leisurely pursuits. Even with an inflationary economy, these expenditures have bumped Malaysian consumer annual spending by five per cent, reaching RM904.6 billion, according to one study. This heavy spending has driven consumption growth back to pre-Covid-19 levels, supported by a rebounding economy that mirrors previous consumption patterns. Apparently, this RM904.6 billion in spending is still insufficient, especially for significant expenses that monthly salaries can barely cover. This has led to calls for the EPF to expand Account 2 for medical insurance, in addition to existing withdrawals for education, housing and healthcare. Are Malaysians burdened by medical insurance costs? Premiums can range from RM100 to more than RM2,500 monthly, depending on age, health condition, coverage and policy terms. Medical inflation in Malaysia is significant, at a high rate of 12.6 per cent. Consequently, falling ill without insurance is difficult, but hospitalisation — unless it's a government–subsidised facility — is almost unaffordable. Many Malay-sians, preferring smoother and faster admittance, opt for expensive private hospitals even though diagnosis and treatment quality are comparable to public facilities. Given the rising medical and living costs, the demand to widen Account 2 withdrawals is understandable. If approved, this expansion could significantly improve medical insurance coverage and take a big weight off the national healthcare system but it would also inevitably deplete EPF savings, particularly if funds are spent on non-essential or poorly chosen insurance plans, a risk further aggravated by aggressive marketing from health insurance companies. Quantifying the EPF's potential allocation for medical insurance withdrawals is challenging, but it would likely be substantial given that nearly everyone might apply. While previous figures show personal medical insurance coverage among Malaysians ranging from 22 to 45 per cent, a 2024 survey reported that 42 per cent have no coverage at all. If approved, the EPF must set clear guidelines on eligible insurance types and treatments. At the same time, contributors need to understand the long-term trade-offs of prematurely depleting their retirement funds. Ultimately, the quickest way to ensure coverage is to view medical insurance much like rent: costly but necessary. Perhaps Malaysians could redirect some funds from their monthly budget or "unnecessary" spending. Such choices would be difficult. Still, EPF contributors will likely argue that present survival is more relevant than worrying about the future. This perspective stems from an emerging philosophy of "retired but still working", a reality already taking hold.
