THE PADDY AND RICE INDUSTRY IN MALAYSIA REPORT 2024

The Malaysia Competition Commission (MyCC) is an independent statutory body and is Malaysia’s national competition authority (NCA). The MyCC derives its powers, functions, and responsibilities from the Competition Commission Act 2010 [Act 713] to enforce the Competition Act 2010 [Act 712]. Consistent with the functions provided under section 16 of Act 713, the MyCC is mandated to study the paddy and rice industry in Malaysia and assess if there are any competition issues inherent in the industry for possible investigation and enforcement actions. This Industry Study examines and analyzes the paddy and rice industry in Malaysia by looking at the paddy and rice industry value chain to understand the market structure and identify key players in the markets; government measures, including policies, laws, and regulations applicable to the industry; lessons from other countries in how they develop their paddy and rice industries; and potential competition issues inherent and/or arising from the market structure, conduct, and performance of players in the industry. Rice is a staple food in Malaysia, vital for food security and rural livelihoods. In 2023, Malaysians consumed an average of 76.7 kg of rice per person. The country’s 230,119 paddy farmers produced 1.44mn mt of rice from 614,061 ha of land, requiring an additional 1.28mn mt in imports. Malaysia’s rice self-sufficiency level declined from 70% in 2017 to 56.2% in 2023. The paddy and rice industry in Malaysia is shaped by government policies aimed at food security, sustainable production, and farmer welfare. The National Agrofood Policy 2021–2030 (NAP2.0) and National Food Security Policy (DSMN Action Plan) 2021–2025 guide the agricultural sector’s development through initiatives focused on productivity, farmer support, innovation, and environmental sustainability