Up to 20% to 50% of fruits and vegetables are lost in Malaysia's food supply chain due to inadequate packaging, storage, and transport, according to the Draft National Food Security Blueprint (NFSB) 2030. The document, published by the Ministry of Agriculture and Food Security (KPKM), defines food loss as the reduction in edible food mass during production, post-harvest, and processing before reaching consumers.
The report identifies poor handling practices, weak infrastructure, and limited funding as key contributors. A lack of cohesive cold chain facilities, outdated transport systems, and poorly maintained roads further increase spoilage during transit, particularly for temperature-sensitive crops. Only 14% of stakeholders use cold storage, citing barriers such as cost, limited capacity, and location.
Wet markets, described as central for food access, face obsolete infrastructure and weak waste management systems, affecting food quality and safety. Collection and packing centres also lack proper sorting, packaging, and pre-treatment facilities, resulting in about 27% of fruit and vegetables being sent directly to wholesalers without post-harvest handling.
Land and water availability are also highlighted as pressing concerns. More than 103,000 hectares of farmland were idle in 2024, particularly in Selangor and Pahang, due to fragmented ownership and inheritance disputes. At the same time, agricultural water use faces growing competition and climate-related challenges such as droughts and floods. The NFSB cites a US$48 million annual maintenance gap in the Muda Agricultural Development Authority (MADA) irrigation scheme, leading to inconsistent water supply for paddy farming.
Climate change, with more frequent droughts and erratic rainfall, is expected to place further strain on crop yields. Although Malaysia receives high annual rainfall, water recycling and rainwater harvesting remain underutilised.
The report also notes limited uptake of technology among smallholders. Precision agriculture, Internet of Things applications, and digital supply chain tools are not widely adopted due to high upfront costs, lack of training, and weak rural digital infrastructure. Resistance among traditional producers and underfunded research also restricts broader use.
Malaysia has signed 16 free trade agreements, including the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). However, the NFSB states these do not address systemic food chain issues, such as sustainable production, waste reduction, and nutrition. It calls for policies that incentivise nutrient-rich local production and improve affordability for vulnerable groups.
Source: CodeBlue