KUCHING: Sarawak’s food industry faces challenges in achieving self-sufficiency as the latest report from Khazanah Research Institute (KRI) reveals a high food trade deficit.
The report, which was published in December, found that Sarawak’s imports were valued at RM40.9bil in 2020, showing a decrease of 8.3 per cent from the previous year.
However, the average increase of 4.3 per cent since 2013 showed a consistent demand for food imports, particularly in premium and temperate types of fruits and vegetables that cannot be grown locally.
Rice imports in Sarawak remained high, with a value of RM270mil, along with other major food items such as meat and dairy products.
On the other hand, Sarawak’s total exports were valued at RM77.2bil in 2020, with food constituting only 1.3 per cent of the total export.
The export of food products such as rice, fruits and vegetables was generally low compared to import while seafood products remained at an average of RM300mil.
As a result, Sarawak has experienced a high food trade deficit of RM3.7bil since 2013.
The report added that trade bias was a significant factor that hindered the local food industry, with most shipping companies preferring Port Klang over the ports in East Malaysia.
This was partly due to the lack of backhaul cargo, causing shipping companies to double their goods charges to cover the freight rate, making trade to East Malaysia less favourable.
The stringent requirements of obtaining a permit to transport certain food items such as rice from Peninsular Malaysia to East Malaysia and vice versa further add to the trade bias issue.
Carriage charges were also imposed due to the poor infrastructure of the ports, including high insurance owing to the instability of maritime security, especially in Sabah.
The findings from the KRI report provided insights into the challenges faced by the food industry in Sabah and Sarawak, highlighting the need for greater support and investment in the region to uplift food security and reduce trade bias.
The 200-page report was launched by KRI chairman Tan Sri Nor Mohamed Yakcop in Kuala Lumpur on Tuesday (Jan 31). It can be accessed for free at https://www.krinstitute.org/https://www.krinstitute.org/.
