Malaysia is making a big bet on cocoa. With prices soaring 141% year-on-year, the government is doubling down on efforts to boost production and cut reliance on imports.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the country produces just 450 tonnes of cocoa beans annually, a sharp decline from 300,000 tonnes two decades ago.
Meanwhile, Malaysia imports 500,000 tonnes a year to feed its processing industry, he said.
“Cocoa is a commodity that, if properly managed, can be a major export,” Johari said Monday at the Malaysian Cocoa Board (MCB) Excellence Appreciation Night.
Now, the government wants to turn things around.
A five-year Cocoa Planting Promotion Programme (2025-2029) kicks off this year with RM4 million in funding, targeting 350 hectares of new plantations, said Johari.
A separate RM9.5 million fund (2024-2026) will help rehabilitate 2,126 hectares of cocoa farms, supporting 3,296 smallholders with fertilisers, disease control, and farming tools.
“With new technology, many diseases can be overcome, and more cocoa can be produced, making it a major export source in the future,” Johari said.
The push comes amid booming demand. Malaysia’s cocoa and chocolate product exports jumped 64% in 2024, reaching RM13.5 billion, up from RM8.2 billion in 2023.
Malaysia is already a global cocoa powerhouse, ranking fourth in grinding capacity with 383,000 tonnes processed in 2024, trailing Ivory Coast, the Netherlands, and Germany.
Johari said Industry players are now taking notice of the country’s potentials.
Malaysian Kuwaiti Investment Corporation, Permaju Industries, United Malacca Berhad, and Sabah Land Development Board are investing in 714 hectares of large-scale cocoa plantations.
Malaysia is gearing up to host the International Cocoa Fair (MICF 2025) this May in Kota Kinabalu, aiming to attract global buyers and investors.
“We need industry collaboration to ensure a more commercial and competitive scale of cultivation,” Johari said.
The country’s cocoa footprint stands at 6,123 hectares, with plans to expand by 3,000 to 4,000 hectares in the coming years. – February 11, 2025.
