PETALING JAYA: Local food manufacturers are facing mounting cost pressures as recurring year-end shipping delays force earlier ordering and push logistics expenses higher, says the Malaysian Food Manufacturers Association.
Its president Ding Hong Sing said delays in November and December have become an annual issue, requiring manufacturers to place orders as early as three to six months in advance, inevitably increasing shipping costs.
He said the industry is also grappling with higher operating expenses this year, including wage increases, rising input prices and a mandatory 2% Employee Provident Fund (EPF) contribution for foreign workers.
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“All of these increases and additional EPF contributions happened in 2025, so please keep that in mind,” he said.
At the same time, Ding said cheaper products from China, coupled with more Chinese companies setting up operations in Malaysia, have intensified competition for local manufacturers.
To strengthen the sector, he urged the government to step up support for small companies through skills training, particularly in information technology and artificial intelligence, which he said are crucial for improving productivity and long-term competitiveness.
“AI is where the money is, and we can boost our industry through it,” he added.
Meanwhile, Mydin Mohamed Holdings Bhd managing director Datuk Ameer Ali Mydin said there have been no delays in the supply of mandarin oranges, and festive goods are arriving on schedule.
Ameer said the supply for mandarin oranges has arrived, while supplies for Hari Raya Aidilfitri are also coming in, with the fasting month less than two months away.
“It is a matter of planning ahead and taking a slight calculated risk,” he said, adding that overly pessimistic views could hinder preparations.
Looking ahead, Ameer said Mydin expects a stronger economic outlook in 2026, supported by the continuation of the government’s MySara programme and an additional allocation of RM2bil for Chinese New Year cash aid.
He noted that this funding would contribute to stimulating consumer spending from the grassroots level.
He added that easing tariff war concerns and a stronger ringgit, hovering near RM4.05 against the US dollar, were further positive developments.
