The Malaysian poultry industry has emerged as a significant economic contributor, demonstrating resilience and growth amidst global challenges. Analysts have noted that lower feed costs and a strengthening ringgit are key positive factors enhancing the industry's performance. Feed costs, which primarily consist of corn and soybean meal, account for approximately 70% of production expenses [57d00efe].
Tan Cheng Wen from Tradeview Capital has expressed optimism about improved profit margins for local poultry companies, citing the recent decline in feed prices as a major advantage. In October 2024, soybean prices dropped 18% year-on-year to US$350 per tonne, while corn prices fell 14% to US$17,319 per tonne [57d00efe].
Despite these positive trends, the industry faces challenges, including the potential removal of subsidies and increasing competition from imported frozen chickens, particularly from Thailand. Major players in the Malaysian poultry sector include Leong Hup International Bhd, QL Resources Bhd, Lay Hong Bhd, CAB Cakaran Corporation Bhd, and Teo Seng Capital Bhd [57d00efe].
The Malaysian ringgit, which averaged 4.30 against the USD in October, has shown slight weakening compared to 4.26 in September. However, MIDF Amanah Investment Bank forecasts that the ringgit could strengthen to around 4.03 by the end of the year, which would further benefit the poultry industry by reducing import costs [57d00efe].
As the government continues to focus on economic reforms and attracting foreign investments, the poultry sector remains a vital component of Malaysia's economic strategy. The anticipated benefits from reduced feed costs and stable commodity prices are expected to support the industry's growth through 2025, reinforcing its role as a key economic pillar [57d00efe].