Using Porter's Five Forces Model Analyze Food Industry Malaysia

Market Watch Malaysia 2010
FOOD INDUSTRY
Overview
With an annual average of 20% export surplus, Malaysia is one of the 20 largest export nations worldwide and is ranked 28th out of 121 countries by the “Global Enabling Trade
Report 2009”, published by the World Economic Forum. Malaysia’s total trade in 2008 amounted to RM 1,185 trillion, which depicts an increase of 6,8% compared to 2007 trade balance; exports even rose 9,6%, while total imports grew by 4.9% to RM 504.57 billion.
But the weak global markets also affected Malaysian trade in 2009. In the first 6 months of
2009, total trade accounted for RM 441.75 billions, decreasing of about 30% in comparison to the first half of 2008. The estimated exports of 2009(January-August) are RM347.1 billion; total imports amounting RM270.5 billion.1Major export countries for Malaysian goods are Singapore, Japan, China, India, Korea as well as the United States, Australia, the Netherlands and Germany among others. In 2008, Malaysia’s largest export revenue contribution was made by the electrical and electronics products sector (38%). Other crucial sectors are palm oil & palm oil-based products, crude petroleum, liquefied natural gas and timber/timber-based products. Major import products are electrical/ electronic products, machinery, iron / steel products as well as chemical products.
Malaysia’s top five trading partners were the United States of America, the Republic of
Singapore, the European Union, the People’s Republic of China and Japan. Malaysian FDI reached RM 48 billion in 2008, but in first half of 2009 the FDI has dropped to RM4.2 billion.2 Sources of foreign investments mainly lie in Japan, Germany, the USA and
Singapore3.