KUALA LUMPUR, Malaysia , July 11, 2022 - As the global economy continues to deal with unprecedented levels of disruption caused by the pandemic and regional conflicts, the convergence of energy security and food security issues has become a front-of-mind issue faced by policy makers and consumers alike. In Malaysia, this has come to the surface with the emergence of several issues with poultry production, primarily chicken supply.
The report by Malaysia Global Business Forum (MGBF) titled 'Malaysia's Poultry Ecosystem: An Analysis of Business Data' extrapolated data from a total of 3,724 registered business entities with self-declared business activities in poultry.
To gain deeper insights, the report focused on 627 companies. Out of 402 companies that filed financial data in the last 12 months, it was learnt that 55.12 per cent were profitable during this period. The MGBF report also identified 30 companies that filed losses greater than RM1 million.
MGBF Founding Chairman, Nordin Abdullah, said, "Domestic and foreign investors are increasingly making data-driven investment decisions. For Malaysia to be competitive in the context of the global economy, reliable and up-to-date business intelligence needs to be accessible.
"The largest stakeholder and custodian of business data is the government of Malaysia. There is an identified requirement to consolidate business data and improve data governance in the poultry sector. To achieve that, data should be searchable at the data custodian level.
"Effectively tagged data will ensure that business and economic data can be correctly derived on an industry-wide basis, which will empower policymakers, regulators, the providers of private funding and any allocation of public funding through grants or subsidies with a data-driven approach.
"There's an opportunity to design a desirable future through data resilience. Consumers remain the most important stakeholder in the overall equation," continued Nordin Abdullah.
The report is available for download on here and the MGBF LinkedIn page.
MGBF was established to empower stakeholders at the intersection of international and Malaysian business. Through government relations, business intelligence, advocacy, media engagement, market research, networking, advisory and business matching, MGBF will continue to explore threats and opportunities with industry leaders and policy makers to ensure that Malaysia becomes a leader in the context of Asia.
This report includes previously unreleased data on the issue to better understand the challenges faced by government and private sector to chart a sustainable near- and long-term future through this rapidly evolving crisis.
All data for this report was obtained from publicly available data sources. The main source of data was primarily the registration of companies (ROC) and registration of businesses (ROB) databases, which remain in the custodianship of the Companies Commission of Malaysia (SSM) under the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP).
This data represents a focused sample group of 402 registered business entities that submitted financial data, and was derived on 24 June 2022. Based on this data, 46.27 per cent of profitable poultry business entities filed a profit that did not exceed RM1 million in 2021. During the same period, some 38 companies recorded greater than RM1 million in profits. The most profitable company posted a profit of just under RM10 million.
The data reveals that as of 24 June 2022, there were a total of 3,724 business entities registered with self-declared business activities in poultry. The report focuses on 627 entities and the financial analysis focuses on 402 businesses that have filed financial data in 2021 and 2022; it is from these business entities that a more detailed analysis was derived.
State of affairs
It was identified that one company generated a revenue of over RM1.3 billion, while the company that recorded the highest profit clocked in slightly below RM10 million for the year 2021. During the same period, profitability of 46.27 per cent of registered business entities did not exceed RM1 million in profits.
In terms of the 178 business entities that registered losses in 2021 and 2022, the majority registered a loss of not more than RM1 million. The most concerning numbers are the 13 business entities that experienced more than RM9 million in losses.
This represents a considerable industry-wide losses. A deeper multi-year analysis is required to establish whether this is an ongoing trend or if it is a spike due to current external conditions. Yet, the data shows an upward trend in the number of registered business entities.