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Malaysia's coffee market hits US$1.05 billion amid global supply challenges
Malaysia's coffee market hits US$1.05 billion amid global supply challenges

The Sun

time17 hours ago

  • Business
  • The Sun

Malaysia's coffee market hits US$1.05 billion amid global supply challenges

KUALA LUMPUR: Malaysia's domestic coffee market has reached a valuation of US$1.05 billion, supported by over 6,400 cafes operating across the country. Deputy Plantation and Commodities Minister Datuk Chan Foong Hin highlighted the sector's growth while addressing external pressures affecting global supply chains. Speaking at the 24th Malaysian International Food and Beverage Trade Fair (MIFB 2025) and Malaysia Cafe Expo (MCE), Chan emphasised the need to expand local coffee cultivation. 'Strengthening our own production is the way to ensure the cafe economy continues to thrive while positioning Malaysia as a credible origin in the global coffee trade,' he said. Key coffee-growing regions in Malaysia include Pagoh, Johor, and Ranau, Sabah. Chan urged local planters to capitalise on the crop's potential, despite coffee not falling under his ministry's direct purview. Global coffee supply chains are under strain, with Brazil's 2024 Arabica harvest shrinking by 12% due to El Nino-induced droughts. Additionally, the Red Sea crisis has forced shipping reroutes, adding US$0.12 to US$0.15 per pound to coffee arriving at Port Klang. These disruptions have driven the International Coffee Organisation's composite price indicator up by 94.6% in just one year. Chan also noted the symbiotic relationship between coffee and bakery products, which rely heavily on palm-based ingredients like margarine, shortening, and cocoa butter equivalent (CBE). 'This reinforces how Malaysia's palm oil industry is deeply interwoven with the rise of coffee culture and the cafe economy,' he said. - Bernama

Malaysia's Domestic Coffee Market Valued At US$1.05 Bln -- Chan
Malaysia's Domestic Coffee Market Valued At US$1.05 Bln -- Chan

Barnama

time17 hours ago

  • Business
  • Barnama

Malaysia's Domestic Coffee Market Valued At US$1.05 Bln -- Chan

REGION - CENTRAL > NEWS KUALA LUMPUR, July 30 (Bernama) -- Malaysia's domestic coffee market is valued at US$1.05 billion (US$1=RM4.23), with over 6,400 cafes operating nationwide, said Deputy Plantation and Commodities Minister Datuk Chan Foong Hin. Speaking to reporters at the 24th edition of the Malaysian International Food and Beverage Trade Fair (MIFB 2025) and Malaysia Cafe Expo (MCE), Chan said the external pressures highlight why Malaysia should expand domestic coffee cultivation for local consumption. 'Strengthening our own production is the way to ensure the cafe economy continues to thrive while positioning Malaysia as a credible origin in the global coffee trade. bootstrap slideshow 'As far as I know, one of the key areas where coffee is planted in Malaysia is in Pagoh, Johor, and Ranau, Sabah. Even though coffee is not under my ministry, I urge the planters to look into these crops, which have a huge prospect in Malaysia,' he said. While demand for coffee is booming, Chan noted that the global coffee supply chain is facing increasing volatility. For instance, Brazil's 2024 Arabica harvest has been cut by around 12 per cent due to El Nino-driven droughts. Simultaneously, the Red Sea crisis has forced shipping routes to detour by over 5,000 kilometres, adding US$0.12 per pound to US$0.15 per pound to coffee landed at Port Klang. 'These combined pressures have pushed the International Coffee Organisation's composite price indicator up by a staggering 94.6 per cent in just one year,' he said. Chan added that coffee rarely comes alone, as it almost always comes with a bakery to complement the coffee culture.

Malaysia engages EU, FAO to address EUDR standard risk classification
Malaysia engages EU, FAO to address EUDR standard risk classification

The Sun

time7 days ago

  • Business
  • The Sun

Malaysia engages EU, FAO to address EUDR standard risk classification

KUALA LUMPUR: The government will continue to hold engagement sessions with the European Union (EU) and global organisations to remove Malaysia from 'standard risk' status under the benchmarking system of the European Union Deforestation Regulation (EUDR). Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said that among the matters discussed was the accuracy of the country's latest forest data, which will be submitted to the Food and Agriculture Organisation of the United Nations (FAO) for the Global Forest Resources Assessment report, for Malaysia's classification process under the EUDR. 'The government will continue to pursue this engagement method or approach until we are removed from the standard risk (status),' he said during today's Dewan Rakyat sitting. Chan was responding to a supplementary question from Syed Saddiq Syed Abdul Rahman (MUDA-Muar) regarding the diplomatic, technical, and policy approaches the government has undertaken to negotiate with the EU and mitigate the impact of non-tariff barriers on Malaysia's smallholders. He said the 'standard risk' classification by the EUDR does not reflect the actual progress made by Malaysia. The country's sustainable palm oil certification (MSPO) has already reached 85 per cent, while its forest coverage is also over 54 per cent compared to the EU's, which is only around 39 per cent, he said. Meanwhile, Chan said that to mitigate the impact on smallholders, further efforts have been made via the establishment of a special committee for implementing the EUDR at the national level, which involves several ministries and related agencies. He said additional efforts include the establishment of an ad-hoc joint task force involving the participation of the Indonesian and EU governments to discuss the best implementation methods for meeting the requirements of the EUDR. Additionally, he stated that Malaysia has discussed the impact of implementing the EUDR among commodity-producing countries through cooperation platforms, specifically the Council of Palm Oil Producing Countries, the International Tripartite Rubber Council, and the International Cocoa Organisation. Chan also said the government is enhancing the competitiveness of the agricommodity (agricultural commodity) industry, including expanding the use of agricommodity products among consumers in importing countries through bilateral, multilateral or regional free trade agreements. 'These programmes are implemented to strengthen sustainable agricultural practices and ensure that smallholders are not left out of the supply chain for the European market. 'The Ministry of Plantation and Commodities will continue to carry out consultations with all affected stakeholders to ensure that the implementation of the EUDR will not have a negative impact on the country's agricommodity sector. In addition, he said new market potential will continue to be explored while strengthening the country's share in existing traditional markets. - Bernama

Malaysia ranks fifth in global pepper production
Malaysia ranks fifth in global pepper production

The Star

time19-07-2025

  • Business
  • The Star

Malaysia ranks fifth in global pepper production

Deputy Plantation and Commodities Minister Datuk Chan Foong Hin (fourth from right) officiating the Malaysian Pepper Campaign at a mall here in Kulai. KULAI: Malaysia ranks as the fifth-largest producer of pepper among member countries of the International Pepper Community (IPC), says Deputy Plantation and Commodities Minister Datuk Chan Foong Hin. Chan said that 49% of the country's pepper exports go to Japan, making it the largest export destination for this commodity. "Japan is known for its emphasis on quality, and the fact that 49% of our pepper exports go there shows that our pepper is recognised by the international community. "Admittedly, we cannot compete with regional countries on price, as nations like Vietnam offer cheaper prices. However, they cannot match the quality of pepper we produce," he said at a press conference during the Malaysian Pepper Campaign. He added that the country's pepper exports saw an increase of about 24% last year compared to 2023. "Last year, the total value of the country's pepper exports amounted to RM186.67mil for less than 6,000 metric tonnes. "Although the quantity of pepper is small, the export value is high. This is why the Malaysia Pepper Board hopes to expand cultivation beyond Sarawak to other parts of Malaysia, especially Johor," he said.

RM1.5 million for oil palm replanting in Kudat
RM1.5 million for oil palm replanting in Kudat

Daily Express

time18-07-2025

  • Business
  • Daily Express

RM1.5 million for oil palm replanting in Kudat

Published on: Friday, July 18, 2025 Published on: Fri, Jul 18, 2025 Text Size: Datuk Chan Foong Hin (second from left) officiates the groundbreaking ceremony for the new weighbridge centre owned by KPSM Kota Marudu. KUDAT: Deputy Minister of Plantation and Commodities, Datuk Chan Foong Hin, reaffirmed the Government's commitment to supporting oil palm smallholders in Kudat, Sabah by delivering over RM1.52 million in allocations. A total of RM795,780 was channelled to 10 smallholders under the Smallholder Oil Palm Replanting Financing Incentive Scheme (TSPKS 2.0) to support the replanting of old oil palm trees, covering 44.21 hectares. Advertisement The initiative helps ease their financial burden while enhancing plantation productivity and ensuring long-term income sustainability. Simultaneously, RM725,000 was allocated for the construction of two Smallholders' Plantation Access Road (JLPK) projects, covering a total of 2.3 kilometres, aimed at linking community settlements with independent oil palm plantations in the Kudat District. The projects involved are JLPK Kg. Rasak Darat Tigaman (RM225,000) and JLPK Kg. Suang Pai (RM500,000). These roads are prioritised for areas with active or newly developed plantations to improve transportation of agricultural inputs and harvested crops, ensuring better access to main roads and sales centres. 'From a logistical infrastructure standpoint, the Government, through MPOB, has also implemented assistance under the Smallholders' Plantation Access Road (JLPK) project. Priority is given to roads that connect actively cultivated or newly developed plantations managed by smallholders. 'This is to ensure the establishment of improved connectivity for nearby communities, especially in transporting agricultural inputs and delivering harvested crops to main roads and sales centres,' said Chan at the launch of the TSPKS 2.0 Programme in Kudat this morning. He also called on smallholders to actively update their personal information with the Malaysian Palm Oil Board (MPOB) to ensure timely and accurate delivery of government assistance and incentives. Meanwhile, Datuk Chan also officiated the groundbreaking ceremony (Majlis Pecah Tanah) for the new KPSM Kota Marudu Weighbridge Centre (Pusat Timbang) in Kampung Garuda, Kota Marudu. This will be the second weighbridge facility owned by Koperasi Pekebun Kecil Sawit Malaysia (KPSM) Kota Marudu Berhad. Licensed by the Ministry of Plantation and Commodities (KPK) on 17 January 2025, the facility is scheduled for completion by September 2025, with operations to commence by October 2025. Once operational, the weighbridge centre is expected to benefit around 300 smallholders in the surrounding area and is designed to handle up to 3,000 metric tonnes (MT) of Fresh Fruit Bunches (FFB) monthly. The total construction cost of RM1 million, is fully self-financed through KPSM Kota Marudu Berhad's own business profits. Additionally, the cooperative also owns a RM1 million commercial building and operates an agricultural supply business to support the needs of smallholders in the region. In line with the Government's holistic development approach, MPOB continues to strengthen its outreach through advisory services provided by its Oil Palm Extension Advisory Officers (TUNAS) and by actively organising the Mobile Service Counter Programme or Open Day. To date, 29 outreach programmes have been held across Sabah with participation from 1,455 independent smallholders. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia

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