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SHAH ALAM — Malaysia may produce only a fraction of the cocoa beans it processes, but its factories play a significant behind-the-scenes role in the global chocolate supply chain.
The country processed approximately 294,697 tonnes of cocoa beans in 2025, compared with domestic cocoa bean production of only 281.29 tonnes, according to the Malaysian Cocoa Board.
The gap reflects the transformation of Malaysia’s cocoa industry from a major producer of beans into a regional processing centre.
While countries such as Côte d’Ivoire, Ghana and Ecuador dominate cocoa cultivation, Malaysia imports beans and processes them into cocoa butter, cocoa liquor, cocoa powder and cocoa cake for food and chocolate manufacturers worldwide.
The country exported cocoa and cocoa products worth RM18.33 billion in 2025, with the United States, Japan, China, Indonesia, Thailand, Singapore and the Philippines among its key markets.
The Malaysian Cocoa Board said Malaysia’s contribution is often less visible to consumers because cocoa ingredients processed locally could end up in chocolate products sold under international brands.
“Many consumers are more familiar with international chocolate brands and cocoa-producing countries such as Côte d'Ivoire, Ghana and Ecuador than with the countries that process cocoa into these essential ingredients.
“As a result, Malaysia's contribution often takes place behind the scenes, despite being an important player in the global cocoa supply chain,” the board said.
Malaysia was once a significant cocoa producer. Cocoa cultivation peaked at 414,236 hectares in 1989, while cocoa bean production reached 247,000 tonnes in 1990.
The industry contracted from the early 1990s as falling cocoa prices, pest infestations, labour shortages and competition from more profitable crops reduced the attractiveness of cocoa cultivation.
“These included lower profitability compared with competing crops, as well as land competition to plant other crops,” the board said.
As plantations declined, however, Malaysia retained and expanded its downstream processing capabilities.
The country’s strategic location in Southeast Asia, established port and logistics infrastructure, experienced workforce and cocoa-processing expertise helped support the shift.
Port Klang and Port of Tanjung Pelepas also provide access to major shipping routes, facilitating the import of cocoa beans and export of processed products.
Today, Malaysia’s cocoa ecosystem includes four cocoa grinders, 65 chocolate manufacturers and more than 22,600 workers.
Among the major processors operating in the country are Guan Chong Berhad, JB Cocoa Sdn Bhd, Barry Callebaut Malaysia and KL Kris Sdn Bhd.
The Malaysian Cocoa Board said future growth would depend on both downstream processing and efforts to develop premium and fine-flavour cocoa production.
Malaysia has introduced traceability and quality-monitoring systems while promoting fine-flavour cocoa clones, Good Agricultural Practices (GAP) and specialised wet cocoa bean processing.
The country is also seeking to strengthen its position in higher-value cocoa products as demand grows for premium chocolate, specialty ingredients and other cocoa-based applications.
For an industry that once depended heavily on plantations, Malaysia’s cocoa story has evolved into one increasingly centred on processing, manufacturing and value-added products.
Its role may be less visible to consumers than that of the countries where cocoa is grown, but the scale of Malaysia’s processing industry places it firmly within the global cocoa supply chain.
