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KUALA LUMPUR — Malaysia has built a multi-billion-ringgit cocoa and chocolate industry largely on imported beans, with domestic production supplying only a fraction of the raw material needed by its processors and manufacturers.
Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said Malaysia processed approximately 294,700 tonnes of cocoa beans in 2025, compared with only about 281 tonnes produced domestically.
The stark gap points to significant room for Malaysia to expand cocoa cultivation and strengthen its domestic supply while developing more value-added chocolate and cocoa products.
Based on International Cocoa Organisation data, exports of cocoa and cocoa products rose to RM18.33 billion in 2025, from RM15.06 billion in 2024.
Noraini said Malaysia remained the second-largest cocoa grinder in Asia and one of the leading cocoa-processing countries globally.
“The industry contributes not only through exports, but also through manufacturing, product development and business opportunities throughout the cocoa value chain,” she said.
Malaysia’s processing industry currently depends heavily on imported cocoa beans, exposing manufacturers to global supply conditions, price movements and exchange-rate fluctuations.
Noraini said strengthening domestic cultivation is therefore part of the government’s longer-term strategy, alongside maintaining Malaysia’s established processing capabilities.
The area planted with cocoa increased from about 6,216 hectares in 2024 to 6,580 hectares in 2025.
However, she said increasing acreage alone is insufficient, with greater emphasis needed on productivity, quality and returns to farmers.
The Malaysian Cocoa Board provides quality planting materials, agricultural inputs, technical guidance and farm-management training to growers.
More than 20 mini fermentation and drying facilities have also been established in cocoa-growing clusters to improve bean quality and enable farmers to obtain greater value from their produce.
The government is encouraging new cocoa planting while helping existing farmers improve yields, strengthening supply-chain traceability and diversifying import sources.
Noraini said the potential is not limited to cocoa beans, with opportunities to expand Malaysia’s downstream chocolate industry and move further into higher-value products.
Malaysia currently has 65 chocolate and confectionery manufacturers and about 280 small-scale and artisanal chocolate entrepreneurs.
The sector has opportunities in premium and artisanal chocolate, cocoa-based beverages and specialty ingredients, as well as applications in nutraceuticals, pharmaceuticals, personal care and cosmetics.
Halal-certified chocolate and cocoa products also offer opportunities for expansion into international markets, supported by Malaysia’s established halal certification system and food-manufacturing capabilities.
The development of stronger Malaysian brands and higher-value cocoa products could further broaden the industry beyond the processing of imported beans.
The minister said the government is also looking at opportunities involving fine-flavour cocoa, premium chocolate, specialty ingredients and innovative cocoa-based products.
“Our ambition is to strengthen Malaysia’s position as a trusted producer of high-quality, sustainable and higher-value cocoa products,” she said.
For domestic growers, stronger demand from Malaysia’s processing and chocolate-manufacturing industries could provide a larger market if local production can be increased competitively.
The challenge is to expand cultivation sufficiently to narrow the gap between what Malaysia grows and what its multi-billion-ringgit cocoa industry processes.
