Kuala lumpur: Malaysia’s domestic coffee market has been valued at US$1.05 billion, with over 6,400 cafes operating nationwide, as stated by Deputy Plantation and Commodities Minister Datuk Chan Foong Hin. Speaking at the 24th edition of the Malaysian International Food and Beverage Trade Fair (MIFB 2025) and Malaysia Cafe Expo (MCE), Chan highlighted the importance of expanding domestic coffee cultivation to counter external pressures and support the thriving cafe economy.

According to BERNAMA News Agency, Chan emphasized the significance of strengthening local production to position Malaysia as a credible player in the global coffee trade. He identified Pagoh, Johor, and Ranau, Sabah as key areas for coffee cultivation and urged planters to explore the potential of these crops given their promising prospects in Malaysia.

Chan also pointed out the volatility in the global coffee supply chain, citing Brazil’s 2024 Arabica harvest reduction by approximately 12 percent due to El Nino-driven droughts, and the Red Sea crisis, which has forced shipping routes to detour significantly. These factors have contributed to an increase in the International Coffee Organisation’s composite price indicator by 94.6 percent within a year.

Additionally, Chan noted the integral relationship between coffee and bakery products, which significantly involves Malaysia’s palm oil industry. Palm-based ingredients such as margarine, shortening, and cocoa butter equivalent (CBE) are vital in bakery production, particularly in chocolate-flavored pastries and confections. This connection highlights the intertwining of Malaysia’s palm oil industry with the burgeoning coffee culture and cafe economy.