Kuala lumpur: Sales from the ongoing Food and Drinks Malaysia (FDM) exhibition here are set to exceed last year's figure of US$265 million or RM1.081 billion, despite challenges such as supply chain impediments and rising costs. Henri Tan, managing director of SIAL Network ASEAN and India, is confident in beating the target due to increased demand for food products and ingredients, brisk business matching deals, and a spike in exhibitors and visitors.
According to BERNAMA News Agency, Tan said this reflects optimism in Malaysia's food and beverage (FandB) industry's growth despite rising food prices due to higher transport costs. Food costs have risen due to geopolitical tensions, disrupting food shipments through the Strait of Hormuz amid the conflict in West Asia. Visitor traffic to the expo, held at the Malaysia International Trade and Exhibition Centre, is projected to increase by 20 percent to 18,000 from 15,184 recorded last year.
Tan attributed the expected increase to stronger international participation, noting that 60 percent of the more than 450 exhibitors are international companies, including those from South Korea, Brazil, and Turkiye. SIAL, which stands for Salon International de l'Alimentation, the world's largest food innovation network, is the organiser for the three-day event which kicked off yesterday. The SIAL network partners with local organisers to host FDM, connecting ASEAN and Malaysian FandB markets with global suppliers, distributors, and industry leaders.
Amid fears that the on-off conflict in West Asia could escalate further, Tan said FandB manufacturers, producers, and retailers are looking for the government's support to help with the rising costs. He suggested that under the 2027 Budget, the government could help FandB entrepreneurs through technological funding support to train FandB industry human resource personnel in embracing digitalisation and pursuing innovation.
Tan also urged the government to assist small and medium enterprises in the FandB business to expand their operations through tax incentives or subsidies, enabling them to adapt to new technologies and enhance their business skills. They could also be given financial support to learn the intricacies of artificial intelligence (AI), which they can utilise to increase the efficiency of their business operations.
On food security and overcoming food chain supply obstacles, Tan said greater regulatory cooperation among ASEAN member countries is needed to facilitate cross-border sourcing of food products and raw ingredients, which could help reduce costs and strengthen regional food security. He emphasized that closer collaboration between neighboring countries such as Malaysia, Thailand, and Indonesia could enable manufacturers to source supplies efficiently within the region instead of relying on imports from Europe and the Middle East.
To mitigate these challenges, Tan urged the industry to focus on food innovation, driven by geopolitical instability, rising input costs, and the need for food security. Food innovation could improve resource efficiency, reduce food waste, and develop value-added products using locally sourced ingredients. He cited examples such as oyster farming in Johor, new downstream durian products, and innovative uses of local ingredients, including pepper-based products, as positive steps.
Despite mounting cost pressures and an uncertain global environment, Tan believes the FandB industry will continue to adapt, pointing to its resilience during previous crises such as the SARS outbreak in 2002 and the COVID-19 pandemic. "The food industry has always adapted with consumers adjusting their spending habits while businesses continue to innovate and improve efficiency. Human beings have an instinct to survive, which is why the industry will continue to evolve," he said.