A recent article from The Star (link below) about Malaysians spending the most on groceries among ASEAN countries has surprised many. What’s even more striking is that the analysis accounts for currency conversion and includes comparisons to the wealthier nation—Singapore.
Takeaway
Malaysians Spend the Most on Groceries
Malaysians bear the highest grocery costs in South-East Asia, spending an average of US$1,940 per person annually in 2023 (RM8,848 at 2023 exchange rates), according to the USDA Economic Research Service. This surpasses Singapore (US$1,831), Thailand (US$1,108), the Philippines (US$1,070), and Cambodia (US$898).
Factors Affecting High Groceries
Heavy reliance on food imports, particularly 95% of corn for animal feed from countries like Argentina and Brazil, exposes Malaysia to global supply chain disruptions and price shocks.
A weaker Ringgit, farm labor shortages, rising costs of inputs like fertilizers and animal feed, and low farm productivity further drive up expenses.
Monopolies and oligopolies in food production also limit competition, inflating prices. Sunway University’s Dr. Yeah Kim Leng emphasizes the need for government and private sector efforts to boost local food production, enhance farm productivity, liberalize food markets, and improve supply chain efficiencies to lower costs.
Higher Income Spent on Grocery Bills
Despite Malaysia’s higher per capita income compared to most Asean neighbors, its food expenditure at home exceeds Singapore’s, where households allocate 68% of food budgets to dining out, compared to Malaysia’s 48%.
Khazanah Research Institute’s Dr. Teoh Ai Ni notes that Malaysians spend 52% of their food budget on home-cooked meals, reflecting different consumption patterns. Malaysia’s food import bill hit RM75.6 billion in 2022, with significant imports of animal feed, cereals, and dairy.
These factors increase prices for essentials like chicken, eggs, and meat. As incomes rise, the share of spending on food decreases relative to discretionary items, but Malaysia’s import dependency and structural issues keep grocery costs high, highlighting the need for strategic reforms.
For more details and charts, check this out:
The Star 25 May 2025 – INTERACTIVE: Malaysians have highest grocery bill in South-East Asia
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