Create a Company for Food Product Manufacturing in Malaysia

Updated on Wednesday 31st July 2019

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Food manufacturing businesses target niche products that are popular on a certain market or are consumed by a large number of clients. In many cases, the fact that the products are distinct are manufactured according to a certain, often undisclosed recipe will increase the popularity of the range. 
Investors who open a company for manufacturing food products in Malaysia need to observe the local laws for producing, storing and labeling their products, to name only a few regulations. Our team of lawyers in Malaysia can help investors open this type of company while remaining fully compliant with the laws in force.
A food business will require an initial investment and will demand that the investors choose a range of products in which they will specialize. In most cases, this business can be a lucrative one especially when the quality of the product or products is high. Many investors will also choose to export their foodstuffs.
Our law firm in Malaysia specializes in advising both local and foreign clients on the legal and regulatory framework for various types of businesses and one of our specialists can answer questions about particular issues regarding food businesses.

Food manufacturing in Malaysia

Below, we present some sub-sectors in the food manufacturing sector that can present different business opportunities for investors:
  • Biscuits manufacturing: the production of biscuits, cookies and other packaged sweets as per specific recipes and using different ingredients, with a focus on special categories, such as sugar-free or low-sodium.
  • Cereals: breakfast cereals and oats manufacturing companies can produce a wide range of items, from those that are high in fiber to those for children or organic ones.
  • Soups and porridges: this is a category that will include powder packs and packaged, dehydrated goods for the instant preparation of meals.
  • Noodles and pasta: producing high-quality noodles and pasta for export as well as the internal market.
  • Baby food: a high niche sector, can include baby milk or specialized formulas as well as cereals and others.
  • Spices and herbs: packaged, mixed or simple spices, which can be very popular in Asian markets and for export. 
These are just some ideas that can be employed by entrepreneurs who wish to open a company for the manufacturing of food products. Once they have selected their niche, investors can reach out to our team of attorneys in Malaysia for detailed information about any specific requirements that may apply in a particular sub-sector. 

Opening a company for manufacturing food products 

Investors who open a company for the manufacturing of food products will need to incorporate a company and register it with the Companies Commission in Malaysia. Subsequent food licenses need to be obtained by investors. Applications can be submitted via an online portal.
At our law firm in Malaysia, our attorneys specialize in company formation matters and can assist foreign investors who wish to know detailed information about the steps for opening a company.
Many companies in the food production sector are small or medium ones and they are adapting their processes to the use of technology, as it evolves in different sub-sectors. The use of various automated technologies for the manufacturing process should be included in the business plan as the costs will need to be adjusted when calculating the initial startup costs. 
One of our lawyers in Malaysia can give you more details about the company formation costs and the ones associated with starting a business in a particular, regulated business field.
Investors who do not wish to open a new company can purchase a business that is for sale in Malaysia or enter into a franchise. Before buying or taking over an already existing company, investors are advised to perform a company checkup. Our team of attorneys in Malaysia can provide more details about franchising and purchasing a business.
The food industry in Malaysia is a developed one and, along with the beverages sector, it is one of the manufacturing industries where investors can find various opportunities. The statistics below provide some information about the industry in its entirety:
  • in 2017, the total exported foods amounted to 4.91 billion euros or 20 billion RM;
  • the processed food exports share amounted to 1.26 billion euros or 6 billion RM;
  • cocoa and cocoa preparations amounted to 960 million euros or 4.6 billion RM;
  • cereals and flour preparations had an export value of 690 million euros or 3.3 billion RM.
Investors who wish to know more about how to open a food manufacturing company can contact our law firm in Malaysia