Rice flour shortage comes to a boil

The shortage of locally produced rice in Malaysia has caused manufacturers of mee hoon and kuey teow (rice noodles) to rely heavily on imported rice, resulting in increased production costs. According to Datuk Ang Cho Teing, the president of the Bee Hoon Manufacturers Association of Malaysia, mee hoon producers have been using 80% imported rice for production due to the dwindling supply of local rice, leading to significant cost increases. Ang stated that most of them are small-scale factories and with the unavailability of local rice supplies, they had no choice but to turn to imported rice. As a result, these manufacturers are facing losses of around 10% and struggling to compete with larger factories. Ang predicted potential supply disruptions for small-scale manufacturers in the next two weeks due to a 30% reduction in production.

Furthermore, Ang highlighted that imported rice is more expensive due to its shortage, making it challenging for them to provide sufficient noodles to their customers. He stated that they are requesting their customers to sell their existing stock and wait for stable rice supplies and prices. They hope that after the rice harvest in December, there will be enough local rice available. Despite using imported rice, mee hoon manufacturers have refrained from adjusting their prices for now. Ang expressed their understanding of the struggles faced by hawkers and emphasized the need for the government to promptly address the rice shortage and increase local rice production. If price adjustments are necessary, they would only make a slight increase of 20 sen per kg to mitigate the impact on consumers.

Similarly, kuey teow producers are also facing high production costs due to the shortage of local rice. Chaang Tuck Cheong, the president of the Malaysian Bakery, Biscuit, Confectionery, Mee, and Kuay Teow Merchants Association, said that the price of 50kg of local broken rice has risen from RM120 to RM150, while the price of 50kg of regular rice has increased from RM130 to RM180. This has resulted in a 30% to 40% increase in production costs. Small-scale factories are unable to obtain broken rice and are forced to use regular rice. Two small factories have already closed down due to this supply issue. However, industry players are not planning an immediate price hike and are closely monitoring the situation. They have faith in the government’s ability to resolve the problem and have requested the government to open up more rice importers and boost local production.

On the consumer side, Datuk Paul Selva Raj, the secretary-general of the Federation of Malaysian Consumer Associations (Fomca), has observed some price increases. Certain food items are experiencing fluctuating prices, making it challenging for consumers to manage. He urged the government to address the structural issues and rice prices promptly, while also boosting local rice production. He emphasized the importance of consumers making value-based choices and being mindful of food expiration dates to avoid hoarding excessive quantities. Paul also highlighted that some households have both spouses working outside and are unable to cook at home, so he urged the government not to make statements encouraging consumers to cook at home solely to save money.