Evaluation of Malaysia’s food balance of trade plan : achievement rates.

Malaysia has always been a net food importer in the last four decades. In 2007, the deficit in the food trade stood at RM9.7 billion (or USD2.9 billion). In 2002, Malaysia implemented a policy towards achieving a surplus balance of trade in food of RM1.2 billion (or USD352 billion) by 2010. This paper evaluates the policy in terms of the achievement rates of the plan. The analysis suggests that the actual trade data shows the intended targets are likely not to be met; in fact the deficit is expected to grow bigger with time. While the objective was commendable, the targets, rationales and strategies for such a plan require a serious rethinking

Marketing of pigs in Malaysia: an evaluation of market integration

This paper examines the pricing efficiency of the pig market in Peninsular Malaysia through measuring the degree of market integration. Specifically, this paper examines the price linkages between Kuala Lumpur (which is considered the market centre for price discovery) and five major local markets (Ipoh, Johor Bahru, Penang, Malacca and Seremban). The findings indicate, with the exception of Johor Bahru, the other market regions show high level of market linkage with Kuala Lumpur

Composite Models for Short Term Forecasting for Natural Rubber Prices

The economet1ic technique and Box-jenhins univariate method have been applied in forecasting natural rubber prices. This study developed a short term forecasting model known as the composite model, by combining the econometric and univariate models. The results indicate that the composite model produces more efficient forecasts than the econometric and univariate models

Crude Palm Oil Price Forecasting: Box-Jenkins Approach

A univariate ARIMA model developed by Box-jenkins was utilised to forecast the short-run monthly price of crude palm oil. The appropriate model for forecasting was found to be (0, 2, 1) (0, 1, 1) 6' This model indicates that the original crude palm oil series is non-stationary and contains some elements of multipliCity, hence inheriting moving average process. The identified ARIMA model induced the data series into a stochastic one, making it a suitable model for forecasting crude palm oil prices in the short term

Small and medium food enterprises in Malaysia: institutional support and policy perspectives

In Malaysia, SMEs constitute 99.2 per cent of the manufacturing establishments while the food SMEs or SMFES account for only about 1 per cent of the total. The SMEs are engine of growth, growing at a rate higher than the country’s average growth rate. However, the SMFEs sector has not progressed in tandem with the increase in demand for food due to rise in population and income. Malaysia has instituted a number of policy innovations to steer its SME development through the National SME Development Council (NSDC), which mobilizes 15 ministries and 60 agencies to support this sector on all aspects—finance, infrastructure, entrepreneurial training, legal support and so on. This article provides a review of the SMFEs in Malaysia and examines the institutional support available for this sector. The article concludes that despite the support provided, the SMFEs are plagued with structural problems that require more than institutional support and that include R&D and innovation, infrastructural development and specific policies to address their unique problems

Price Linkages within Selected Vegetable Markets in Malaysia

This study examined the nature of price linkages in farm, wholesale and retail markets of eleven selected Malaysian vegetables, and focused on the lead-lag relationship in vertical level within the selected markets. The statistical tests used for the causality and lead and lag relationship were based on methods developed by Granger, Haugh and Pearce. Findings indicate that price discovery is made at the wholesale centre and whole sale price appears to lead both farm and retail prices for most of the vegetables examined

Pricing and Causality Among Selected Fats and Oils

This paper studies the nature of price relationships among selected prices of five fats and oils (palm oil, soybean, coconut, fish oils and tallow) to provide empirical evidence as to the competitive structure of the fats and oils market. The fats and oils market is highly competitive and price is shown to be simultaneously discovered by the market with minimum lags and distortions. Statistical causality models developed by Granger, Sims and Haugh-Pierce were used to examine this hypothesis. Inferences are made as to the applicability of the models in understanding the nature of the market