FACULTY OF TECHNICAL AND VOCATIONAL EDUCATION

GROUP ASIGNMENT 5

GROUP 3

FOOD SERVICE DEVELOPMENT PLANNING SYSTEM

COURSE Industrial Policies and Regulations In Foodservice

COURSE CODE BBS10205
STUDENT NAME 1. MASTURINA BINTI ABU BAKAR (CB220070)
2. GABRIELYN ANAK MILLTON (CB220065)
3. ASYRA ANTHONY (CB220062)
4. MUHAMMAD ABADI BIN ROSLAN (CB220160)

SECTION 1
LECTURER SIR AFIF NAIM ABD RANI
SUBMISSION DATE 4/1/2023
TABLE OF CONTENT

BIL. CONTENT PAGE

1. ACKNOWLEDGEMENT 1

2. OBJECTIVE OF THE STUDY 2

3. MAIN BODY
1.0 Introduction to Import and Export 4
2.0 Requirement needed to Export and Import
2.1 Import and export product
2.2 Function of Jabatan Kastam 4-14
2.3 Document required
2.4 Limitation of Import and Export
3.0 Agencies that involved in Export and Import
3.1 Import and Export comes in two major form
3.2 15-20

21-27

28-34
4. CONCLUSION 35

5. APPENDIX 36

6. REFERENCE 37
ACKNOWLEDEMEMENT

We have taken a lot of effort into this project. However, completing this project would
not have been possible without the support and guidance of a lot of individuals. We would
like to extend our sincere thanks to all of them.

We are very grateful to our respected lecturer En. Afif Naim Bin Abd Rani who gave
us a chance to work on this project. We would like to thank him for giving us valuable
suggestions and ideas.

We would also like to thank our college for providing us all the necessary resources
for the project. All in all, we would like to thank everyone involved in this project and helped
us with their suggestions to make the project better. Finally, we would like to thank our
parents and friends for always being with us and supporting us in every situation.
OBJECTIVE OF THE STUDY

1. Learn a new knowledge about food import and export

2. Expanding the marketplace for goods by produce it on an outsized scale.
3. Earning exchange through export products.
4. Creating employment opportunities in a country by promote export oriented and
related enterprise.
5. Achieving optimum utilization of resources by large scale production of product.
1.0 INTRODUCTION IMPORT AND EXPORT PRODUCTS

Foreign trade is conducted through imports and exports. Imports, exports, and the foreign
trade balance are all included in the term "foreign trade," which is broken down into "foreign
trade in goods" and "foreign trade in services." Summaries of commodities and services are
used to show the overall imports, exports, and balance of international commerce.

Selling products and services to another country from one's own country is known as
exporting. Purchasing goods from elsewhere and bringing them into your own nation is
referred to as importing. Malaysia, which borders Brunei, Indonesia, Singapore (through a
bridge), and Thailand on land and the Philippines and Vietnam on the water, is a historic
commerce hub and a key area for military operations.

Malaysia imported $175 billion worth of goods and services in 2015 and exported
$254 billion worth. Import and export laws, are still intricate goods-specific requirements in
place. The Companies Commission of Malaysia must first receive merchants' registrations
before allowing them to import or export items that need licences. Following registration, a
business must request an import permit from the Ministry of International Trade and Industry
(MITI). Dagang Net, a privatised one-stop shop for all import and export laws, is used in
Malaysia.

Example list of product that can import and export :

 Agricultural products
 Animal
 Food stuff
 Iron and related products
 Heavy equipment
 Vehicles
 Plants

All imported processed meat and cattle products need to be halal-certified and come from
slaughterhouses that have undergone inspection and received the nod from Malaysia's
veterinary and religious authorities.
2.0 Requirement needed to Import and Export

2.1 IMPORT AND EXPORT PRODUCT

Jabatan Kastam Diraja Malaysia is a government department body under the Malaysian
Ministry of Finance. JKDM functions as the country's main indirect tax collector, facilitating
trade and enforcing laws. The top management of JKDM is led by the Director General of
Customs (Turus III) and assisted by 3 deputies, namely, the Deputy Director General of
Customs Enforcement/Compliance Division (Jusa A), the Deputy Director General of
Customs Customs/Inland Tax Division (Jusa A) and the Deputy Chief Director of Customs
Management Division (Jusa B). The Royal Malaysian Customs Department consists of
several divisions, namely the Enforcement Division, the Inland Tax Division, the Compliance
Division, the Customs Division, and the Technical Services Division.

Short form name: JKDM/ KDRM/ RMCD

Established: 1931

Previous agency:

1. persatuan kastam
2. Jabatan Kastam dan Eksais Negeri-Negeri Melayu Bersekutu
3. Kastam dan Eksais Diraja Malaysia
4. Jabatan Kastam dan Eksais Diraja Malaysia

2.2 FUNCTION OF JABATAN KASTAM DIRAJA MALAYSIA

 Collect national revenue in the form of taxes and customs duties consisting of import
duty, export duty, excise duty, sales tax, service tax, extraordinary profit levy, vehicle
levy and non-tax revenues.
 Providing trade facilitation in the form of incentives and facilitation to the industrial and
commercial sectors that aim to generate the national economy in line with the change in
government policy that prioritizes the industrial sector has been prepared by JKDM.
 Enforcing laws under the Customs Act 1967, Dangerous Drugs Act 1952, Anti-Money
Laundering Act 2001, Sales Tax Act 1972, Service Tax Act 1975, Excise Act 1976, Free
Zone Act 1990 and other related subsidiary legislation.

2.3 DOCUMENT REQUIRED FOR IMPORTING AND EXPORTING

When bringing the product into or out of Malaysia, traders must provide the document to
customs officials.

 Customs export or import declaration permit

An official document known as a customs declaration lists and describes the products that
are being imported or exported. A customs declaration is the act by which a person declares
their intention to place items under a certain customs process, according to the law.

 Commercial invoice
A commercial invoice is an export document that serves as legal evidence of a sale
transaction between the buyer and the seller. It is mainly used for clearance purposes with
regard to customs and helps in the determination and assessment of duties and taxes
payable.
 Delivery letter
Transport refers to the movement of the product from its production or storage location to the
location where it was intended to be delivered to the customer. The method of distribution for
the goods has a significant impact on its cost. This decision must be carefully considered
because it directly affects how competitive the product is.

 Insurance certificate
A document that is used when insurance is purchased under an open maritime cargo policy
to ensure that coverage is offered to cover loss or damage to cargo while it is in transit. In
some circumstances, a shipper may produce a document attesting to the fact that a
shipment has been covered by an open policy, the certificate serving as a substitute for the
open policy whose terms govern.
 Bill of lading/ airways bill
A carrier must provide a shipper with a bill of lading, which lists the kind, amount, and final
destination of the goods being transported. A bill of lading is a contract between a shipper
and a carrier, a receipt for shipping goods, and a document of title.

 Packing list product

Each package's contents are listed on a packing list (box, pallets, etc). It contains specific
listings of the items in each package, as well as weights and dimensions. A copy of the
packing list should be placed inside each carton or box, and a copy of the packing list can
also be affixed to the outside of a package.

IMPORT

Import licencing is an administrative process that necessitates the submission of an

application or other documents to the relevant administrative authority as a prerequisite for
the importation of goods (other than that which is needed for customs reasons).

EXPORT

Governments give exporters with licences to enable them to export specific items to specific
nations. These items may be strategically significant, scarce, or under control to adhere to
international accords.
2.4 ADVANTAGE IMPORT AND EXPORT

 One of the simplest ways to engage in international trade, import and export create a
tonne of job possibilities.
 Compared to other means of joining the global marketplace, requires a lower time and
financial expenditure.
 Is considerably less dangerous than other ways to enter the worldwide business world.
 Since no country can be completely self-sufficient, import and export are essential to the
survival and development of that country.
 Can assist nations in gaining access to the finest technology, goods, and services
available.
 Compared to creating a market, it provides superior trading control, and the risk is far
lower.

2.5 LIMITATION OF IMPORT AND EXPORT

 It includes additional expenditures for packaging, shipping, protection, and insurance

that add to the overall cost of the goods.
 Local businesses that are near the client may be able to better service them than
businesses operating outside of their country.
 Products must meet quality criteria. Any export of subpar goods will damage the
reputation of the country and draw criticism.
 Challenging and stressful to get the necessary permits and paperwork for international
trading.
 Risk losing control of the home market if you are not careful in import and export.
3.0 Agencies that involved in Import and export

3.1 Import and Export comes in two major forms

1. Direct Export/Import
- Direct export/import is a business activity occurring between an exporter and an
importer without the intervention of a third party.
2. Indirect Export/Import
- Indirect export/import involves goods through various intermediaries in the
producer country.
3.2 Environmental forces in Import and Export Activities
1. Forces can be control
- Any business whether it is domestic or international, there are certain factors are
within our control such capital, finances, raw materials, personnel, production and
marketing.
2. Physical condition
- Impact of geography and natural resources. Example location, size, climate
3. Political and legal conditions
- The stability of the government, overlook at one country, law and how they
enforce them.
4. Cultural conditions
- Aesthetics, attitudes and beliefs, religion, material culture
3.3 The benefits of Import and Export
- Increase profit and sales
- Lower manufacturing cost
- Remain competitive with other companies
- Supply product not available in the market
- Develop diplomatic
- Ensure enough supply in the country.
3.4 Rules and regulations to consider in Food Import and Export
1. Import and Export license
- No license required
- General license
- Individually validated license

Violations of the licensing regulations carry both civil and criminal penalties, therefore you
can’t assume that the product import or export doesn’t require an export license. A company
need to do their homework
 2. Determine type of license
- What are the item been import/export
- What will the item import/export be used for
- From where do you import/export an item
- Who will receive your item
3. Anti-boycott requirements
- Restrictive trade practices imposed by a countries against other countries.
4. Foreign corrupt practices act
- Restrictions of offering pay or promise to pay money or anything of value to any
foreign official for the purpose of securing or retaining a business/company.
5. Food and drug administration requirements
- Many countries have their own version of FDA. The import/export product
covered by the regulations of the FDA, the company must comply with the law of
the country to which good are being shipped and to ensure that the product is
properly labelled and meet the specification of the foreign countries.
6. Environmental protection agency notification requirements
- Any import/export of hazardous waste, pesticides or toxic chemicals.

3.5 Food import and export in Malaysia context

1. Ministry of International Trade and Industry (MITI)

The Malaysian government's Ministry of International Trade and Industry, also known as
MITI or Kementerian Perdagangan Antarabangsa dan Industri, is in charge of
international trade, industry, investment, productivity, small and medium-sized
businesses, development finance institutions, halal industry, automotive, steel, and
strategic trade. The Menara MITI building, part of Naza TTDI's 75.5-acre KL Metropolis
mixed development, which is intended to serve as Kuala Lumpur's International Trade
and Exhibition District, is where the ministry's headquarters are located. Jalan Sultan
Haji Ahmad Shah in Kuala Lumpur. One of the three ministries that haven't relocated to
Putrajaya is this one. Through the Ministry of International Trade and Industry and a
number of other governmental organisations, the Minister of International Trade and
Industry carries out his duties. In Kuala Lumpur, it has its main office.
Sector level under MITI:

1. Investment Opportunities
Aligned to delivery NIA and right-to-win
2. Strategy Thrusts
To address sector- specific challenges
3. Sector-specific initiatives
That addresses challenges to NIA

Sector – level View

For the New Investment Policy, a sector-level perspective is crucial on three fronts.
First off, it enables thorough reforms that concentrate on solving certain problems that
might not be identified at the national level. Second, it makes it possible to target
changes by allowing them to be tailored to the requirements of each sector. Matureness
is a crucial factor to take into account, as techniques to bolster R&D, for instance, will
differ greatly in an established industry compared to a sector in its infancy. Last but not
least, because of the focused approach, it enables resources to be used more effectively
to quicken the pace of outcomes.
Three target sectors are recommended in the New Investment Policy as part of the
initial wave of investment reform. Electrical and electronics (E&E), the digital economy,
and pharmaceuticals make up the three economic sectors. These industries were
chosen based on important selection criteria, such as their connection with national
interests, investment flows, and comparative advantage.
Additional sector reviews will be conducted in future waves, with Chemicals and
Aerospace identified as part of second wave of sectors targeted for investment
transformation. As such, the three sectors covered in the New Investment Policy is in no
way represent an exhaustive list of Malaysia’s priority sectors.

2. Ministry Of Health Malaysia (MOH)

 The Ministry of Health (Kementerian Kesihatan in Malay), also known as MOH, is a
ministry of the Government of Malaysia that is in charge of the following aspects of the
country's health system: patient safety, clinical research, health institution, laboratory,
pharmaceutical, patient care, respiratory medicine, public health, management, medical
research, health systems research, health promotion, and health care tourism.
Through the Ministry of Health and a number of other government organisations, the
Minister of Health manages ministerial duties. After the cabinet resigned on August 16,
2021, the position of Health Minister is now vacant. [2] The Deputy Minister of Health
assists the Minister. Putrajaya is where its corporate office is located.

3. Food Safety Information System of Malaysia (FoSIM)

A one-stop web-based system called FoSIM serves a number of user groups, including
the general public, food importers, exporters, handlers, and the Malaysian Ministry of
Health. Through the use of FoSIM, the Food Safety and Quality Division (FSQD) is able
to keep track of the country's complete food industry supply chain and its regulatory
agencies.

Features The following features are included in FoSIM:

1. Microservices Oriented
FoSIM is a sizable system that uses modular services, with each module
supporting a distinct business objective.
2. Modules That Can Be Used Offline
For some modules, the system works without an Internet connection.
 3. Large Data
The system's extensive data collection will enable better decision-making and the
development of next initiatives and policies.
4. Data Protection and Security
The gateway detects unauthorised login attempts using the HTTP protocol, which
needs a certificate to encrypt and decrypt data, and then it queries for additional
credentials.

Technology Advantages

o The following are the primary effects of FoSIM:

 Improved Contravention Management
o Early detection of food violations and timely notification of the appropriate
parties.
 System task monitoring and alerting
o The system notices delays, initiates notifications, and escalates unfinished
jobs.
 Mobile Device Compatible
o The Inspection and Sampling modules are accessible in offline mode and
supported on handheld devices for ease of use.
 Open and honest processes and procedures
o Users of the system will be well-informed of the procedures and processes
thanks to accountability in execution and transparency in decision-making.

4. Department of veterinary services

A veterinarian (vet), also referred to as a veterinary surgeon or veterinary physician, is a

doctor who specialises in the treatment of animals. They treat a variety of illnesses and
wounds in non-human animals. Veterinarians are also involved in zoonotic disease
surveillance and prevention, biosecurity, animal nutrition, vaccination, and parasite
control, as well as animal reproduction, animal health management, conservation,
husbandry, and breeding.
 The local nomenclature for a veterinarian is frequently a regulated and protected
term, which prevents members of the general public from using it unless they meet the
necessary requirements and/or are licenced. In order to generate the most
knowledgeable veterinarians who meet these requirements, this title is selective. In many
instances, only those professionals who are registered as veterinarians are allowed to
carry out the activities that a veterinarian is capable of performing (such as treating
illness or performing surgery on animals). For instance, only licenced veterinary doctors
are permitted to treat animals in the United Kingdom and other countries (with a few
designated exceptions, such as paraveterinary workers), Additionally, it is unlawful for
anybody who is not registered to use the title "veterinarian," to prescribe any
medications, or to provide medical care.

5. Jabatan Pertanian

The Malaysian government's Ministry of Agriculture and Food Security, also known as
MAFS or Kementerian Pertanian dan Keterjaminan Makanan, is in charge of the
following areas: agriculture, agro-based industry, agritourism, livestock, veterinary
services, fisheries, quarantine, inspection, agricultural marketing, pineapple industry,
agribusiness, botanical garden, food security, and food sovereignty.

There are 2 types of Agencies:

I. Federal department
1. Department of Agriculture Malaysia (Doa), or Jabatan Pertanian
Malaysia.
2. Department of Fisheries Malaysia (DoF), or Jabatan Perkhidmatan
Veterinar,
3. Department of Fisheries Malaysia (DoF), or Jabatan Perikanan
Malaysia
4. Malaysian Quarantine and Inspection services Department (MAQIS),
or Jabatan Perkhidmatan Kuarantin dan Pemeriksaan Malaysia.
II. Federal Agencies
1. Malaysian Agricultural Research and Development Institute (MARDI),
or Institute Penyelidikan dan Kemajuan Pertanian Malaysia.
 2. Farmer’s Organization Authority (FOA), or Lembaga Pertubuhan
Peladang (LPP).
3. Federal Agricultural Marketing Authority (FAMA), or Lembaga
Pemasaran Pertanian Persekutuan
4. Fisheries Development Authority of Malaysia, or Lembaga Kemajuan
Ikan Malaysia (LKIM)
5. Muda Algriculture Development Authority (MADA), or Lembaga
Kemajuan Peladang Muda.

6. SIRIM

SIRIM Berhad, previously the Standard and Industrial Research Institute of Malaysia
(SIRIM), is a business entity that reports to the Minister of Finance Incorporated and is
entirely owned by the Malaysian government. The Malaysian government has given it
the responsibility of serving as the country's standard-setting and quality-assuring body
and as a champion of technical innovation in Malaysian business. Shah Alam, Selangor,
is home to the primary administrative offices. The corporation was established on
September 1st, 1996 through the corporatization strategy of the Industrial Research
Institute.

7. Jabatan Kastam Diraja Malaysia.

The Malaysian Ministry of Finance is responsible for overseeing the Royal Malaysian
Customs Department. JKDM serves as the primary indirect tax collector for the nation
while promoting trade and upholding the law. The Director General of Customs (Turus
III) is in charge of JKDM's top management, which is supported by three deputy
directors: the Deputy Director General of Customs' Customs/Inland Tax Division (Jusa
A), the Deputy Director General of Customs' Customs Enforcement/Compliance Division
(Jusa A), and the Deputy Chief Director of Customs Management Division (Jusa B). The
Royal Malaysian Customs Department is divided into numerous sections, including the
Technical Services Division, the Enforcement Division, the Inland Tax Division, the
Compliance Division, and the Customs Division.

The Function of Jabatan Kastam:

1. Obtain national revenue through taxes and customs duties, including import
and export tariffs, excise taxes, sales and service taxes, surcharges for
unusually high profits, vehicle surcharges, and non-tax income.
2. With the change in government policy that prioritises the industrial sector,
JKDM has prepared trade facilitation in the form of incentives and facilitation
to the industrial and commercial sectors that seek to develop the national
economy.
3. enforcement of the Customs Act of 1967, the Dangerous Drugs Act of 1952,
the Anti-Money Laundering Act of 2001, the Sales Tax Act of 1972, the
Service Tax Act of 1975, the Excise Act of 1976, the Free Zone Act of 1990,
and other relevant ancillary laws.

8. Jabatan Perkhidmatan Kuarantin dan Pemeriksaan Malaysia (MAQIS)

The Malaysian Ministry of Agriculture and Food Industry is where the Malaysian
Quarantine and Inspection Service (MAQIS) is housed under the Malaysian government.
Tan Sri Muhyiddin Yassin, Malaysia's Minister of Agriculture and Agro-based Industry in
2005, was the one who came up with the idea for its development. The Australian
Quarantine and Inspection Services served as its model (AQIS).
3.6 Function:

- This department's primary duty is to oversee all 57 Malaysian border entry points
by conducting inspections on all agricultural imports to ensure that every
Malaysian is protected. The department also forbids the importation of dangerous
agricultural products, and numerous attempts to do so have been successfully
blocked.
- In addition, this division offers inspection, enforcement, and quarantine services
at all Malaysian border crossings.
4.0 EXPLAIN PROBLEM IN FOOD EXPORT AND IMPORT

In the import sector, there is a lot of unpredictability. One issue with imports of food is the
rising complexity of international trade as well as the conflicts and trade disputes between
nations. The import deal has issues of its own as well. Among the matters that must be
included in the import contract are payment methods, the kind of payment currency, and
currency fluctuations. The corporation must hire a licenced customs broker if it plans to
import food products often from other nations. The company must thoroughly understand the
suppliers and get in touch with their sources because they are sometimes located on the
other side of the globe.

If done incorrectly, this could be one of the issues with importing food. The quality of the
food that is purchased must be carefully assessed; else, issues may arise. Due of their lack
of experience and intense desire, importers frequently make blunders in their initial deal. In
significant deals, guarantees and securities are frequently used. There are typically a lot of
dangers in these trades because there aren't enough food resources. Food imports are
subject to more limitations than other items. These commodities may have certain health
requirements or limits, making importation more challenging for the importer. Various
products are subject to requirements that may call for approval, certification, or inspection by
other ministries. One of the challenges with importing raw food ingredients is getting these
permissions. Costs for imports from various nations and economic zones vary.

4.1 Quality inspections

Before shipment and arrival, food is subjected to quality inspection. This process
differs from nation to nation. Although import procedures are being carried out more
faster than in the past, they are nevertheless not always straightforward and come with
their own set of issues. The largest importer of food ingredients is PersianUtab.
Production of food requires high-quality raw ingredients. One requirement for the
manufacture of high-quality food products is the accessibility of quality raw materials.
Exact quality control of raw materials is now crucial since processes must be automated
more to achieve improved efficiency, stability, and cost savings. Because attaining
sustainable manufacture of high grade food items requires good quality raw resources.
 By making sure that suppliers are carefully chosen and approved as well as that their
use is properly designed, the processor can have a positive impact on the quality of the
raw materials. The majority of quality requirements can be fully stated in the
specifications that can be given to the supplier, ensuring that they are fully aware of the
necessary standard. It is obvious that the processor must, to a significant extent, match
the raw material selection to the quality of the finished product.

4.2 Decreased nutritional potential

Imported fresh fruit and vegetables also need to be gathered early. This keeps it from
ripening while travelling, which would affect the flavour. They haven't developed to their full
nutritious potential if they are picked too soon. Both delayed and artificial ripening require
chemicals, which is undoubtedly bad for health.

4.3 Increased food waste

Food waste is a major issue as well. The chance of bruises and spoilage increases with
distance travelled. Therefore, more packaging is needed to safeguard the food. It's possible
that some businesses will import more food than they actually need, which will result in food
waste.

4.4 Transportation cost

An major component of import expenses is paying transport companies for shipping

products, and transportation can be accomplished in a variety of methods. Importing food
raw materials is possible by automobile, rail, ship, and/or aeroplane. But there are expenses,
inconveniences, and limitations associated with each of these gadgets. Air travel is the most
effective and efficient method of importation, but it is also the most expensive. Airport taxes,
fuel, additional currency fees, and additional transportation from the receiving airport are
examples of additional expenses. Some of the key factors to consider when shipping are:

 Size and weigh

 Delivery speed
 Value of goods
 Warehouse, port and inspection costs

4.5 Payment processing

When exporting somewhere, one of the biggest challenges you might anticipate is the
financial aspect of the process. The most obvious factor is the disparity in tax systems
between nations, which has a significant impact on the overall cost of exporting commodities
like electrical equipment. Naturally, this mostly affects the prices that items can be brought
for in terms of how much the recipient is paying to obtain them, but the financial disparity
also influences the importing process on the other end. Each nation will have its own laws
and borders, as we will explain later, which will also have an impact on how payments are
processed. This is because the importer might not be aware of the differences in import fees
due to currency rates, which frequently results in greater financial consequences for the
exporter.

4.6 Various legal systems

You must also take into account the numerous legal considerations associated with
international exporting. Several counties have extremely complicated bureaucracy systems
that demand several permits and licences in addition to documentation and certificates in
order for the cargo to be processed. For your information, the exporting company will
typically renew or maintain most of these to ensure that they are authorised to conduct these
activities around the world. Having said that, certain exporting projects may also need for
one-time licence agreements; this is frequently based on the products being exported as well
as the nation to which they are being imported.
5.0 Opinion To Overcome This Situations.

Exporting can be a challenging procedure with many obstacles. There are a number
of things you should consider before exporting, from legislation to funding. Make sure you
keep the following things in mind if you're considering of trading internationally.

5.1 Making the initial financial investment

If firms are not prepared for the initial financial commitment required to sell to foreign
markets, their objectives may be derailed. Costs will quickly accumulate due to trips
to your new target markets, the hiring of new employees, and the production of
goods for sale. Before making any decisions, talk to your accountant about your
financial condition. Also, keep in mind the big picture. In the first year, it's unlikely that
you'll get any real returns.

5.2 Making contacts

Your company's domestic division undoubtedly heavily depends on the relationships

you've developed over the years with both customers and suppliers. You must now
begin establishing these connections in a foreign nation where a language barrier
might exist. Better corporate ties can be created through face-to-face interactions.

5.3 Understanding what new markets want

Do your market research, just like you would when launching a new product in the
UK, because you may need to make some adjustments to your product line to make
it appropriate for an overseas audience or comply with local rules. You should also
consider how your new target market will make purchases and what kind of post-
purchase support they will need.

5.4 Cultural differences

It's crucial to recognise and accept any cultural variations because every country
does business in a somewhat different way. Learning some of the regional business
 customs may help foreign investors enter markets that might otherwise be closed to
them

According to Euromonitor, over 2021 saw the beginning of Malaysia's economic

recovery, which was fueled by fiscal stimulus programmes, rising private consumption, and
robust exports. In 2022, economic growth is expected to pick up steam thanks to persistent
policy support, strong external demand, rebounding domestic activity, and favourable labour
market conditions. The country faces downside risks from political unrest, supply chain
disruptions, and pandemic-related threats.

 Over the medium term, Malaysia's economy is anticipated to develop at an

average annual real rate of 3.9% after seeing real gross domestic product (GDP)
growth of 3.4% in 2021.
 Over the medium run, it is expected that Malaysia's inflation rate would stabilise
at about 2.5%.
 Malaysia continued to be a net exporter in 2021 despite a 25.1% increase in
exports and a 25.0% increase in imports.
 Malaysia saw a significant increase in FDI inflows over 2021.
 Malaysia's public debt increased from 67.4% of GDP in 2020 to 69.1% of GDP in
2021, which is higher than the regional average of 94.7%.

The anticipated population of Malaysia in 2022 is 33.8 million (CIA World Factbook
Est.). 10.8 million higher than in the year 2000. Due to the high proportion of women in
reproductive age, Malaysia's population will increase over the coming decades, but at a
slower rate. As the working-age population (15–64 years old) has been gradually increasing,
the youth population has been declining.

The labour market in Malaysia has been able to accommodate the rising number of
job searchers, resulting in steady economic growth. But the country's advantageous age
distribution is shifting, and starting about 2020, Malaysia's population began to age quickly.
Malaysia will need to improve the education and training of its labour force, increase
productivity, and continue to grow the proportion of women employees in order to further
develop its economy as the population ages. 6.5% of the population, or about 2.2 million
people, are over 65. In Indonesia, the median age in 2022 is 29.2 years, which is 5.4 years
more than in 2000.

Malaysia has one of the world's most open economies and is heavily reliant on global
trade. In order to create jobs and increase incomes, a country must be open to commerce
and investment. Malaysia wants to lead the export of electrical and electronic goods and
components as it moves toward higher value-added industries.

Together with the other nine Southeast Asian nations, China, Japan, South Korea,
Australia, and New Zealand, Malaysia signed the Regional Comprehensive Economic
Partnership (RCEP), the largest trade deal in the world, in November 2020. The RCEP
accounts for about a third of global GDP. The accord is expected to boost regional value
chains, increase intraregional trade and investment, and support transparency and
standardisation of technical rules. In order to improve its bilateral trade and investment
relations, Malaysia and the UK established the Joint Committee on Bilateral Trade and
Investment Cooperation (JCBTIC) in 2020.

U.S. exporters can find good possibilities in the retail food and food processing
sectors as Malaysia's economy starts to recover from the effects of COVID-19, according to
the USDA Office of Agricultural Affairs, OAA, in Kuala Lumpur. The hotel, restaurant, and
institutional (HRI) sector may take longer to recover, but Malaysians enjoy eating out, and
continuing tourism development will support further expansion in this industry. Malaysia is a
desirable market because of its highly urbanised population, rising per capita income, and
favourable perception of American food products—providing, of course, that U.S. suppliers
can negotiate Malaysia's halal certification requirements and competition with other
significant food exporting nations.

Malaysia is open to foreign trade and has a stable political and economic system.
Modern and effective services are available in banking, communications, transportation, and
healthcare. It is one of Southeast Asia's most developed countries. With a 2021 GDP per
capita income of US$29,340 on a Purchasing Power Parity (PPP) level, more over 60% of its
population belongs to the middle-to-upper income consumer category.

The multibillion-dollar food industry in Malaysia is propelled by a growing economy,

rising consumer expenditure, and a thriving tourism sector. Malaysia's trade and regulatory
laws are comparatively open and offer opportunities for a wide variety of imported foods and
beverages, despite the fact that the nation's halal rules complicate trading for some
products. Malaysia imported $23 billion worth of agricultural-related goods in total in 2021,
with the US accounting for about 6% of those purchases.
Conclusion

Finding theories and concepts relating to food import and export requirements was the goal
of this assignment. It is clear from this analysis that there are numerous requirements for
food import and export. There are numerous organisations that handled import and export.
Each agency received a separate position. Importing and exporting food are certainly not
exempt from the problems that exist in this planet. We already identify the problem and offer
our own opinion for how to overcome it. We fervently hope that this study will one day be of
assistance to you all.
Appendix
Reference

1. https://www.ecoandbeyond.co/articles/disadvantages-of-importing-food/
2. https://persianutab.com/difficulty-and-problems-of-importing-food-raw-materials/?
lang=en
3. https://blackthorneit.com/blog/17/difficulties-faced-by-exporters-in-international-trade