Government Policies on Meat and Beef Import and Manufacturing in Malaysia and China

Running Head: INTERNATIONAL MARKETING REPORT
INTERNATIONAL MARKETING REPORT
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Introduction
The meat industry of Malaysia is belonged to the food and agricultural industry which is
well established in the country with a worth of RM14.1 billion in 203. Apart from the general
livestock manufacturing, the industry is also popularise with the prospect of producing 76% of
poultry meat. As per the research of Wahab (2017) it can be argued that the development of
commodity beef like mutton was slower than poultry since 1960 to 2010. Therefore, the food
stock is primarily depended on the import of beef and mutton from various countries like
Australia, New Zealand, India and Thailand. Moreover, there are different government policies
regarding the production and manufacturing of beef and mutton production within the country in
the form of National Agricultural Policy and the National Agro Food Policy (export.gov, 2018).
Therefore, Bangi Agro, one of the leading Meat and beef manufacturing company in Malaysia is
willing to export beef and meat in the Chinese market. Based on this understanding, this essay
aims to focus on the government policies and establishment that leave a huge impact on the
import and manufacture of meat and beef in Malaysia. Moreover the essay also compares the
policies of Malaysia and China and figures out the scope to enter into the Chinese market
effectively.
Literature review
As a Muslim dominated country, the practice of eating beef and meat is within the culture
of the people of Malaysia (ap.fftc.agnet.org., 2015). The basic food standards and regulation puts
emphasis on the labelling of both the imported and domestically produced food items. It contains
a clear description of the product with a list of ingredients in descending order of proportion by
weight. For the meat or animal products it is essential to mention the animal. The labelling must

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be in English or Bahasa Malaysia (fao.org, 2019). Besides this, the Halal certification is also
required in Malaysia. The research of Ngumbang (2017) attributed that the Malaysian
government treats the policy in the agricultural sector as the third engine of development.
According to Sahar and Chamhuri (2016) the products originate from the slaughterhouse have
been inspected by the Malaysian veterinary and religious authorities. In this regard, the
Malaysian Islamic Development Department (JAKIM) is the governing body to monitor and
supervise the slaughter and processing of the meats and poultry (Ngumbang (2017)). Therefore,
the vision and motive of the government clearly reflect in the Third National Agricultural Policy
(NAP3) (Fsis.usda.gov, 2016). As a matter of fact, the Malaysian government is willing to
establish an international market of halal certified products within the country. Therefore, foreign
direct investment, R&D support for the multi-national companies are also developed inside the
country.
However, the Chinese government puts a restricted policy on the export of meat and beef.
The government tie up with the export country is necessary in case of doing business in China.
According to Leonidou et al. (2015) China is popular for its exports and limited products are
imported in the country. Therefore, it is highly restricted and important for the business
organisations to understand the importance of the export and the scope to earn profit highly.
Besides this, Heinrich and Pleines (2015) articulated that draconian government policies are also
left huge impact on the export of product in China. The magnanimity of the Chinese market with
world’s largest population makes China a lucrative space to do business but the intense
interference of the Chinese government de facto makes it uncomfortable for both important and
export.
Critical analysis of the government policies