Cocoa cultivation: Towards strengthening Malaysia's position as competitive producer of high-quality cocoa beans

12 August 2025

TAWAU: The Deputy Minister of Agriculture and Commodities, Datuk Chan Foong Hin, highlighted Malaysia’s promising prospects for cocoa cultivation during the Cocoa Planting Encouragement Programme held in Sabah’s plantation sector. The event, part of the Sabah Series Two, brought together approximately 150 industry stakeholders, including plantation companies, farmers, entrepreneurs, and government officials, all focused on expanding cocoa planting nationwide.

In his speech,  Chan commended the Malaysian Cocoa Board (MCB) for organising the initiative, which aims to significantly increase cocoa planting areas through strategic government support. “This programme, with an annual allocation of RM550,000 from 2025 to 2030, represents a crucial step towards expanding cocoa cultivation and strengthening Malaysia’s position as a competitive producer of high-quality cocoa beans,” he stated.

Highlighting recent market trends, the Deputy Minister revealed that global cocoa prices have risen sharply, with 2024 data showing a 141% increase in the average price of dried cocoa beans, now reaching RM24,274 per metric tonne, a substantial jump from RM10,073 the previous year.

“This upward trend creates a lucrative opportunity for cocoa farmers and industry stakeholders, making cocoa planting more viable and profitable,” he added. He also noted that Malaysia is well-positioned to capitalise on this demand by establishing itself as a niche producer of premium, ‘single origin’ cocoa beans, which are increasingly popular in international markets.

Sabah, recognised as Malaysia’s leading cocoa-producing state, benefits from fertile land, a suitable climate, and a long-standing tradition of cultivating various crops. Currently, Sabah accounts for 24% of the 677 hectares of cocoa plantations across the country. The state’s cocoa industry has demonstrated promising growth, with several companies already exploring new planting initiatives, including small-scale trials with the aim of expanding to larger, commercial production.

The government’s support includes the distribution of high-quality cocoa seedlings free of charge, alongside technical guidance, training, and ongoing monitoring to promote best practices. From January to June this year, Sabah’s cocoa cultivation covered 89 hectares, with participating companies receiving 5,000 seedlings valued at RM50,000. The long-term aim of the programme is to increase cocoa planting nationwide by a further 2,750 hectares over the next five years.

Chan emphasised the significance of the open forum held as part of the programme, providing participants with the opportunity to engage directly with cocoa experts, share experiences, and address challenges such as soil suitability, farm management, and technology adoption. The initiative aligns with Malaysia’s National Agribusiness Policy and the Twelfth Malaysia Plan, which seek to foster cross-sector collaboration and active stakeholder involvement to ensure sustainable growth of the cocoa industry.

In closing, the Deputy Minister expressed hope that the programme would inspire greater interest and participation in cocoa planting among farmers and investors. He officially launched the Cocoa Planting Encouragement Programme, reaffirming the government’s commitment to expanding cocoa cultivation as a vital component of Malaysia’s agricultural development.