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Food Consumption Patterns and Trends in Malaysia

Since the economic crisis in 1997, there has been notable success in Malaysian 
economic, where Malaysians are getting wealthier and food consumption is 
undergoing transitional changes. Thus, it is motivational to gain a better 
understanding of food consumption patterns and trends in Malaysia. This study 
intends to investigate food consumption patterns in Malaysia. This is followed by 
the analyses on the effects of socio-economic factors on food consumption and is 
further used to do projection for the future food consumption in Malaysia until 
This study used data from the Household Expenditure Survey (HES) 200412005. 
Data from the HES was obtained from 14,084 samples in Malaysia. In order to 
investigate food consumption patterns in Malaysia, this study utilized the 
methodology of a multi-stage demand system, incorporating demographic variables 
to estimate income and price elasticities. In order to analyze the effects of socioeconomic 
factors on food consumption, 36 single equations of Tobit model were 
estimated. With quantity of food consumed as the dependent variable, the equations 
were also used to project future consumption of the 36 food items. 
The estimated positive and inelastic income elasticities show that all the food items 
are normal goods, except for other meat. Special attention was paid to demand for 
rice, with positive income elasticity of 0.1325 concerning the question whether rice 
is an inferior good in Malaysia. While mutton (0.3196), prawn (0.3745), and 
processed h i t s (0.3088) recorded the highest income elasticity over other food 
items in the food group respectively. On the other hand, own-price elasticity of each 
food item shows negative signs, complying with law of demand. Compensated and 
uncompensated own-price elasticities of rice (-0.5756 and -0.5791) were the lowest 
in its food group. These results indicate that rice is a necessity and still playing its 
role as staple food to Malaysians in 200412005. 
The determinant. of consumption of food items are found to be generally attributed 
to household income, urbanization, age of household's head, household size, and 
race. Most of the equations witnessed that gender and employment status of 
household's head were not significantly related to quantity of food consumed. By 
taking into account of socio-economic effects, overall projection results show 
increasing trends for future consumption of the food items, except for rice and other 
meats.