The data is derived from a total of 3,724 registered business entities with self-declared activities in poultry
by NURUL SUHAIDI / Pic by TMR
ONLY 55.12% of the 402 companies in the poultry industry that filed financial data in the last 12 months were profitable, according to the latest report by the Malaysia Global Business Forum (MGBF).
The report, Malaysia’s Poultry Ecosystem: An Analysis of Business Data, took into account the current period in which Malaysia’s poultry industry is facing challenges from the impact of the pandemic, the Russia-Ukraine conflict and issues with chicken supply.
The extrapolated data is derived from a total of 3,724 registered business entities with self-declared activities in poultry and focused on 627 companies for a deeper profitability analysis.
In addition, while the report analyses the profitability of the sector through the business data, the report also indicates a data gap that may hinder growth for the overall sector.
According to the report, data silos have been identified as a threat to informed decision-making which calls for a profound data consolidation effort prior to a deeper company’s stakeholder review.
This report examined the data solely obtained through publicly available data sources primarily the registration of companies and registration of businesses databases, both of which are under the custody of the Companies Commission of Malaysia (SSM) and the Domestic Trade and Consumer Affairs Ministry.
Based on data derived on June 24, it was also identified that one company generated a revenue of over RM1.3 billion, while the company that recorded the highest profit clocked in slightly below RM10 million for the year 2021.
During the same period, 46.27% of registered business entities did not exceed RM1 million in profits.
Meanwhile, in terms of the 178 business entities that registered losses in 2021 and 2022, the majority registered a loss of not more than RM1 million.
The most concerning numbers are the 13 business entities that experienced more than RM9 million in losses, where a deeper multi-year analysis is required to establish whether this is an ongoing trend or a spike due to current external conditions.
Yet, the data shows an upward trend in the number of registered business entities.
In response, MGBF founding chairman Nordin Abdullah said domestic and foreign investors are increasingly making data-driven investment decisions.
“For Malaysia to be competitive in the context of the global economy, reliable and up-to-date business intelligence needs to be accessible.
“There is an identified requirement to consolidate business data and improve data governance in the poultry sector,” he said in a statement today.
To achieve that, he added, data should be searchable at the custodian level.
Data that is effectively tagged will ensure business and economic data can be correctly derived on an industry-wide basis, which will empower policymakers, and overall stakeholder decisions.
Nordin also noted that through a driven data approach, the business will reap more benefits, especially in terms of funding initiatives.
“There is an opportunity to design a desirable future through data resilience. Consumers remain the most important stakeholder in the overall equation,” he added.
The report also suggested that another important starting point is to ensure that the nature of business for each entity is registered correctly at SSM.
“Unnecessary data silos should be removed so that strategic decisions can be made in the context of subsidies, supply chain integrity, human capital development and investment promotion,” the report said.