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Malaysia faces the problem of low beef production, and in recent years, its government has been putting up efforts to relieve the pressure of insufficient domestic beef production.

Earlier this month, Felda Global Ventures Holdings Sdn Bhd (Felda Global) has entered into a major integrated livestock collaboration worth MYR688 million (US$214 million) with two partners, Allanasons Ltd and Felda Iffco Group, to establish Malaysia as the largest halal meat producer in Asia. Felda Global is part of a group of companies under the Malaysian government agency Federal Land Development Authority (Felda), which is the largest oil palm plantation operator in the world.

Prime Minister Datuk Seri Najib Tun Razak said at the signing ceremony held on June 7 2010 that Malaysia needs to develop its own supply to meet the country's growing demand for meat, particularly for beef and dairy. Najib Razak said, "Currently we produce only 25% of the beef consumed in Malaysia and, more surprisingly, only 5% of our domestic milk supply." Malaysia has to import the remainder to fulfil the country's demand.

The country is heavily reliant on imports for beef and mutton. As of 2008, it imported 103,000 tonnes of beef worth MYR883.9 million (US$274 million) and 18,000 tonnes of mutton worth MYR188 million (US$58 million), Deputy Minister of Agriculture and Agro-based Industries Datuk Rohani Karim said in 2008.

Indeed, its dependency on beef imports to meet domestic demand is apparent. In October 2009, the Malaysia-New Zealand Free Trade Agreement (FTA) was signed to facilitate the importing of New Zealand beef products to Malaysia, duty-free.

Aside from the country's heavy reliance on imports, Malaysia's demand for beef and dairy is hardly met due to another factor.

The stringent halal regulatory checks have often hindered the importation of halal-certified meat. Exporters must obtain a permit issued by the Malaysian Department of Veterinary Services to ensure the meat is halal. USDA said in its GAIN report, "…because of the issues with halal certification, only two beef production plants are registered to export to Malaysia."

With Muslims accounting for 60.4% of its population (as of May 2010 from CIA World Factbook), Malaysia consumes mostly poultry, beef and mutton. Only 19.2% are Buddhists and 6.3% are Hindus who do not consume beef.

As for the future, the pressure on beef supply is likely to continue. Agricultural researchers from the Universiti Putra Malaysia have reported, "Malaysian consumers are expected to consume more beef."

While the regulatory checks may pose an inconvenience to importing halal meat from overseas, religious needs have to be respected. Thus, Malaysia has made the strategic decision of growing their own beef, in which they can produce halal meat for the majority of Muslims in the country.