Malaysia's madu kelulut, roti pratha, spices in demand in the US

KUALA LUMPUR - United States (US)-based market exploration firm Enescorp International LLC, which has helped 15 Malaysian companies in the food industry penetrate the US market, is set to help 30 more local players expand their presence there by year-end.

Chief executive officer (CEO) Norizan Sharif said Enescorp, which has an office in New Jersey, has assisted Malaysian companies to enter the US, which has a population of over 330 million, since 2018.

"Over the past few years, we have imported a diverse range of Malaysian products into the US, including beverages, stingless bee honey (madu kelulut), nipa palm sugar cubes (gula apong), Sarawak black and white peppers, spices, instant noodles, snacks, chocolate cereal, and freezer pops,” he told Bernama recently.

He said that consumer response has been varied, but these Malaysian products have been well-received particularly by the Caucasians and Hispanics.

Roti pratha especially stands out in popularity, Norizan said.

"It is so well-regarded that even other South Asian manufacturers market their products as Malaysian roti pratha. This speaks volumes about the product's quality and appeal. Among the Arab communities in the US, Malaysian mixed nuts, known as ‘Malazie nuts’, have gained a notable reputation,” he said.

These mixed nuts offer a unique blend of flavours that resonates well with these communities, he said, adding that Malaysian spices are also performing well, highly regarded for their distinctiveness and quality.

Norizan said that in order to develop a company’s market entry strategies, Enescorp looks at how both profit and non-profit organisations in the US can support market access programmes.

"One significant influence was the Food Innovation Center (a business incubator) at Rutgers University in New Jersey, from which Enerscorp adopted the soft-landing programme.

"The programme’s framework has been instrumental in helping us create a structured and supportive pathway for Malaysian companies entering the US market,” he said.

Meanwhile, Norizan said local stakeholders have also shown interest in the company’s initiative in developing a platform for Malaysian products in the US market.

"We have been honoured to receive visits from the group CEO of SME Bank, CEO of Centre for Entrepreneur Development and Research (CEDAR) and many others.

"Their visits underscore the importance of our mission and provide valuable insights, support and invaluable learning experiences. We are now ready to scale up significantly,” he said.

According to him, Enescorp is experimenting by marketing products on various platforms, including retail outlets, wholesalers, and online marketplaces.

The plan is to continue to expand the product range and improve market strategies, as the company anticipates further growth in revenue and market presence, he said.

"We are pleased to see that some of these products are also being tested in the US food service industry (such as in fine dining restaurants) and as cosmetic ingredients, further diversifying their market potential.

"While our (Malaysian products’) revenue figures are still modest, they show an upward trend, reflecting growing consumer interest and acceptance,” he noted.

On challenges to enter the market, Norizan said the US imposed stringent regulatory requirements to ensure that products are safe for consumption and are properly labeled.

"The US Food and Drug Administration (FDA) imposes the same rigorous standards on both local and foreign food manufacturers.

"Key regulations include the Food Safety Modernization Act, which mandates compliance with the Current Good Manufacturing Practice regulations, Food Facility Registration, and the Foreign Supplier Verification Program (FSVP),” he said.

According to Norizan, addressing these challenges requires a multifaceted approach including training programmes, technological upgrades, infrastructure development, funding opportunities, and market access support.

"For example, Malaysia External Trade Development Corporation (MATRADE) export promotion programmes help Malaysian companies understand international market dynamics and establish necessary networks.

"SME Corporation also provides training and capacity-building services to ensure retail readiness and compliance with international standards,” he noted.

He said these programmes provide invaluable exposure and networking opportunities, helping Malaysian products gain visibility and traction in the market.

Malaysia is currently the US's 17th largest trading partner, with exports primarily consisting of rubber-related products, machinery, and electrical equipment.

In 2023, Malaysia’s trade with the US totalled RM250.25 billion, which accounted for 9.5 per cent of the country’s total trade, according to MATRADE.

"Exports to the US in 2023 recorded the second highest value thus far to reach RM161.3 billion, declining by 3.5 per cent due to lower exports of wood products, rubber products as well as iron and steel products,” it said. - BERNAMA