Malaysia: Cotton and Products Annual

Post forecasts consumption of cotton in the Malaysian textile industry at 290,000 bales in marketing year (MY) 2022/23, a 3.3 percent drop from the previous year post’s estimate. The expected reduction is based on textile companies shifting their operation to other South-East Asian countries as the cost of labor increased in Malaysia with the revision of new minimum wages on April 1, 2022. Imports in MY 2022/23 are forecast at roughly 650,000 bales, slightly higher than the 600,000 bales imported in the previous year as price of cotton is expected to stabilize and traders re-stocking in Malaysia for trans-shipment markets.