As more women executives ascend the corporate ladder in Malaysia, they choose to entertain guests at restaurants, rather than at home.

Women in middle-income and upper income groups enjoy "ladies only" lunches, teas or dinner parties.

Food and beverage manufacturers in the United States could boost sales by doing market research on what drinks and foods are best received at these special celebrations.

As the country recovers from its economic tumble, Malaysia’s textile mills and importers are re-acquainting themselves with suppliers in the United States.

In the first 8 months of fiscal year 1999, the United States succeeded in selling $6.7 million worth of cotton to Malaysia. The figure had gone up to over $10 million in the first 8 months of fiscal year 2000.

For many in the U.S. cotton industry, Malaysia’s recovery has been a welcome one. Sales of pima cotton, grown mainly in the U.S. Southwest, rose from zero to 36 metric tons, valued at over $200,000. Yarn exports went from 80 metric tons to over 1,000 in the same time period–with value increasing from $55,000 to over $600,000.

Malaysians commonly hold elaborate wedding dinners, but they’re no longer served exclusively at home. Increasingly, the banquet may be held at a middle- to high-end restaurant because of the social status implied, rather than for the sake of convenience.

Religion plays a key role in food choices in Malaysia, a country with strong Islamic ties.

The Muslim population requires meat and other food products to meet specific halal requirements.

Strong prohibitions against pork and alcohol for the Muslim population are respected. However 40 percent of the non-Muslim population who are mainly Chinese and Indians, generally consume both.

Buddhist and Hindu believers generally do not eat beef, and some strict practitioners are vegetarian.

Malaysia’s market for poultry meat offers much to U.S. exporters. For one thing, poultry products can be imported duty free. As with cotton, this is a market where you can see trade bouncing back: In 1997, before the crisis, poultry sales were at $3.1 million; in 1998, they dipped to $1.7 million. Then, in 1999, they rebounded to $3.7 million, their highest level since 1970. There was a cooling off in exports for 2000, possibly from over-stocking in 1999.

Niche demand also exists for frozen turkey for high-end Western-style restaurants during the Christmas season.

Since Malaysia’s domestic poultry industry is also growing, there is increasing demand for baby chicks and breeding animals from the United States.

U. S. oranges, a winning bet in Malaysia, enjoy tariff-free status. Apples, pears, grapes and berries also have a sunny future in Malaysia’s hotels and resorts. Stone fruits like plums or cherries are also making inroads.

One special niche market is unique to the hospitality industry; hotels like to welcome guests with fruit baskets or display the fruit in buffets and decorations.

Malaysia’s total worldwide imports of fruit grew about 3 percent between 1994 and 1998. Tariffs are a reasonable 5 percent, except for oranges, which have no import duties.

China, with a little more than 37 percent of the market share, is still the dominant fruit supplier. Chinese suppliers do well in fruits that are specific to their region, such as mandarin oranges and Asian pears. The United States, with 22 percent market share, holds second place, with counter-seasonal Australia close behind at 20 percent.

One of the strongest U.S. exports may be its retail culture. Modern air-conditioned shopping malls continue to open in Malaysia. Food service players–whether they are restaurants or fast- food outlets–know that they must fight for lucrative sites within these shopping centers’ food courts.

They also know that they need to reach younger consumers, and that means menu diversification. Admittedly, Malaysian food culture–with its roots in Asian and Indian traditions–still dominates much of the restaurant industry. But more than 36 percent of the population is under age 15 and these consumers have a more open attitude toward new flavors. They will, of course, be the generation to dictate the future of Malaysia’s food tastes.

Mall mania certainly has done its bit for the Westernization of the Malaysian food menu. Restaurants such as California Pizza Kitchen, Chili’s, Dome (a local sit-down café serving Western-style food), Schlotzky’s Deli and Dave’s Deli (a local chain) are popular eateries at urban malls.

The United States may be second in fruit sales, but it ranks No. 1 as a supplier of potatoes, peas and corn. With more than 50 percent of the market, the United States dominates the competition in frozen starchy vegetables, mainly frozen potatoes. New Zealand, an exporter of frozen potatoes and other vegetables, comes in second with 24-percent market share.

Canada, often a fierce competitor thanks to its customer-friendly weaker dollar, comes in third at only 12 percent.

As far as tariffs are concerned, only sweet corn, at about 12 percent, is subject to one. Potato imports are duty-free.

While processed vegetable sales haven’t regained their pre-crisis levels of $19 million in 1997, they are well on their way. The total for 1999 was $15 million.

The forecast is for growth in the tourist industry, thanks to a favorable exchange rate for Malaysia’s currency, the ringgit, against the U.S. dollar and European currencies.

Moreover, it is Malaysia’s strategy to attract high-profile events such as Formula 1 racing and the Commonwealth Games. Trade sources report that high-end hotels and resorts will be built to accommodate the growing tourism industry. Tourists and business visitors’ spending on food and drink currently represents about 10 percent of the food service market.

It’s not often that you see product sales go up 2000 percent, but when it happens, the spike often correlates to a sprouting niche market. Sales figures start out tiny, so any growth is magnified. Still, these little whirlwinds can be a boon, especially to small start-ups.

Preserved, prepared red meats, which recently experienced just that sort of sky-rocketing 2000-percent growth, are a case in point. Beef jerky and other dried beef and veal products went from $5,000 in sales for October through May of fiscal year 1999 to a rip-roaring $136,000 projected for the same eight-month time period in 2000.

Another niche is seafood. In the first eight months of the year 2000, the United States sold $44,000 worth of canned salmon, representing mainly product samples for trade shows and new product introductions, which bode well for the future.

Sales of surimi, or processed whitefish, have seen notable growth. From October 1998 to May 1999, the United States sold only $74,000 worth to Malaysia. A year later, however, sales jumped to $262,000. Together, sales of salmon and surimi helped push overall growth in U.S. seafood trade to Malaysia up 13 percent.

The surimi is probably destined to become an ingredient in fish-based products such as nuggets, rolls or fish cakes. There are a number of small- to medium-sized Malaysian companies involved in frozen seafood production. Local production of surimi can’t meet the total demand.

Wine consumption in Malaysia increased significantly during the past five years, as evidenced by the upward trend in imports. Though 60 percent of the population in Malaysia are Muslims, the remaining 40 percent are Chinese and Indians, the potential wine consumers.

These Chinese consumers used to drink brandy but are now switching to wine as the price of cognac drinks has increased significantly due to high import tariffs. This group of consumers is getting more health conscious, and perceives red wine as a healthful drink.

Malaysian Chinese ages 18-25 are affluent trend setters who not only embrace wine but are eager to know more about it.

France and Australia are the major suppliers of wine to Malaysia. Currently, Australian wineries are very active in the Malaysian market. Australian wine exports grew from $1.8 million worth of sales to Malaysia in 1997-98 to $2.9 million in 1999, an increase of 63 percent.

Meanwhile imports from the United States increased from $1.3 million in 1998 to $2.4 million in 1999. According to trade sources, Australia is the United States’ greatest competitor.

Some markets seem immune to economic woes. Take the example of sugars, sweeteners and beverage bases. In 1998, when the financial crisis hit, the United States sold $25 million worth of these products to Malaysia. Yet in the following year, the number was down only slightly, at $21 million, and still higher than figures for the pre-crisis years. In the first eight months of fiscal year 2000, sales appear to be 140 percent above the first eight months of the previous fiscal year.

Most catering companies in Malaysia prefer to buy locally, but those serving airlines are looking for a greater variety of pastry and bakery products. The requirement for halal food products is strictly enforced, but that shouldn’t be a barrier to U.S. products with proper certification.

When dealing with these firms, exporters should be prepared to follow purchasing criteria to the letter–especially when it comes to matters of pricing and food safety.