By Yasmin Ramlan
SHAH ALAM, April 14 — The Selangor Food Warehouse (GMS) launched recently is a major intervention to regulate market forces, prevent price shocks, and strengthen Malaysia’s food security.
The initiative is a buffer against inflation and supply chain disruptions by maintaining a steady supply of essential goods, especially staples such as rice and meat.
However, while this effort is crucial to managing short-term price stability, economists say long-term food security requires a shift towards increased production and sustainable supply. The GMS’ effectiveness as a national food security hub will depend on integrating production reforms and adaptive governance.
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Menteri Besar Dato’ Seri Amirudin Shari speaks at the launch of the Selangor Food Warehouse in Port Klang on March 22, 2025. — Picture by REMY ARIFIN/MEDIA SELANGOR[/caption]
According to economists Prof Emeritus Barjoyai Bardai of Malaysia University of Science and Technology and Samirul Ariff Othman, international relations analyst and adjunct lecturer at Universiti Teknologi Petronas, investing in plantation repurposing, vertical farming, and other modern agricultural techniques will ensure food system resilience, thus lowering reliance on imports and mitigating price volatilities.
“By storing and periodically rotating these stocks, the government can intervene in the market by releasing food supplies when prices surge, thus preventing excessive inflation.
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Samirul Ariff Othman, international relations analyst, economist, and adjunct lecturer at Universiti Teknologi Petronas.[/caption]
“Selling these goods at 15 per cent to 20 per cent below market prices through Jualan Ehsan Rahmah and Ehsan Mart ensures affordability for lower-income households, mitigating the impact of food inflation.
“Additionally, having reserve stock shields consumers from price shocks caused by supply chain disruptions, global food crises, and currency fluctuations,” Samirul told Media Selangor recently.
While the primary goal of the food warehouse is to strengthen domestic food security, it presents a long-term potential to expand agro-based exports.
By ensuring a stable supply chain, Samirul emphasised that local producers may be more confident to scale up production and venture into processed food exports.
He said a consistent surplus could also position Selangor as a regional supplier, which would attract foreign buyers and lower dependence on imported goods.
Samirul added that if the GMS is successful, similar initiatives in other states could enhance Malaysia’s food self-sufficiency, lower import costs, and contribute to the growth of the local food industry.
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People buy basic goods at the Jualan Ehsan Rahmah Mega Chinese New Year Sale at 3K Complex in SS13, Subang Jaya, on February 9, 2024. — Picture by REMY ARIFIN/SELANGORKINI[/caption]
Supply v demand
Selangor is the first state in Malaysia to set up a food warehouse in its bid to strengthen the security of carbohydrate and protein supply, especially during emergencies.
On March 22, Menteri Besar Dato’ Seri Amirudin Shari said the launch of GMS, an initiative under the Selangor Agricultural Development Corporation (PKPS), will see Tiong Nam Logistics Warehouse store 5,000 tonnes of rice and 1,000 tonnes of frozen meat for a period.
Economist Barjoyai opined that inflation remains a persistent challenge as prices increase when demand exceeds supply. He explained that this fundamental economic principle applies to all goods and services: when supply is limited but demand is high, prices inevitably rise.
“Our strategy should be to keep supply higher than demand. While industries continue to supply the market, the government must maintain a buffer stock to ensure a constant flow of goods.
“This creates the perception of ample supply, preventing panic buying. When people see that essential items are readily available, households won’t rush to stock up, keeping the market stable and well-regulated,” he told Media Selangor.
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Pallets of state government-owned frozen beef in storage at the Selangor Food Warehouse in Port Klang, as seen on March 22, 2025. — Picture by REMY ARIFIN/MEDIA SELANGOR[/caption]
‘Deeper approach’
Acknowledging that the food warehouse is a strong initiative, especially for emergency preparedness, Barjoyai stressed that the GMS could help stabilise rice prices if managed effectively, while also creating jobs.
“Overall, I believe the state government needs to take a deeper approach to find better ways to improve the well-being of the people.
“If the objective is to keep prices low, then the focus should be on maintaining a green buffer stock to stabilise the market by ensuring continuous supply, creating an excess that helps control prices,” Barjoyai said.
Explaining this approach, Samirul highlighted that beyond supply control, stabilising food prices requires strategic market intervention. He noted that government-backed price controls help curb inflationary pressures, encouraging retailers to keep prices competitive.
“By maintaining a consistent supply, the food warehouse discourages hoarding and speculative pricing, ensuring market stability and affordability.
“However, long-term success depends on the efficiency of stock management, procurement costs, and the ability to respond quickly to market fluctuations,” he added.
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People buy basic goods including chicken and eggs during the Mega Aidiladha Jualan Ehsan Rahmah at Dataran Pantai Batu Laut, Tanjong Sepat, on June 14, 2024. — Picture via FACEBOOK/PERBADANAN KEMAJUAN PERTANIAN SELANGOR - PKPS[/caption]
Food security in other countries
Samirul said the GMS differs from large-scale food security models in India and Brazil, but shares several strategic similarities.
He explained that India’s Public Distribution System stores grains in government warehouses and distributes subsidised food to the poor.
“The challenge in India is leakage and inefficiency, whereas Selangor’s FIFO (first-in-first-out) system may improve cost management.”
Meanwhile, Brazil’s Food Acquisition Programme stabilises food prices while supporting smallholders. It resembles Selangor’s price-control efforts but has broader economic impact.
“The Selangor model is state-driven, allowing for targeted intervention. Compared with India and Brazil, it is smaller in scale, but it can be expanded if proven effective,” he said.
The GMS ensures product freshness and safety with the FIFO system, which prioritises the distribution of older stock first to minimise waste.
On March 25, PKPS group chief executive officer Datuk Mohamad Khairil Mohamad Razi said this approach prevents food supplies from sitting unused until they expire. Instead, stock is regularly replenished and made available through Jualan Ehsan Rahmah, ensuring a continuous and safe supply for consumers.
Both Barjoyai and Samirul agreed that the GMS contributes to job creation across various sectors. Barjoyai emphasised that any economic activity, such as establishing a food warehouse, naturally generates employment as it requires workers for operation.
Meanwhile, Samirul highlighted multiple potential jobs related to the GMS, including roles in logistics, supply chain management, agriculture, retail, and technology. He said the warehouse’s operations, from transport to digital inventory tracking and cold storage management, could create both skilled and semi-skilled jobs and boost economic growth.
