Up, up, up! Cost of living, insurance premiums, our weight… and now santan?!  

With Aidilfitri just around the corner, Malaysians are working on their preparations for Raya. Among the many important aspects, it is undeniable that many are looking forward to the feasting portion of the celebrations.

For those who are keeping a keen eye on their kitchen budget, you might have noticed that coconut milk prices are now through the roof! This is a dilemma for those who are trying to keep a tight rein on their spending while also wanting to serve up old faithful dishes that satisfy tastebuds.

So, why are coconut milk prices increasing so much? This article will dive into the reasons why and what other alternatives you can consider to keep your finances under control.

What the Data is Showing

Before we dive right in, it’s useful to look at what the data of coconut milk is showing first. Based on the Department of Statistics Malaysia (DOSM), the price of coconut milk rose by 2.2% every year from 2019 to 2023, and stable at a range of RM10.20 to RM11.00 per kilogram. However, price increased sharply by 17.7% in 2024 to RM13.05 per kilogram, and is now reported at RM18.00 per kilogram in February 2025.

Most of the price increase actually took place after October 2024. From here, we can focus on what went wrong in the coconut milk market from October 2024 onwards.

 

Shortage of Coconuts Due to Hot Weather Conditions

Coconut milk comes from coconuts. And, unfortunately, there has been a shortage of coconuts since July 2024 in Malaysia. People typically pay higher for things that are in short supply and the Federal Agricultural Marketing Authority (FAMA) reported that there was a up to 50% drop in coconut production in several major markets in Malaysia.

The culprit? Hot regional weather conditions and less rain from October 2024 onwards. Coconuts normally grow well in Malaysia as it has tropical weather with year-round sunshine and consistent rain. However, if it gets too hot and arid, coconuts tend to drop quicker and does not reach the stage of old coconut, from which we get coconut milk.

Yes, coconut milk is made from old coconut.

Many coconut farmers expected heavy rainfall to come in October 2024, but it fell short. There were more young coconuts dropping as a result, and Malaysians bought more of them as the weather was hot. This could be the impact of climate change making it harder for farmers to reliably predict weather conditions.

Imports of Coconut are More Expensive Too

It’s not just local conditions that are affecting the coconut market. Malaysia doesn’t actually produce enough coconuts for its own consumption. According to DOSM, Malaysia’s self-sufficiency ratio for coconuts is 70% in 2023 and it imports 30% of its consumption mainly from Indonesia.

That’s right, 98% of Malaysian imported coconuts comes from our neighbour. And they too, are experiencing the same problem as Malaysia – hot weather conditions and less rainfall. Indonesian coconuts cost about RM1.10 each before this, but rose to RM1.80 each in October 2024, and has now doubled to RM2.20 each as of 6 March 2025.

But that is not the only factor. In recent years, there has been a boom in demand for Indonesian coconuts, especially from China. This has lead to higher and higher prices for Indonesian coconuts in the world market.

Malaysia is Trying to Plant More Coconuts But…

In recent years, Malaysia has been trying to increase production of coconuts in the local market. Local coconut production rose by 11.9% from 557,354 tonnes in 2021 to 623,663 tonnes in 2023.

However, total consumption also rose by a strong 10.3% from 811,809 tonnes in 2021 to 895,396 tonnes in 2023. While it seems like Malaysian coconut farmers are gradually catching up to meet the local demand, there is still some ways to go before Malaysia is completely self-sufficient.

According to Agricultural Minister Datuk Seri Mohamad Sabu, the government has spent about RM15 million between 2021 to 2024, to

  1. Replant and plant new coconuts across 1,891 hectares of land.
  2. Rehabilitate 285 hectares of coconut farms

In 2024, RM3 million had also been allocated to produce 524,606 coconut saplings. However, since coconuts typically take about 5 years before they start producing fruits, these efforts efforts will probably only pay off two to five years from now.

More Imports from Indonesia & Controlled Prices as Short-Term Solutions

The Malaysian government has announced that it will import about 640 tonnes of coconuts per month during the Raya months from Indonesia, Sabah and Sarawak to Peninsular Malaysia to meet Malaysians’ demand. It is uncertain how much of that is from Indonesia but it is probably quite substantial.

Furthermore, it has also added coconut milk has been added to the Festive Season Maximum Price Control Scheme (SHMMP). The prices are now set at a maximum of

  • Peninsular Malaysia: RM17.50 per kg
  • Labuan: RM15 per kg
  • Sabah: RM12 per kg
  • Sarawak: RM9 per kg

Consider Other Alternatives

While not the same as Malaysians’ beloved santan, there are other alternatives that you can try:

  1. Evaporated milk
  2. Cooking cream
  3. Yogurt
  4. Dairy milk
  5. Non-dairy milk

Unfortunately, not all dishes can taste quite the same without the real stuff. But, bear in mind, the less coconut milk we consume, the better for our cholesterol, right? And for our finances too in these challenging times where the prices of almost everything seem to be scandalously high. It is also an opportunity to improvise and get creative with new recipes that excite your family and friends.

So, dear friends, don’t let the shortage of coconut milk dampen festivities. There are still lots of other delicious Raya food that do not require coconut milk, and many other aspects to Raya besides food to enjoy.

Wishing all our fellow Malaysians selamat menunaikan ibadah puasa and an early Selamat Hari Raya Aidilfitri 2025!

 

Let us know in the comments below how you are celebrating Hari Raya!

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