Malaysia's Flower Trade Recovers as Worker Shortages and Cheaper Imports Squeeze Growers

A recovery that still leaves growers under pressure

Malaysia's floriculture exports reached about US$98.4 million in 2024, recovering from the disruption of COVID-19 but remaining below the industry's revenue peak of about US$121 million in 2019. Across the country's two main growing hubs, Muar and Cameron Highlands, producers face a shortage of foreign workers estimated at 30 to 40 percent and competition from cheaper Chinese flowers.

Muar's coastal plains supply flowering shrubs and other plants for urban landscaping, including Singapore's streetscapes. Farther north, Cameron Highlands produces chrysanthemums for Japan and other export markets. Together, these areas helped place Malaysia among the world's leading exporters of ornamental plants and flowers.

The pandemic cut demand and reduced air freight capacity, disrupting an industry whose products must often reach buyers quickly. Exports have since recovered, but rising costs, changing consumer preferences and a growing digital marketplace are reshaping how farms produce and sell. Using the two stated dollar figures, the 2024 export value was US$22.6 million, or about 18.7 percent, below the 2019 revenue peak.

Malaysia's growers are responding with machinery, better planting materials, new sales channels and a wider range of crops. Their central challenge is to deliver consistently good plants and flowers while controlling the cost of labor, transport and imported supplies.

The industry's recent trajectory has three important reference points:

• 2019: Industry revenue peaked at about US$121 million.
• During the COVID-19 pandemic: Demand fell and air freight capacity contracted.
• 2024: Exports recovered to around US$98.4 million, while labor shortages and price competition continued to squeeze growers.

By October 10, 2025, that uneven recovery framed the choices facing farms, exporters and policymakers: how to improve productivity without losing the quality that draws repeat buyers.

Why Muar and Cameron Highlands grow different products

Muar's nurseries benefit from location and plentiful water. The district is within a day's drive of Singapore, the Klang Valley and peninsular ports, making it practical to move plants to major buyers. Reliable water supplies support large operations growing plants in containers throughout the year.

Many nurseries have trading ties with Singapore dating to the 1970s, when Malaysia became a dependable supplier of shrubs and trees for public projects. Orders have changed alongside urban planning priorities. Landscaping teams now seek shorter flowering trees, colorful shrubs and hardy ground covers suited to tight spaces and areas with heavy foot traffic.

Property development also shapes Muar's sales. New landscaping adds value to housing and commercial projects, so demand rises and falls with the property cycle. Nurseries must match their stock to both construction activity and the kinds of plants contractors want.

Cameron Highlands supplies a different market. Its cool climate supports high quality cut flowers, and more than 80 percent of Malaysia's cut flower exports come from the highlands. Stable temperatures and temperature changes between day and night help growers produce strong stems and consistent blooms.

Chrysanthemums are a specialty. They are widely used in Asian floral retail and are popular in Japan because they last well in a vase and have uniform color. A premium market has encouraged some former vegetable farmers to switch to flowers.

Higher prices and dependable demand make that switch attractive, provided farms meet strict standards for quality, grading and delivery. Grading means sorting flowers into consistent groups so buyers receive the stem quality and appearance they ordered. For export growers, meeting those requirements repeatedly is as important as producing an attractive bloom.

Worker shortages affect both yield and quality

Growers report a foreign worker shortfall of 30 to 40 percent. Floriculture requires substantial manual work, and its jobs are often described as dirty, dangerous and difficult. Local workers frequently prefer service or factory jobs that offer higher pay and less demanding outdoor conditions.

Government plans to reduce reliance on foreign labor add pressure. When farms lack enough workers, pruning, weeding and pest control are delayed. Yields fall, quality slips, and harvesting and grading take longer, leaving less time to meet delivery schedules.

Cameron Highlands growers face particular risks because flowers must be harvested within a narrow window. Missing that window reduces how long they remain fresh in a vase and lowers their export value. A shortage of workers can therefore affect both the number of stems sold and the price each stem earns.

Farms are introducing automation gradually. Potting machines, simple conveyors, drip irrigation and fertigation systems reduce repetitive tasks. Fertigation supplies fertilizer through irrigation water, allowing farms to manage watering and feeding together. Shade nets and inexpensive greenhouse structures protect crops and can reduce pesticide use.

Larger businesses are testing machinery for selected transplanting and grading tasks. Training remains essential: skilled workers supported by suitable tools and clear standard operating procedures can manage more plants. Industry groups and agencies can support this through apprenticeships, short courses and matching local job seekers with farms offering steady wages and basic benefits.

Cheaper flowers meet rising production costs

Imports from China have brought large volumes of roses and carnations into regional markets. Malaysian growers say some arrive at prices below their own production costs. China's scale, lower costs in certain growing regions and coordinated logistics put downward pressure on prices across Southeast Asia.

Indonesia and Thailand also compete in similar crops. Malaysian producers are responding in two ways: concentrating on flowers associated with local quality, especially chrysanthemums and selected orchids, or expanding into potted plants and foliage that last longer and are less complicated to transport.

Costs are rising at the same time. A weaker ringgit makes imported fertilizer, growing media, greenhouse plastics and planting materials more expensive. Electricity, packaging and transport also cost more. Air freight rates surged during the pandemic and remain volatile.

Exporters face these expenses while meeting strict grading and cooling requirements. Growers describe consistent quality and speed to market as the defensible strategy for widely traded cut flowers. Niche varieties, dependable supply and clean handling after harvest can still attract a premium.

Marketing is changing alongside production. Sales directly to consumers, florist subscriptions and digital storefronts let farms explain their products and collect information about demand. Branding could identify Cameron Highlands chrysanthemums by verified vase life or Muar nursery plants by their performance in landscaping.

Buyers in Japan and Singapore often pay for predictability. Choosing suitable varieties, grading carefully and maintaining a reliable cold chain, the sequence of cooled storage and transport, are therefore central to competitiveness.

Domestic buyers and seasonal peaks shape production

Malaysia's floriculture industry serves connected export and domestic markets. Exports concentrate on high grade cut flowers and selected potted products for Japan, Singapore, Thailand and Australia. At home, hospitality businesses, weddings, corporate events and urban greening generate demand.

Kuala Lumpur anchors the country's flower trade by volume, with hotels, shopping malls and event venues placing orders continuously. Penang has become a fast growing market supported by tourism and city beautification.

Online sales continue to expand. Consumers order bouquets, potted succulents, palms and ferns for homes and offices. Farms and wholesalers selling digitally need dependable delivery windows and clear product photographs to reduce returns.

Lunar New Year, Hari Raya, Deepavali and Christmas bring sharp increases in demand for pots, foliage and cut flowers. Wedding seasons add bursts of orders for roses, lilies and arrangements in particular color combinations. Those peaks influence planting and harvesting plans.

Chrysanthemums remain a staple in East Asia because they are versatile, widely recognized and easier to produce consistently in controlled environments. Their stable demand helps growers plan crop rotations and maintain regular export schedules, providing a steadier foundation alongside seasonal orders.

Better planting material and smarter greenhouses

Technology is moving from research centers into greenhouses and packing sheds. Biotechnology and tissue culture provide clean planting material with uniform traits. Tissue culture is a way to grow planting material from plant tissue, helping producers obtain consistent stock.

The Malaysian Agricultural Research and Development Institute (MARDI) has released orchid lines that tolerate heat and landscape plants suited to local conditions. These developments give growers options tailored to the environments in which their products will grow.

Marker assisted breeding and screening large numbers of plants help identify varieties with longer vase life, brighter colors and greater resistance to disease. Marker assisted breeding uses genetic markers to help select plants with desired traits. Genome editing, which changes genetic material, is another frontier for ornamental crops, although bringing genetically modified flowers to market can face regulatory obstacles.

For many farms, the immediate gains come from better planting material and more consistent growing practices. Sensors can track temperature, humidity and soil moisture. Automated irrigation and fertigation deliver water and nutrients precisely, while LED lighting supports uniform flowering and can reduce energy use.

Soilless growing systems, including hydroponics, reduce disease pressure and can improve stem strength. Hydroponics supplies plants with nutrients without using soil. Vertical and compact systems can suit nurseries near cities that concentrate on potted plants and seedlings.

These upgrades help farms manage erratic weather and produce more consistent plants. That consistency matters to repeat buyers and export inspectors, who expect shipments to meet the same standards each time.

Freshness and safer growing practices become selling points

Care after harvest matters as much as production. Rapid cooling, clean water management, sachets that absorb ethylene and packaging with a modified atmosphere can extend vase life and reduce waste. Ethylene is associated with flower aging; managing it helps preserve freshness during handling and transport.

Modified atmosphere packaging changes the conditions around the flowers inside a package. Together with solutions that slow aging, these methods can make transport to distant buyers more reliable and less costly.

Research on floriculture shows that heavy pesticide use can harm workers and the environment. Many importing markets have no explicit pesticide residue limits for ornamental flowers. Buyers are increasingly asking for records of Good Agricultural Practices and integrated pest management.

Good Agricultural Practices concern how farms manage production responsibly. Integrated pest management combines approaches to controlling pests, including biological controls and carefully targeted treatments. Farms using precise dosing and safer chemicals can demonstrate dependable production and compliance with buyer requirements.

Retailers face their own environmental audits, so records of growing practices can help suppliers win contracts. Sustainability is becoming part of the commercial relationship, alongside appearance, freshness and reliable delivery.

Cold transport and cargo space determine export performance

Flowers traveling from Cameron Highlands to a Tokyo florist or a Singapore hotel face a race against time and temperature. They need rapid cooling before shipment, clean grading benches and consistent refrigeration from the packing facility to the truck and airport.

A break in that cold chain shortens vase life and reduces the price flowers can command. Refrigerated trucks, more packing capacity and scheduling software can deliver immediate benefits. Harvesting at night and dispatching early in the morning help keep temperatures low.

Kuala Lumpur International Airport (KLIA) provides strong cargo links, but freight space can still be tight during peak seasons. Growers must coordinate production and transport closely so harvested flowers can reach buyers while fresh.

Kenya's experience offers practical lessons. When air freight collapsed in early 2020, its flower industry worked with carriers to restore cargo capacity and experimented with direct sea freight for hardier flowers. Packing that added value at origin, digital certification and close communication with buyers helped the sector reset.

Malaysian exporters could pursue longer cargo agreements with airlines and reserve space in the cargo holds of passenger flights to Japan and Australia. Selected trials of sea freight to regional ports could suit robust varieties. These approaches offer the prospect of a lower cost per stem and a transport network better able to withstand disruption.

Policy choices center on workers, certification and investment

Authorities are negotiating market access, strengthening certification systems and promoting Malaysian flowers abroad. The country's agricultural strategy recognizes horticulture, including cut flowers and landscape plants, as an area that can support growth and diversify rural income.

Industry leaders have called for better tracking of varieties, prices and performance so buyers can compare Malaysian products with those from China and Vietnam. A shared database covering plant traits and results after harvest would help identify local strengths and guide breeding priorities.

Foreign labor policy requires careful timing. A rapid reduction in foreign worker numbers could deepen the existing shortage. Faster approvals for necessary roles, grants for mechanization and training to attract local workers into skilled greenhouse jobs are among the measures proposed to bridge the gap.

Investment in cold transport, interest subsidies for greenhouse upgrades and tax incentives for automation would help farms modernize. Aligning quality certification with Japanese and Australian retailer expectations could open access to contracts with higher values, helping growers justify those investments.

These measures remain proposed responses alongside ongoing market access, certification and promotion work. No dates were given for implementing the proposed labor approvals, grants, subsidies or tax incentives.

Farmers spread risk and keep more value from sales

Some Cameron Highlands growers have planted chilli on part of their land to spread risk and maintain cash flow when flower prices are weak. Others are expanding into potted foliage and hardy ornamental plants that travel well and suit online retail.

Landscape contractors increasingly want plant mixes ready for planting and accent plants that grow slowly, look attractive for months and require little care. Nurseries serving that demand need consistent plant sizes, clean roots and clear labeling.

Bouquet assembly, branded packaging and subscriptions sold directly by farms connect producers with consumers while improving margins. Social media and simple online stores extend their reach without the expense of a large retail operation.

Partnerships with florists allow farms to display new varieties and receive quick feedback. For exports, grading and putting stems into protective sleeves at origin can reduce breakage and speed customs clearance. Each step adds work at the farm or packing facility, but can help make earnings more predictable.

Global trends reward specialization and dependable supply

The global floriculture market continues to grow at a pace in the middle single digits. Smart greenhouses, compact growing systems and digital sales are changing how flowers move from farms to vases.

Greenhouse horticulture is expanding quickly worldwide because it improves yields, reduces pesticide use and stabilizes quality. Buyers in mature markets increasingly ask for traceability, meaning records that allow a product's origin and handling to be followed, and often prefer sustainable packaging.

Producers able to certify their practices and show lower resource use gain an advantage with retailers. Those requirements connect environmental performance with the commercial need to provide a dependable product.

Kenya and Ethiopia expanded their positions in flower exports by securing air cargo links, diversifying routes and building trusted supply chains. Europe remains the largest consumer region, with high expectations for quality and compliance.

Malaysia's opportunity lies in quality chrysanthemums and other niches where reliability earns a premium. Technology can improve consistency and shorten production cycles, while digital tools that forecast demand and track inventory can reduce waste.

Direct sales to consumers at home and across the border in Singapore can improve margins without large marketing budgets. For growers in Muar and Cameron Highlands, clean growing practices, long vase life and dependable delivery provide a practical basis for competing as cheaper imports and labor shortages put pressure on costs.

The Bottom Line

• Malaysia's floriculture exports reached about US$98.4 million in 2024, below the industry's US$121 million revenue peak in 2019.
• Muar supplies landscaping plants, while Cameron Highlands produces more than 80 percent of Malaysia's cut flower exports.
• Growers report a foreign worker shortage of 30 to 40 percent, affecting crop care, harvest timing and delivery.
• Cheaper Chinese roses and carnations compete with Malaysian flowers as production and transport costs rise.
• Hospitality, events, urban greening and online shopping support domestic demand, with holidays creating seasonal peaks.
• Better planting material, machinery, greenhouse controls and careful handling after harvest can improve consistency and reduce waste.
• Reliable refrigeration and cargo access are essential, with sea freight a possible option for selected hardy varieties.
• Farmers are diversifying crops and adding bouquet assembly, packaging and direct sales to protect earnings.
• Market access, certification, better industry data and proposed investment support are central policy priorities.
• Safer growing practices, traceability and dependable delivery increasingly matter to buyers.