BERNAS and Malaysia's Rice Import Monopoly

Every kilogram of imported rice that enters Malaysia passes through a single gate — and that gate is held by a private company. That company is BERNAS.

Padiberas Nasional Berhad, or BERNAS, is the country’s sole rice importer. It is not a government agency, but rather a private company that holds an exclusive right through a concession agreement. That position gives it “gatekeeper” power over one of Malaysians’ most basic foodstuffs — and that is why it is perpetually the subject of debate.

Where did BERNAS come from?

BERNAS is the successor to the National Paddy and Rice Board (Lembaga Padi dan Beras Negara, LPN), which was established on 20 October 1971 as the country’s paddy and rice management agency. In 1994 LPN’s commercial and social functions were incorporated as Syarikat Padiberas Nasional, before the company was privatised on 12 January 1996.

It was subsequently listed on Bursa Malaysia on 25 August 1997. On 18 April 2014, BERNAS was delisted when it was taken private. Today it is wholly controlled by Perspective Lane (M) Sdn Bhd, a company owned by Tan Sri Syed Mokhtar Al-Bukhary, while the government holds only a single golden share.

Profile	Details
Full name	Padiberas Nasional Berhad (BERNAS)
Predecessor	National Paddy and Rice Board (LPN), established 20 Oct 1971
Privatised	12 January 1996
Listed on Bursa	25 August 1997
Delisted	18 April 2014
Controlling owner	Perspective Lane (M) Sdn Bhd (Tan Sri Syed Mokhtar Al-Bukhary)
Government share	A single golden share
Current concession	2021–2031 (ten years)

What is the legal basis of this monopoly?

Rice imports are regulated under the Control of Paddy and Rice Act 1994 (Act 522), which came into force on 24 June 1994 (the Act was published on 7 July 1994). The Act covers rice, paddy, glutinous rice flour and vermicelli, and establishes a licensing framework for the import and handling of rice. The Director General under the Act is responsible for ensuring adequate supply, ensuring fair paddy prices for farmers, and stable rice prices for consumers.

BERNAS’s exclusive import right, meanwhile, comes from a separate concession agreement with the government — not from the Act itself. It is this concession that turns an ordinary private company into the sole importer.

What does BERNAS give in return?

The monopoly comes with conditions. In return for the exclusive import right, BERNAS carries a set of social obligations — ten in all under the latest concession extension, doubled from five previously. Among the key ones:

• National rice buffer stock — maintaining a mandatory reserve (now 200,000 tonnes, raised from 150,000) to cope with supply emergencies.
• Buyer of last resort — buying farmers’ paddy at a guaranteed minimum price when there is no other buyer, so that farmers are not exposed to price collapses.
• Channelling subsidies — distributing paddy price subsidies to farmers on the government’s behalf.
• Support for Bumiputera millers — programmes such as Rakan Kilang to assist Bumiputera rice millers.

This guaranteed minimum price policy is not a new concept; it has long been a policy tool to stimulate paddy production. More recently, the government raised the paddy purchase floor price in Peninsular Malaysia to RM1,500 per metric tonne, effective 16 February 2025, up from RM1,300 previously. This adjustment applies only in Peninsular Malaysia; the floor prices in Sabah and Sarawak are handled separately because of differences in production costs, productivity and market structure.

How big is this business?

Despite its “social” role, BERNAS is a profitable business. For the 2021 financial year, the company reportedly posted revenue of around RM4.67 billion with an after-tax profit of RM182.26 million, with rice sales contributing the bulk of revenue (about RM3.42 billion, or 73%), followed by sugar. For the 2020 financial year, the company paid dividends of RM670.02 million — a figure critics often use to question whether the monopoly’s profits should flow to a single private owner. (The FY2021 figures still need to be verified against BERNAS’s official annual report.)

Why does this monopoly remain controversial?

The core issue is simple: a single private company enjoys the exclusive right to import a staple food, while carrying obligations for farmer welfare. Supporters argue the combination is necessary — a sole importer can cross-subsidise, stabilise prices and guarantee the purchase of local paddy. Critics, on the other hand, see it as a monopoly that reaps profits while farmers remain squeezed by costs.

On 13 July 2026, during the debate on the Control of Paddy and Rice (Amendment) Bill 2026 in the Dewan Rakyat, Deputy Minister of Agriculture and Food Security Chan Foong Hin confirmed the government would review BERNAS’s concession as sole importer before it expires in 2031. He did not specify whether the monopoly would be ended.

What comes next

The fate of the rice import monopoly now depends on the concession review ahead of 2031 and the amendments to Act 522 currently under debate. Whether the government liberalises imports, retains the single-gatekeeper model, or hands the role to a public agency remains undecided. For the latest financial figures and concession terms, refer to BERNAS’s official reports and statements from the Ministry of Agriculture and Food Security, as the details here reflect the situation up to mid-2026 and will change with each new policy decision.