Nestlé Malaysia Achieves 100% Locally Sourced Chillies for MAGGI Chilli Sauce

Milestone marked by Economy Minister’s visit to IPR‑INTAN Putrajaya chilli farming project

Putrajaya, April 17, 2026 – YB Tuan Haji Akmal Nasrullah Bin Haji Mohd Nasir, Minister of Economy, together with Nestlé Malaysia had an official visit to the IPR‑INTAN Putrajaya Project, showcasing how well-structured farmer partnerships can strengthen national food security while creating sustainable livelihoods for B40 communities.

During the visit, the Minister was briefed on the impact of the high‑yield chilli farming initiative, including improvements in farmer incomes, productivity and integration into Nestlé Malaysia’s local supply chain. The project is supported by the Nestlé Chilli Club, the Company’s long‑standing contract farming programme established in 1995, and reflects Nestlé Malaysia’s continued commitment to local sourcing and food system resilience.

The contract farming initiative supports local farmers across 12 sites in Kelantan, Selangor, Putrajaya and Johor, covering 146 acres of land. It provides income security, skills development and stable demand through a fully traceable chilli supply for Nestlé’s locally produced MAGGI Chilli Sauce. Following years of consistent growth, the Nestlé Chilli Club now meets 100% of MAGGI Chilli Sauce’s fresh chilli requirements, reinforcing Nestlé Malaysia’s commitment to sustainable, locally sourced food production.

Mr. Juan Aranols, Chief Executive Officer of Nestlé Malaysia, said, “Supporting the livelihoods of local farmers is integral to both our value chain and the nation’s food security agenda. Long‑term partnerships with farming communities and government stakeholders, including our collaboration with IPR‑INTAN under the Ministry, reflect our shared responsibility to build a more resilient and self‑sufficient food system while empowering B40 households.”

Farmers participating in the IPR‑INTAN Putrajaya project earn an average monthly income of approximately RM3,000. Now in its fifth cycle (2026), this development has produced more than 200 tonnes of chillies valued at approximately RM1.5 million, underscoring the role of structured smallholder farming in supporting B40 communities and national food security objectives.

Nestlé Malaysia supports participating farmers with training in modern, eco‑friendly regenerative agricultural practices to enhance yields and farm productivity. By integrating locally grown chillies directly into its food manufacturing value chain, the Company provides consistent demand and long‑term market access for farmers.

Established in Kelantan in 1995 in partnership with Pertubuhan Peladang Kawasan Bukit Awang and local farmers, the Nestlé Chilli Club later expanded to Terengganu, and Selangor in 2021 with support from Pertubuhan Peladang Kawasan Kuala Langat. In 2025, a greenhouse project was developed with Chin Siam Chiap (CSS) Johor. These collaborations have enabled more farmers to adopt sustainable farming practices while ensuring a stable year-round local chilli supply.

Nestlé Malaysia’s commitment to food security and economic resilience is anchored in its Farmer Connect programmes, which support hundreds of farmers across its chilli, rice, cocoa and coffee initiatives. The programmes strengthen farm economics and productivity through regenerative agriculture and long-term capacity building. This includes targeted agronomy support and knowledge transfer in sustainable rice cultivation in Kedah and Perlis, responsible cocoa sourcing in collaboration with the Malaysian Cocoa Board in Sabah and Sarawak, and coffee farming programmes in Kedah and Gua Musang, Kelantan.

Guided by its Creating Shared Value approach, Nestlé Malaysia will continue to build a more sustainable food future by strengthening local sourcing and resilient supply chains.