Malaysia said it has suspended seafood exports to the European Union (EU) to avoid a ban for allegedly failing to meet European health standards.

Malaysia’s Health Ministry said on Thursday that all companies which export seafood to the EU had been told to stop shipments since Tuesday until they complied with the standards.

“This request is made to avoid (a) European Commission decision to ban imports of fishery products from Malaysia,” the statement said.

“All the concerned processing establishments and vessels are currently being audited to verify their compliance with EU requirements,” it said.

The statement did not say how long the suspension would be in place, but a ministry official said companies were expected to be reviewed after six weeks.

In April, visiting EU health inspectors found that six Malaysian seafood factories had failed to meet EU health standards.

The regulations govern proper freezing and storage facilities on board vessels, including clean water and washbasins.

The annual value of Malaysian seafood exports to the EU is RM1.5 billion (S$630 million). Between 40 and 50 Malaysian companies export seafood to Europe.

The EU’s ambassador to Malaysia, Mr Vincent Piket, welcomed Malaysia’s decision to voluntarily suspend exports. “This measure demonstrates clearly Malaysia’s commitment to food safety.
And it will make it easier to gradually re-certify exporters once the EU requirements are met,” he said in a statement.

The Malaysian Frozen Foods Processors Association’s 26 members are expected to lose millions of dollars as it is estimated that it will take three months for exports to flow normally again.

The group’s chairman, Mr Ch’ng Chin Hooi, said this is because it is during the next few months that customers place orders for the Christmas season.

Malaysia Shrimp Industry Association chairman Syed Omar Syed Jaafar said his group’s members would lose RM69.3 million during the period.

He expected seafood prices in Malaysia to drop over the next few months as exporters dump stocks locally.

Singapore’s Agri-Food and Veterinary Authority of Singapore (AVA) last week said imported fish from Malaysia are safe to eat.

Last year, Singapore imported 42,400 tonnes of fish from Malaysia. Stringent checks are in place to ensure the quality of fish imports, said AVA spokesman Goh Shih Yong.

Consignments undergo random testing to ensure they are safe for consumption.

US and Singapore are main markets

- Total annual revenue generated by seafood caught in Malaysia in 2006, the latest data available, was RM6.7 billion (S$2.8 billion).

- Malaysia exported RM2.3 billion worth of seafood in 2004. The top single-country buyer in value terms was the United States, which accounted for 23.7 per cent of the total exports. Singapore was second with 11.2 per cent.

- The exports included live fish, frozen and chilled fish, dried, salted, frozen or chilled crustaceans and molluscs.

- Fresh and frozen prawns and tinned crustaceans and molluscs as well as live fish formed the bulk of exports, at 56.6 per cent. 

[Source: Malaysia's Fisheries Department website]

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This article was first published in The Straits Times on June 21, 2008.