February 12, 2010

Malaysian seafood exporters seek special funds

Seafood exporters in Malaysia are expecting the Ministry of International Trade and Industry (MITI) to help them deal with the problem of securing money from a special government fund.

The MYR500 million (US$146.02 million) fund was set up to help seafood exporters hit by a ban on exports to the EU.

However, the Malaysian Frozen Foods Processors Association (MFFPA) complained that shrimp farmers are getting the money but other exporters' applications have been rejected. The MFFPA comprises 26 member companies nationwide.

Agro Bank was the designated financial institution to disburse the funds to affected seafood exporters.

Before the ban, local seafood exporters were the second largest food export industry for Malaysia, hitting annual revenue of MYR2.5 billion (US$730.3 million).

"Although the Malaysian Health Department has announced that Malaysian exporters have resumed exports to the EU, this only involves 10% of local seafood exporters," MFFPA president Ch'ng Chin Hooi said.

He added that the intention of the special loan was to aid exporters through unexpected situations and be able to quickly seek alternative markets.