July 31, 2009

The Malaysian Frozen Foods Processors Association (MFFPA) has asked the government to audit the 37 remaining seafood firms to resume exports to the EU.

Only six of the 42 seafood processing companies have been allowed to resume business with the EU following the lifting of a ban on Malaysian seafood in May, said MFFPA chairman Ch'ng Chin Hooi.

A few companies are trying hard to penetrate other markets in the Middle East, South Africa, the US and Australia, but many others have temporarily stopped operations because of the delay, Ch'ng said.

It is hoped that the government can help out as it has been more than a year since the Malaysian seafood industry imposed a self-ban to the EU market, according to Ch'ng.

The problem lies with deficiencies not rectified by officials regarding the recommendations made by the EU's inspection team in March 2008, and processors were disappointed that a promised federal aid package consisted of an ordinary loan rather than a soft loan, he said.

The association learnt last October that the Ministry of Finance would grant members a MYR500 million (US$142.1 million) soft loan.

Malaysia's frozen foods industry is valued at about MYR2 billion (US$569.5 million) per year, and is the country's second largest food exporter, Ch'ng said.

France, Britain, Belgium, Italy and Spain are among the top 10 buyers of Malaysian seafood.