Priorities in Malaysia  Yoke Fong Chong   FMM MAFMAG
Technical Barriers to Trade   Priorities in Malaysia             Presented by:           Chong Yoke Fong FEDERATION OF MAL...
About Malaysia     •     Malaysia has an area of 329,758 square           kilometers (127,320 square miles).     •     Pop...
Malaysia: Trade Stats•   Total Trade in January 2012 – valued at RM105.4 billion, a growth of    1.7% from 2011.•   Trade ...
FMM Brief Background                          FMM• Established on 2nd July, 1968• Companies from many Industry Sectors• Me...
FMM MAFMAG Objectives• Cohesive group to promote co-operation among  food industries;• Promote development of food industr...
Common Technical Trade Barriers
Common Technical Trade Barriers • Customs & Administrative Entry Procedures    – Pre Market Product Registration    – Impo...
Customs & Administrative    Entry Procedures
Pre-Market Product Registration                        • Multiple                          registration                   ...
Pre-Market Product Registration               •   Manufacturing Process Chart               •   Certificate of Composition...
Pre-Market Product RegistrationLong Registration Lead Time                 Some Restrictions…                             ...
Importation of FlavoursMalaysia MOH - Registration & Yearly Renewal  •   Warranty Letter  •   Free Sales Certification  • ...
Requirement of COA for Custom Clearance                  Every shipment              to be accompanied with               ...
Requirement of COA for Custom Clearance                   Impact:                   - Cost, duplication of certification, ...
Standards
Different Tolerance Limit for Nutrients      Country        Tolerance Limit for                   fortified nutrient (of  ...
Different Tolerance Limit for Nutrients Country       Tolerance Limit for                                                 ...
Different Contaminant Limits                  Vietnam        Thailand           Malaysia           Indonesia         Tin  ...
Ever-changing & Stringent Microbiology &         Chemical Contaminant Limits                                              ...
Labelling
Labelling– local languages, different NIP format & NRV                Impact:                - No shared packaging        ...
Opportunities?
Harmonisation1. Harmonised system for Product   Registration, Import & Export Certification2. Uniform standard of Food Saf...
Industry’s Role1. Active interaction between industry associations   across Asia2. Share experiences of trade and regulato...
Thank You
Priorities in Malaysia 2012
Priorities in Malaysia 2012
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Priorities in Malaysia 2012

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Food Industry Summit organised by Food Industry Asia (www.foodindustry.asia) : 06 September 2012

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Priorities in Malaysia 2012

  1. 1. Priorities in Malaysia Yoke Fong Chong FMM MAFMAG
  2. 2. Technical Barriers to Trade Priorities in Malaysia Presented by: Chong Yoke Fong FEDERATION OF MALAYSIAN MANUFACTURERS MALAYSIAN FOOD MANUFACTURING GROUP (FMM MAFMAG)
  3. 3. About Malaysia • Malaysia has an area of 329,758 square kilometers (127,320 square miles). • Population - 29.2million • Multiracial country - 58% Malays, 26% Chinese, 7% Indians, 9% other groups • Inflation% (CPI) : 2.7% • Per capita income : RM29,094 (USD9,508) • GDP growth : 5.1% (2011) Natural resources: crude oil, natural gas, tin, timber, palm oil, rubber
  4. 4. Malaysia: Trade Stats• Total Trade in January 2012 – valued at RM105.4 billion, a growth of 1.7% from 2011.• Trade surplus registered at RM8.8 billion• Malaysia’s major trade partners:
  5. 5. FMM Brief Background FMM• Established on 2nd July, 1968• Companies from many Industry Sectors• Membership categories: Ordinary, Affiliate, Association FMM MAFMAG• Established on 24th September, 1984• Membership: Manufacturers and affiliates in the Food and Beverage Industry• 68 companies to date
  6. 6. FMM MAFMAG Objectives• Cohesive group to promote co-operation among food industries;• Promote development of food industries by formulating recommendations on investment incentives, market protection and other measures;• Channel of communication between food industries and government on relevant matters;• Active participation in ASEAN and international activities e.g. ASEAN-ICC, Codex Committees.
  7. 7. Common Technical Trade Barriers
  8. 8. Common Technical Trade Barriers • Customs & Administrative Entry Procedures – Pre Market Product Registration – Importation of Flavours – Requirement of COA for Custom Clearance • Standards – Different Tolerance Limit for Nutrients – Different Contaminant Limits – Ever-changing & Stringent Microbiology & Contaminant Limits • Labelling – Local language requirement – Format of Nutrition Information Panel – Different nutrition reference values
  9. 9. Customs & Administrative Entry Procedures
  10. 10. Pre-Market Product Registration • Multiple registration process • Long registration lead time • Restrictions
  11. 11. Pre-Market Product Registration • Manufacturing Process Chart • Certificate of Composition Multiple • Certificate of OriginRegistration • COA for Raw Materials • Certificate of Compliance for Packaging Process • GMP / ISO Certificate • HACCP Certificate • Health Certificate • Free Sales Certificate • Sanitary & Phyto-Sanitary Certificate • Certificate of Analysis • Certificate of Keeping Quality • FDA / ML Number • Actual Label Sample
  12. 12. Pre-Market Product RegistrationLong Registration Lead Time Some Restrictions… Product must be Any changes, no in market within matter how 3 months of small, needs P5 BPOM approval. re-registration. Change of label needs FDA Impact: approval …. Lead time… - Overly burdensome product registration requirements - Risk to intellectual property
  13. 13. Importation of FlavoursMalaysia MOH - Registration & Yearly Renewal • Warranty Letter • Free Sales Certification • Health Certificate • Ingredient breakdown of the flavour • Absence/ presence of animal ingredient declaration • Allergen declaration Impact: - Additional administrative work
  14. 14. Requirement of COA for Custom Clearance Every shipment to be accompanied with COA for Every Batch • Samples to 4 labs at Analysis Lab Method Cost 4 countries - (RM) accreditation issue. Moisture NQAC-NN LI-20.014-2 20 Caffeine Shah Alam LI20.020-1/LC-UV 96 • Analytical cost Ash Shah Alam LI00.565-4/Gravimetry 42 RM 1845 per batch. Salmonella Shah Alam LI00.713-4 LI00.746 80 Staph. aureus Shah Alam LI00.750-4 32 •10 days Release Total Alfatoxin Weiding LI12.503 473 Time. LI-00.848-1 / ICP-MS Tin Singapore 325 (single elements) Total Arsenic Singapore LI-00.848-1 / ICP-MS (5 •Warehouse cost Lead Singapore 425 Mercury Singapore elements) RM 2K/MT product. Copper Shah Alam LI-SGRL-99.110 / ICP-MS 75 Zinc Shah Alam LI-SGRL-99.110 / ICP-MS 75 •Huge resources. Courier Cost FEDEX 202 Total 1845
  15. 15. Requirement of COA for Custom Clearance Impact: - Cost, duplication of certification, resources Certificate forNon-Genetically Starlink Certificate Modified (Chemistry Organism Department, Malaysia)
  16. 16. Standards
  17. 17. Different Tolerance Limit for Nutrients Country Tolerance Limit for fortified nutrient (of declared value) Malaysia Min 80% Impact: Declared value of a fortified nutrient is different for a Thailand Min 100% same product recipe Indonesia Min 100% Philippines Min 80%
  18. 18. Different Tolerance Limit for Nutrients Country Tolerance Limit for Sodium (mg/100g) Sodium of the declared value Declared Value Selling Country Min Max (mg/100g) Malaysia Max 120% Malaysia 120 - 144 Thailand Min 100% Thailand 100 100 - Indonesia Max 120% Indonesia 120 - 144 Philippines 120 96 Philippines Min 80% Operating norms tighten to 100 – 144 mg/100g in order to meet all market requirementsSodium -Desired or Undesired Nutrient? Illustration of a product with sodium declaration
  19. 19. Different Contaminant Limits Vietnam Thailand Malaysia Indonesia Tin 40 250 50 152 Arsenic 0.1 2 0.1 0.38 Impact: - Restriction to cross border trade Lead 0.02 1 0.2 1.14 Mercury 0.05 0.5 0.05 0.05 Copper 5 20 - 5 Zinc - 100 - -Contaminant or Nutrient? Heavy Metal Limits (in ppm) for Infant Cereals
  20. 20. Ever-changing & Stringent Microbiology & Chemical Contaminant Limits Limits Updated 25 MarCONTAMINANTS PARAMETER Unit Remarks 2011 Old 2010 NEW 2 Old:unit = col/ml. Total Plate Counts (TPC) 1 x 10 10 < 10 colony/ 0.1mlMicrobiologicals New:unit = col/0.1 ml MPN coliform /ml <3 - - S. Aureus /ml 0 - - APM E. Coli Impact: Clostridium Perfringens /ml 0 - - < 3 /g Salmonella sp. Yeast & Mould - Disruption to operation Negative /25g 1x102 colony/gHeavy Metals Arsenic (As) ppm 0.1 0.1* 0.1* Cadmium (Cd) ppm 0.2 0.2 Mercury (Hg) ppm 0.03 0.03 Tin (Sn) ppm 250 (tin) 250 (tin) 250 (tin) 40 40 40 Lead (Pb) ppm 0.2 0.02* 0.02* Copper (Cu) ppm 2.0 - - Zinc (Zn) ppm 5.0 - -Mycotoxin Aflatoxin M1 ppb 0.5 0.5 * based on ready to consumed products
  21. 21. Labelling
  22. 22. Labelling– local languages, different NIP format & NRV Impact: - No shared packaging - Not being able to maximise economies of scaleThailand Malaysia Indonesia Philippines One recipe, 4 different labels
  23. 23. Opportunities?
  24. 24. Harmonisation1. Harmonised system for Product Registration, Import & Export Certification2. Uniform standard of Food Safety & Nutrition limits across Asean aligned to international standards3. A uniform standard on Labelling
  25. 25. Industry’s Role1. Active interaction between industry associations across Asia2. Share experiences of trade and regulatory priorities3. Seek appropriate platform to shape Asia regulatory landscape
  26. 26. Thank You

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