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

2. Priorities in Malaysia
Yoke Fong Chong
FMM MAFMAG

3. Technical Barriers to Trade
Priorities in Malaysia
Presented by:
Chong Yoke Fong
FEDERATION OF MALAYSIAN MANUFACTURERS
MALAYSIAN FOOD MANUFACTURING GROUP
(FMM MAFMAG)

4. 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

5. 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:

6. 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

7. 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.

8. Common Technical Trade Barriers

9. 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

10. Customs & Administrative
Entry Procedures

11. Pre-Market Product Registration
• Multiple
registration
process
• Long
registration
lead time
• Restrictions

12. Pre-Market Product Registration
• Manufacturing Process Chart
• Certificate of Composition
Multiple • Certificate of Origin
Registration • 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

13. Pre-Market Product Registration
Long 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

14. Importation of Flavours
Malaysia 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

15. 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

16. Requirement of COA for Custom Clearance
Impact:
- Cost, duplication of certification,
resources
Certificate for
Non-Genetically Starlink Certificate
Modified (Chemistry
Organism Department,
Malaysia)

17. Standards

18. 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%

19. 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 requirements
Sodium -
Desired or Undesired Nutrient? Illustration of a product with sodium declaration

20. 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

21. Ever-changing & Stringent Microbiology &
Chemical Contaminant Limits
Limits Updated 25 Mar
CONTAMINANTS PARAMETER Unit Remarks
2011
Old 2010 NEW
2 Old:unit = col/ml.
Total Plate Counts (TPC) 1 x 10 10 < 10 colony/ 0.1ml
Microbiologicals 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/g
Heavy 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

22. Labelling

23. Labelling
– local languages, different NIP format & NRV
Impact:
- No shared packaging
- Not being able to maximise
economies of scale
Thailand Malaysia Indonesia Philippines
One recipe, 4 different labels

24. Opportunities?

25. Harmonisation
1. Harmonised system for Product
Registration, Import & Export Certification
2. Uniform standard of Food Safety &
Nutrition limits across Asean aligned to
international standards
3. A uniform standard on Labelling

26. Industry’s Role
1. Active interaction between industry associations
across Asia
2. Share experiences of trade and regulatory
priorities
3. Seek appropriate platform to shape Asia
regulatory landscape

27. Thank You