priorities in malaysia 2012
DESCRIPTION
Food Industry Summit organised by Food Industry Asia (www.foodindustry.asia) : 06 September 2012TRANSCRIPT
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Priorities in Malaysia
Yoke Fong Chong
FMM MAFMAG
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Technical Barriers to Trade Priorities in Malaysia
Presented by:
Chong Yoke Fong
FEDERATION OF MALAYSIAN MANUFACTURERS
MALAYSIAN FOOD MANUFACTURING GROUP
(FMM MAFMAG)
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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
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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:
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FMM Brief Background
• Established on 2nd July, 1968
• Companies from many Industry Sectors
• Membership categories: Ordinary, Affiliate, Association
FMM
• Established on 24th September, 1984
• Membership:
Manufacturers and affiliates in the Food and Beverage
Industry
• 68 companies to date
FMM MAFMAG
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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.
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Common Technical Trade Barriers
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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
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Customs & Administrative Entry Procedures
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Pre-Market Product Registration • Multiple
registration process
• Long registration lead time
• Restrictions
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• Manufacturing Process Chart
• Certificate of Composition
• Certificate of Origin
• COA for Raw Materials
• Certificate of Compliance for Packaging
• 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
Pre-Market Product Registration
Multiple
Registration
Process
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Long Registration Lead Time
Some Restrictions…
Change of label
needs FDA
approval ….
Lead time…
Any changes, no
matter how
small, needs P5
re-registration.
Product must be
in market within
3 months of
BPOM approval.
Pre-Market Product Registration
Impact: - Overly burdensome product registration requirements - Risk to intellectual property
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Importation of Flavours
• Warranty Letter
• Free Sales Certification
• Health Certificate
• Ingredient breakdown of the flavour
• Absence/ presence of animal ingredient declaration
• Allergen declaration
Malaysia MOH - Registration & Yearly Renewal
Impact: - Additional administrative work
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Requirement of COA for Custom Clearance
Every shipment to be accompanied with
COA for Every Batch • Samples to 4 labs at 4 countries - accreditation issue. • Analytical cost RM 1845 per batch. •10 days Release Time. •Warehouse cost RM 2K/MT product. •Huge resources.
Analysis Lab Method Cost (RM)
Moisture NQAC-NN LI-20.014-2 20
Caffeine Shah Alam LI20.020-1/LC-UV 96
Ash Shah Alam LI00.565-4/Gravimetry 42
Salmonella Shah Alam LI00.713-4 LI00.746 80
Staph. aureus Shah Alam LI00.750-4 32
Total Alfatoxin Weiding LI12.503 473
Tin Singapore LI-00.848-1 / ICP-MS
(single elements) 325
Total Arsenic Singapore LI-00.848-1 / ICP-MS (5
elements) 425 Lead Singapore
Mercury Singapore
Copper Shah Alam LI-SGRL-99.110 / ICP-MS 75
Zinc Shah Alam LI-SGRL-99.110 / ICP-MS 75
Courier Cost FEDEX
202
Total 1845
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Requirement of COA for Custom Clearance
Starlink Certificate
(Chemistry
Department,
Malaysia)
Certificate for
Non-Genetically
Modified
Organism
Impact: - Cost, duplication of certification, resources
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Standards
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Different Tolerance Limit for Nutrients
Country Tolerance Limit for fortified nutrient (of
declared value)
Malaysia Min 80%
Thailand Min 100%
Indonesia Min 100%
Philippines Min 80%
Impact: Declared value of a fortified nutrient is different for a same product recipe
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Different Tolerance Limit for Nutrients
Country Tolerance Limit for Sodium of the declared value
Malaysia Max 120%
Thailand Min 100%
Indonesia Max 120%
Philippines Min 80%
Sodium -
Desired or Undesired Nutrient?
Sodium (mg/100g)
Selling Country Declared Value
(mg/100g) Min Max
Malaysia 120 - 144
Thailand 100 100 -
Indonesia 120 - 144
Philippines 120 96
Operating norms tighten to 100 – 144 mg/100g in order to meet all market requirements
Illustration of a product with sodium declaration
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Different Contaminant Limits
Vietnam Thailand Malaysia Indonesia
Tin 40 250 50 152
Arsenic 0.1 2 0.1 0.38
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
Impact: - Restriction to cross border trade
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Updated 25 Mar
2011
Old 2010 NEW
MicrobiologicalsTotal Plate Counts (TPC) 1 x 10 2 10 < 10 colony/ 0.1ml
Old:unit = col/ml.
New:unit = col/0.1 ml
MPN coliform /ml < 3 - -
S. Aureus /ml 0 - -
Clostridium Perfringens /ml 0 - -
APM E. Coli < 3 /g
Salmonella sp. Negative /25g
Yeast & Mould 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
CONTAMINANTS PARAMETERLimits
Unit Remarks
Ever-changing & Stringent Microbiology &
Chemical Contaminant Limits
Impact: - Disruption to operation
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Labelling
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Labelling
– local languages, different NIP format & NRV
One recipe, 4 different labels
Thailand Malaysia Indonesia Philippines
Impact: - No shared packaging - Not being able to maximise economies of scale
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Opportunities?
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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
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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
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Thank You
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