Thai-Malaysia seafood spat: Malaysia positive about talks, even as sellers fret about standoff

Talks between Malaysia and Thailand to resolve a seafood trade dispute are "progressing positively," according to Malaysian Deputy Agriculture and Food Security Minister Chan Foong Hin. Despite the minister's optimism, seafood sellers in both nations are expressing concern over the prolonged standoff and its potential economic consequences.

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There have been certain developments following the receipt of the responses, and everything is currently under the process of communication and assessment.

The dispute escalated in May when Thai authorities began stricter inspections of Malaysian seabass imports, citing concerns over chemical and antibiotic residues. This led to delays in customs clearance and increased spoilage risk for fresh fish shipments. In response, Malaysia suspended imports of five shrimp species and restricted seabass imports from Thailand starting June 1, citing biosecurity and food safety concerns.

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discussions were “progressing positively” following clarifications from the Thai authorities.

Malaysian exporters have faced challenges with higher procurement costs and the need to reorganize supply chains. Importers, wholesalers, and processing companies heavily reliant on Thai supplies are particularly affected. Some businesses are adjusting by sourcing products from Indonesia, Vietnam, India, and local farms, incurring increased logistics and purchasing expenses.

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It is only half a month now, so we do not yet see the full effect. But after two months, we will start to see the impact. The supply will not be enough.

Industry players warn that if the dispute persists, Malaysia's aquaculture industry, which currently meets only 30-35 percent of daily shrimp demand, could face significant shortages. Shrimp prices might rise by as much as 50 percent after two months of continued disruption. There are also concerns that the dispute could widen to include additional seafood products. Thai officials have indicated that the matter could be escalated to ASEAN or the World Trade Organization if bilateral talks fail.

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We hope Thailand and Malaysia can resolve this issue as soon as possible.