By The Straits Times | Created at 2026-06-19 06:37:14 | Updated at 2026-06-19 10:56:34
4 hours ago
KUALA LUMPUR/BANGKOK - Talks to resolve a seafood trade dispute between Malaysia and Thailand are “progressing positively”, a Malaysian minister has said, even as sellers on both sides worry about the impact of a prolonged standoff.
On June 18, Malaysia’s Deputy Agriculture and Food Security Minister Chan Foong Hin expressed confidence that the row can be resolved in a constructive manner.
He said the Malaysian authorities have received Thailand’s food safety information – a condition Malaysia said was needed before its import ban on five Thai shrimp species could be lifted.
“There have been certain developments following the receipt of the responses, and everything is currently under the process of communication and assessment,” Chan told The Straits Times.
In a Facebook post on June 18, Chan said discussions were “progressing positively” following clarifications from the Thai authorities.
The dispute began in May after the Thai authorities intensified inspections and testing of Malaysian seabass imports to Thailand, citing concerns over chemical and antibiotic residues. Malaysian exporters said the stricter checks delayed customs clearance and increased the risk of spoilage for fresh fish shipments.
Malaysia then responded by suspending imports of five shrimp species and restricting seabass imports from Thailand from June 1, citing biosecurity and food safety concerns.
Thai officials said on June 10 that the matter could be raised at ASEAN or the World Trade Organization if bilateral talks fail to resolve the dispute.
Industry players in Malaysia told ST that the dispute has affected seafood businesses and could result in higher shrimp prices if it remains unresolved.
Malaysia Fish Industries General Association president Sing Kian Hock said Malaysia’s aquaculture industry could currently meet around 30 to 35 per cent of daily shrimp demand, with the rest imported from other countries.
He warned that if the situation continued, shrimp prices could rise by as much as 50 per cent.
“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,” he said.
He told ST that the main challenge for businesses had been higher procurement costs and the need to reorganise supply chains. Importers, wholesalers and processing companies that rely heavily on Thai supplies are the most affected.
“Importers have begun adjusting their sourcing strategies by procuring products from Indonesia, Vietnam, India and local shrimp farms to minimise the impact,” he said.
Some companies have been forced to identify new suppliers, resulting in increased logistics expenses and purchasing costs, although overall seafood supplies remained stable for now.
Sing said there are concerns that the dispute could widen if trade restrictions were extended to additional seafood products.
“We hope Thailand and Malaysia can resolve this issue as soon as possible,” he said.
“The dispute should be addressed using science-based testing standards and transparent procedures to avoid unnecessary disruptions to normal trade.”
Meanwhile, Malaysia’s Department of Fisheries (DOF) has sought to reassure consumers about domestic supplies.
Responding to ST’s queries, DOF director-general Adnan Hussain said local shrimp production is sufficient to meet domestic demand and that changes in import patterns would not threaten national food security.
“National shrimp supplies remain stable and sufficient to meet local market demand,” Adnan said.
He added that the current situation could create opportunities for local producers to expand production and strengthen domestic supply chains.
Across the border, the impact of the dispute is being felt by shrimp farmers, including Ruangrong Shrimp Farm in Thailand’s southern Phang Nga province.
Pinkaew Seriruangrong, the farm’s owner, told ST that she can sell up to 1,000kg of shrimps every three months for about 220 baht (S$8.70) per kg.
But due to Malaysia’s suspension of Thai shrimps, she has to market her stock to local consumers by almost halving her price to around 120 baht per kg.
“If this situation drags on, it will definitely create problems for the industry,” she said. “However, we are not reducing production. Instead, farmers are adapting by changing the size of shrimp they rear to match market demand.”
But Pinkaew said that is not helping much either, since Thailand’s domestic shrimp market is now oversupplied, making it much harder to sell shrimp.
“Some orders have already been cancelled and shrimp prices have dropped considerably,” she said.
Thailand exports an average of between 300 and 400 tonnes of shrimps valued at about 44 million baht to Malaysia every month.
Trirerk Muensanthad, president of the National Fisheries Association of Thailand, said the industry is still holding up for now.
“However, if the restrictions continue for several months, there are concerns that seasonal products, particularly seabass, could face further price declines. Looking ahead, prolonged disruption could create challenges for both aquaculture and fisheries businesses.”
Though Thailand is looking for new markets to export its shrimps, Trirerk noted the challenges to the search for new markets. “Identifying and developing new export opportunities largely depends on government support and trade negotiations,” Trirerk said.
Referring to talks between Thailand and Malaysia on the seafood trade spat, he said: “We hope both sides can reach a resolution as soon as possible.”
