The country's lucrative billion-ringgit frozen seafood export business is on the verge of total collapse and the industry players want the government to immediately release the already allotted RM500 million to save them.

They warned that if the government fails to do so in a month's time, the industry will not survive and collapse by next March.

ch ng chin hooi mffpa chairperson "As it is, some companies are already dead and some will not see through next month's Chinese New Year," Malaysian Frozen Foods Processors Association (MFFPA) chairperson Ch'ng Chin Hooi told a press conference today.

He cited the recent closure of the Prai-based Seapack Food Sdn Bhd that retrenched 300 workers as a sign of the impending tragedy. Similarly some 100 workers from another Prai-based company, Hong San Frozen Sdn Bhd, are set to lose their jobs next week.

What irks industry players the most is that the glum is not their fault, but due to the government's prolonged self-imposed ban since April on Malaysian frozen seafood export to the 28 member-state European Union (EU).

Government agency blamed

The dejected 26-corporate member MFFPA alleged that the industry had reached a dead end due to the incompetence of the Malaysian Competent Authority (MCA).

The members blamed their despondency on the protracted delay of MCA to carry out rectification and upgrading works in compliance with the EU guidelines on frozen food export.

Some 90 percent of EU complaints were linked to MCA governed areas, among others, cleanliness in fishery vessels, handling of marine catch at landing ports and incompetent backyard factories.

frozen seafood industry protest hong san workers penang 171208 01 "Even though the EU has set the conditions for us to comply since 2005, MCA has failed to do so until today," Ch'ng told reporters at the northern branch office of the Federation of Malaysian Manufacturers (FMM) in Seberang Jaya, Penang mainland.

Prior to the ban, the frozen seafood industry was the country's second largest food industry with a RM2.5 billion export value, with 70 percent going to EU countries.

But since April, the industry has suffered RM1.5 billion loss in sales and production as stocks of EU-bound frozen food are now stuck in cold rooms, with each major company losing between RM5 million and RM20 million.

The companies have dropped the idea to look for new markets for the frozen EU products due to the high cost involved in making technical changes in packing and requirements.

'We don't understand why'

Unless and if the Finance Ministry injects the much needed RM500 million-rescue package immediately, 43 frozen seafood processing companies, half of them major ones, will close down soon.

To add to the problem, the industry's estimated 15,000 direct workers would be jobless, and another 50,000 indirect workers employed in related sectors, such as fisheries, transport and supply, stand to lose either their main source of income or jobs.

Ch'ng called on Finance Minister Najib Abdul Razak to release the money urgently through the government-appointed Agro Bank to provide the much sought after soft loans with low interests for the survival of the frozen food industrialists.

"We don't understand why the money has not been released to us even though all the documentation process to obtain the loans had been completed," he said.

The MCA, headed by the Health Ministry in cooperation with the Agriculture and Agro-based Industry Ministry, is to improve the effectiveness of inspection and auditing services in Malaysia for fishery exports and the quality and safety of fish supplies to meet the requirements of import markets.

It is to address EU trade related policies and requirements pertaining to the export of fishery products, and resolve the highlighted deficiencies to the EU market.

Following the self-imposed ban, the EU issued a 16-point corrective plan to MCA to carry out rectification and upgrading works before the next inspection, which has been rescheduled twice, from August to October and now next March.

Workers in the lurch

"Even though, unlike the electrical and electronic sectors, the frozen seafood industry is recession-proof, we are in the doldrums due to the government’s incompetence.

"So it's the government's responsibility to save us now," insisted Ch'ng.

frozen seafood industry protest hong san workers penang 171208 03 Prior to the press conference, Hong San Frozen Food workers held a peaceful demonstration outside FMM building to vent their frustration and anger at the government's incompetence.

They called on Najib to either rescue their jobs by injecting the much-needed cash to the industry, or resign gracefully.

Workers such as S Shanmugam, 28, NS Kumaran, 36, D Ambiga, 24, S Janaki, 39 and S Mary, 54, are now worried about their imminent loss of income and family survival.

"I don't how I am going to feed my family and elderly parents?" lamented a depressed Janaki.