Malaysian chicken export ban

This article is part of
a series about
Ismail Sabri Yaakob

Prime Minister of Malaysia

Ismail Sabri Yaakob's signature

The Malaysian chicken export ban was announced on 23 May 2022 by Malaysian prime minister Ismail Sabri Yaakob, restricting the export of 3.6 million chickens a month overseas until the domestic supply and price surge stabilises. Malaysia exported poultry meat worth US$18.9 million in 2020, making it the 49th largest exporter of the product in the world.[1] The imposition of the ban comes amidst surging chicken prices due to a chicken shortage and rising prices for the domestic market.[1]

The ban was partially lifted in June, allowing export of kampung and black chickens to Singapore. It was fully lifted on 11 October.

Background

In 2022, Malaysia encountered a chicken shortage due to increased cost of chicken production, disease infection amongst the chicken population and poor weather conditions. It is exacerbated by the ongoing Russo-Ukrainian War, leading to a global supply chain disruption and the 2021–2022 inflation surge.[2] Under a price control scheme in force between 5 February and 5 June, the Malaysian government imposed a ceiling price of RM8.90 per kg of chicken, in spite of the price control, local grocers are pricing chickens as high as RM17 per kg of chicken as the ceiling price was not economically sustainable.[3]

Lifting of ban

Partial lift

After a cabinet decision by the government of Malaysia on 8 June, the export ban was partially lifted to allow kampung and black chickens to be exported to Singapore.[4] On 15 June, it was reported by The Straits Times that export of kampung chickens resumed on 15 June and black chickens 18 June.[5]

Ban lifted

On 9 October, the Singapore Food Agency announced that Malaysia's Department of Veterinary Services had informed them that the chicken export ban would be lifted on 11 October;[6] the ban was lifted as scheduled.[7]

Impact

When the ban was first announced, there were initial fears that Singapore's national dish Hainanese chicken rice may be affected. However, such fears were quickly alleviated.

The impact of the poultry export ban was especially felt in neighbouring Singapore, which at the time of the ban had sourced 34% of its poultry supply from Malaysia as live chickens, which are then slaughtered and chilled locally.[1] In addressing the issue, the Malaysian Government planned to set up cold storage facilities under the Ministry of Agriculture and Food Industries and agencies and Malaysian officials promised to restore the supply by Hari Raya Haji of 2022.[3]

Hawkers and restaurants in Singapore serving fresh chicken were initially affected, including hawkers selling the country's popular national dish of Hainanese chicken rice, many using fresh chicken as the main ingredient. As a result, frozen chicken had to be temporarily used by some stores instead.[8] On 18 June 2022, the export ban was partially lifted, allowing exports of kampung (village) and black chicken to Singapore. Commercial broiler chicken which makes up the bulk of the chicken export to Singapore remained banned.[9]

Malaysia

Government

To address the shortage of chicken, the Ministry of Agriculture and Food Security of Malaysia planned to create a buffer stock of chicken and optimise existing cold storage facilities under its Industries and agencies. Subsidy claims process for chicken farmers will be simplified also.[1]

The authorities will also recognise overseas slaughterhouses and abolished permits needed to import chickens to increase the country's chicken supply.[1]

Claims of cartels controlling the price and supply of chicken are investigated by the government.[1]

Farmers

The ban was poorly received by chicken farmers and suppliers in Malaysia. They had made most of their profits from selling their chicken to Singapore, due to the strength of the Singapore dollar (SGD) over the Malaysian ringgit (RM/MYR), and was not content with the severe reduction of profits, some not even able to sustain their business as a result of the ban. They were also afraid that the ban will make Singapore look elsewhere for chicken, losing its market forever.[10] On 30 July 2022, Democratic Action Party (DAP) politician Ong Kian Ming stated that the ban has done long-term economic damage to Malaysian farmers.[11]

Singapore

The sudden chicken export ban by Malaysia made the Singaporean authorities realise that they have to further diversify their chicken imports and reduce their percentage of chicken supplies from Malaysia. Shortly after the ban was announced, other neighbouring countries such as Indonesia and Thailand quickly came forward to capitalize on the situation and get their slice of Singapore's chicken import market, attracted by its willing demand backed by the strong Singapore dollar (SGD). By end-June, Singapore significantly increased its chicken supply especially from Indonesia and Thailand along with a few other countries.[12]

Indonesia–Singapore deals

Not long after the ban, Singapore and Indonesia began negotiations over the possibility of Indonesia exporting chickens to Singapore. A deal was agreed when on 30 June 2022, Singapore approved Indonesia as the country's new source of frozen and chilled chicken.[13] On 21 July 2022, a second Indonesian company began supplying chickens to Singapore.[14]

On 21 July 2022, Indonesia announced that they will be willing to set up a large chicken farm in Batam, a city in the Riau Islands, specifically for exports to Singapore. These chickens would be fresh as well, as Batam and Singapore are geographically close. It is believed that such a farm could begin operations in 2023.[15] Similarly, Singapore already had a deal with Indonesia for years to import fresh pork from a farm located on an island close to Batam, known as Bulan Island.[16] On 28 July 2022, another Indonesian firm announced that they will be setting up three farms on the island of Bintan to supply live chicken to Singapore starting from the end of that year.[17]

References

  1. ^ a b c d e f "Malaysia bans chicken exports: What you need to know". CNA. Retrieved 6 June 2022.
  2. ^ "As Asian food export bans bite, who will be hardest hit?". South China Morning Post. 4 June 2022. Retrieved 6 June 2022.
  3. ^ a b Auto, Hermes (4 June 2022). "Malaysia's chicken supply shortage to be resolved in time for Hari Raya Haji: Official | The Straits Times". www.straitstimes.com. Retrieved 6 June 2022.
  4. ^ "Singapore importers bring in kampung and black chickens from Malaysia after export ban is partially lifted". CNA. Retrieved 14 December 2022.
  5. ^ Auto, Hermes (14 June 2022). "Malaysia partially lifts chicken ban to allow exports of kampung and black chicken | The Straits Times". www.straitstimes.com. Retrieved 14 December 2022.
  6. ^ Auto, Hermes (9 October 2022). "Malaysia to allow export of live broiler chicken from Oct 11 | The Straits Times". www.straitstimes.com. Retrieved 14 December 2022.
  7. ^ Lim, Justin (2 November 2022). "Two Malaysian farms banned from exporting live chicken broilers to Singapore". The Edge Markets. Retrieved 14 December 2022.
  8. ^ Heather Chen. "'Chicken-rice crisis' as Singapore hit by Malaysian export ban". CNN. Retrieved 6 June 2022.
  9. ^ Auto, Hermes (14 June 2022). "Malaysia partially lifts chicken ban to allow exports of kampung and black chicken | The Straits Times". www.straitstimes.com. Retrieved 28 June 2022.
  10. ^ S Bedi, Rashvinjeet (5 July 2022). "Lift ban on chicken exports to Singapore before it is too late, Malaysian breeders tell government". CNA. Retrieved 24 July 2022.
  11. ^ Yeo, Bernie (29 July 2022). "Chicken export ban has done long-term economic damage to M'sian farmers, says DAP MP". Focus Malaysia. Retrieved 30 July 2022.
  12. ^ "Singapore's chicken supply assured via Thailand, other sources: Minister". Bangkok Post. 5 June 2022. Retrieved 24 July 2022.
  13. ^ Heng, Melissa (30 June 2022). "Indonesia approved as Singapore's new source of frozen, chilled chicken | The Straits Times". www.straitstimes.com. Retrieved 24 July 2022.
  14. ^ Yulisman, Linda (21 July 2022). "Second Indonesian company to ship frozen chicken to Singapore | The Straits Times". www.straitstimes.com. Retrieved 24 July 2022.
  15. ^ Ganesan, Deepanraj (21 July 2022). "Indonesia exploring setting up farm in Batam to export fresh chickens to S'pore | The Straits Times". www.straitstimes.com. Retrieved 24 July 2022.
  16. ^ Loh, Victor (13 May 2017). "Watching from farm to fork: Keeping food in Singapore safe in the global era". TODAY. Retrieved 24 July 2022.
  17. ^ Yulisman, Linda (28 July 2022). "Indonesian firm to set up new farms in Bintan to supply live chicken to Singapore | The Straits Times". www.straitstimes.com. Retrieved 30 July 2022.