Thailand, Malaysia clash over seafood trade curbs
The row begins as Thailand steps up testing of Malaysian seabass shipments
Add BT as a preferred source
[BANGKOK/KUALA LUMPUR] A trade dispute between Malaysia and Thailand is escalating, with the latter saying it may raise the issue at the World Trade Organization.
The row began last month when Thailand stepped up testing of Malaysian seabass shipments at a major border crossing after authorities detected chemical and antibiotic residues. The additional checks slowed customs clearance, causing spoilage of fresh fish and prompting complaints from Malaysian exporters.
Malaysia responded earlier this month by suspending imports of five Thai shrimp species, a move that effectively cut off a market worth more than US$10 million a year for Thai exporters. Thailand shipped more than US$5 million of shrimp to Malaysia in the first four months of 2026. The shrimp industry accounts for roughly a fifth of the country’s seafood exports.
After less than two weeks of the ban, Thai Deputy Prime Minister and Commerce Minister Suphajee Suthumpun said on Wednesday (Jun 10) that Thailand could raise the issue at Asean or the WTO if bilateral talks fail.
She criticised Malaysia’s decision to halt imports immediately rather than pursue consultations, describing the move as “inappropriate”.
In a statement to Bloomberg, Malaysian Deputy Agriculture and Food Security Minister Chan Foong Hin said the restrictions were announced in May and only took effect on Jun 1, giving exporters about two weeks to prepare and adjust.
Thai Agriculture Minister Suriya Jungrungreangkit said he has prepared to travel to Malaysia to seek a resolution.
“I believe we can resolve this issue together and resume Thai shrimp exports to Malaysia,” Suriya said. “Both sides benefit from trade, so there should be a path towards a solution.”
Chan said Malaysia remains committed to dialogue and cooperation to resolve the matter. “Malaysia has maintained an open and constructive approach,” he said. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
DBS to launch tokenised physical gold for retail customers in Singapore
‘I felt like dying’: Thai Singha beer scion speaks up after disclosure of alleged sexual abuse
CICT’s S$3.9 billion Paragon buy draws scrutiny over timing, funding at EGM
Evergrande’s liquidation prompts some PwC partners to shield assets, contemplate divorce
