Latest news with #SaravananThambirajah
Sinar Daily
a day ago
- Business
- Sinar Daily
Zero tariffs, higher risks? Fomca urges vigilance as US poultry, farm imports enter Malaysia
SHAH ALAM - As over 11,000 American products including poultry, dairy and fruits begin entering Malaysia with zero or reduced tariff rates starting Aug 8, the Federation of Malaysian Consumers Associations (Fomca) has raised concerns over food safety, regulatory enforcement and the long-term impact on local agriculture. With public unease growing over the United States (US) poultry imports and their acceptance in Malaysia, Fomca chief executive officer Dr Saravanan Thambirajah has called for a balanced approach to trade that prioritised consumer health and national food security. He said it was true that the European Union (EU) has long banned imports of US poultry treated with chlorine or other antimicrobial rinses. The ban, he said was not due to the method being inherently unsafe, but because EU regulations emphasised the 'farm-to-fork' principle. 'It ensures food safety throughout the production process rather than relying on chemical washes at the end," he told Sinar Daily. He said this in response to claims made online that US poultry was banned in the EU over chlorine washes and public concerns about other safety standards such as chemical rinses, hormones and genetically modified organisms (GMO). On social media, consumers raised concerns about whether food safety was being compromised following the trade deal that eliminated or reduced tariffs on US agricultural goods. Saravanan said while the removal of tariffs was expected to reduce prices and expand market choices, it does not automatically mean all products are accepted without checks. With over 11,000 US products entering Malaysia tariff-free from Aug 8, Fomca has raised concerns over food safety, enforcement and the long-term impact on local agriculture. - Photo: CANVA 'The Department of Veterinary Services (DVS) and the Health Ministry have authority to set conditions, including microbiological testing, residue limits and compliance with our Food Act 1983 and Food Regulations 1985. 'Beyond halal certification from the Department of Islamic Development Malaysia (Jakim), we should insist on independent verification for health-related standards covering contaminants, hormone levels, pesticide residues and chemical treatments before these products enter our market,' he said. Saravanan also acknowledged that Malaysia's food safety regulations were robust on paper but less stringent in certain areas compared to the EU or Japan. 'EU enforces a complete ban on chlorine-washed poultry, whereas Malaysia does not, instead relying on risk assessments by DVS for approvals. 'Similarly, while the EU and Japan prohibit the use of growth-promoting hormones in beef and dairy products, Malaysia adheres to Codex Alimentarius limits, though actual enforcement depends on sampling during import. 'For genetically modified products, the EU imposes strict labelling and traceability requirements, whereas Malaysia mandates labelling under its Food Regulations, but actual compliance remains inconsistent,' he said. Saravanan said Malaysia's existing framework was adequate, provided it is enforced effectively. The real issue, he said, lies in the inconsistent inspections, lack of transparency in test outcomes and limited surveillance capacity, especially as the volume of imported goods rises. He also cautioned that an influx of cheaper US products could strain inspection systems and place local producers at a disadvantage. 'Zero tariffs can create a market flood of cheaper products, especially if large US suppliers undercut local producers. This poses two main risks. 'First, consumer safety. Lower prices may encourage mass imports without proportionate increase in inspection capacity. 'Second, environmental standards. US farming practices may differ in environmental impact—larger carbon footprint, use of intensive farming methods—raising sustainability concerns,' he said. To mitigate this, he proposed three solutions: Strengthening border inspection protocols (chemical residue, microbiological testing). Randomised post-market surveillance in retail outlets. Public disclosure of test outcomes to build trust. Saravanan also highlighted the economic vulnerability of Malaysia's local farmers, who were already burdened by high feed costs and ongoing competition from imports. 'The influx of tariff-free US produce and meat could put significant pressure on local farmers, especially poultry and dairy producers who already face high feed costs and competition from imports like Brazilian chicken. 'While consumers may benefit from lower prices in the short term, over-reliance on imports risks weakening domestic production capacity; contrary to our food security goals,' he said. To protect local agriculture, he urged the government to: Provide support and subsidies to local farmers to upgrade standards and efficiency. Promote local branding and quality differentiation (freshness, farm-to-table appeal). Consider tariff safeguards if imports seriously harm local producers. Although the tariff-free policy promises economic benefits through greater trade, Fomca cautioned against a rush to open the floodgates without enforcing strong food safety and public health protections. 'Tariff reductions can benefit consumers if managed responsibly. But Malaysia must maintain stringent food safety protocols, transparent enforcement and a balanced trade approach that protects both consumer health and domestic agriculture,' he emphasised. On Aug 1, it was reported that under the new bilateral agreement, more than 11,000 American goods ranging from fresh produce to poultry and dairy are now eligible for zero or reduced tariffs in Malaysia starting Aug 8.
The Sun
02-08-2025
- Business
- The Sun
‘Trade deal unlikely to ease cost of living'
PETALING JAYA: The reduction in US tariffs on Malaysian exports is a win for trade, but it would not ease the cost of living for consumers anytime soon, said the Federation of Malaysian Consumers Association (Fomca). Its president Dr Saravanan Thambirajah pointed out that domestic policies, not foreign tariffs, are what shape household expenses. He said the cut from 25% to 19% would boost export competitiveness and job stability but any relief for consumers would be indirect and gradual. 'The US tariff cut on Malaysian exports is mainly a trade move, with little direct effect on prices of domestic goods since it applies to exports, not imports,' he told theSun. 'As such, Malaysian consumers are unlikely to see an immediate drop in retail prices. But if it helps exporters maintain or grow market share, the resulting stability in jobs and incomes could indirectly support purchasing power over time.' Saravanan said key cost-of-living pressures – food, housing, energy and transport – are driven by domestic policies, commodity prices and currency strength, not external tariffs. 'Reducing consumer vulnerability to global trade shocks requires a long-term resilience strategy,' he said, calling for trade diversification to avoid overdependence on a few major economies. He urged greater investment in local food and energy production to ensure supply security and curb unjustified price hikes during global disruptions. He added that targeted subsidies, temporary price controls and SME support are essential to keep domestic supply stable and shield households from external shocks. 'A strong domestic industrial base reduces reliance on volatile global markets and protects consumers from sudden tariff shifts.' Saravanan added that sectors such as agriculture, manufacturing and technology must be strengthened to support job creation, income growth and innovation. He said while the immediate gains from the tariff cut benefit exporters, the government could extend these gains by enforcing price monitoring, promoting export pricing transparency and incentivising reinvestment into local wages or pricing. He also called for industry codes of conduct, public awareness campaigns and stronger market oversight to prevent excessive profit-taking by intermediaries. 'With oversight and cooperation, the economic benefits could gradually flow down to support households.' He said a more resilient economy would also strengthen Malaysia's hand in future trade negotiations.
The Star
24-07-2025
- Business
- The Star
Promising step in helping the poor
PETALING JAYA: Long-term planning and transparency is needed to ensure the impact of the Sejahtera Madani initiative is sustained and credible, say observers. The initiative to galvanise public support to combat hardcore poverty, launched by Prime Minister Datuk Seri Anwar Ibrahim, surpassed its RM50mil target by collecting RM120mil in corporate social responsibility (CSR) contributions, which will be channelled to poor and hardcore poor households under the eKasih database. Fomca chief executive officer Saravanan Thambirajah called the effort a 'promising step' in public-private collaboration. 'Raising RM120mil clearly reflects the strength of Malaysia's collective will to address poverty and rising living costs. 'This success should be viewed as a scalable model that complements the government's social protection framework,' he said when contacted yesterday. He also cautioned that risks such as fund misuse, exclusion of deserving recipients and overlapping aid must be addressed. 'Programmes like this must go beyond image-driven CSR and instead empower communities through skills training and job placement, not just relief.' What A Waste food rescue NGO co-founder Alvin Chen said the overwhelming response to Sejahtera Madani was 'incredibly heartening'. 'This confirms what we've seen on the ground, that Malaysians care deeply. People are not indifferent to poverty. They're hungry to be part of something meaningful,' he said. Chen added that targeted aid, when sustained and managed well, could be transformative. 'We've seen how consistent support – meals, education help or small business aid – can uplift lives. 'But sporadic aid raises hope and then deepens despair. Programmes must be continuous, compassionate and community-driven.' He also urged the government to channel funds directly to grassroots organisations. 'We are the first responders, closest to the pain, yet often the last to receive support. Empowering the rakyat means empowering those who serve them too.' Meanwhile, Suriana Welfare Society chairman Dr James Nayagam stressed the need for independent oversight. 'We must ensure the funds are fairly and transparently distributed. An independent board of trustees should manage the fund, not just government agencies,' he said. James warned of Malaysia's past failures flagged in Auditor-General reports, and called for public reporting of disbursement records. 'It must be documented and displayed for all to see. If managed properly, this initiative can succeed but only if integrity and accountability remain at its core.'
The Star
18-07-2025
- Business
- The Star
Second chance for stalled homes
PETALING JAYA: The Housing and Local Government Ministry has implemented several recovery mechanisms to address abandoned housing projects, including direct mediation with buyers and developers, project completion strategies and the utilisation of public funds for selected developments. The ministry said it facilitates negotiations between affected purchasers and developers or appointed liquidators on reimbursement terms. Where viable, stalled projects may be completed by either the original developer, a 'white knight' or the liquidator, with the aim of obtaining Certificates of Fitness for Occupation or Certificates of Completion and Compliance. It added that specific abandoned projects might be revived using government development allocations to ensure homebuyers receive habitable housing. The ministry stated that it also conducts regular site visits, monitors rehabilitation progress and collaborates closely with state governments, local authorities and technical agencies to expedite resolutions. According to the ministry, a total of 112 abandoned private housing projects have been recorded across Peninsular Malaysia as of May 31, 2025, with Selangor accounting for the highest number. Selangor recorded 42 abandoned projects – representing 37.5% of the total – followed by Kelantan with 18 and Terengganu with 14. The ministry said it remains committed to addressing the issue through a task force for sick and abandoned private housing projects, which has so far rehabilitated 21 projects involving 2,244 housing units. 'The government is fully committed to resolving sick and abandoned housing projects through a structured approach based on four pillars – tracking, resolution, prevention and forward planning,' the ministry said in response to a query from The Star. However, Federation of Malaysian Consumers Associations (Fomca) secretary-general Dr Saravanan Thambirajah said many of these projects – some idle for over a decade – had deteriorated, leaving thousands of homebuyers in the lurch while at the same time, posing serious safety and health hazards. 'These long-abandoned sites are painful symbols of systemic failure. They are not only physical hazards but also a source of emotional and financial devastation for families who invested their life savings or took out long-term loans for homes they will never live in. 'Many affected buyers are still repaying housing loans for properties they can neither occupy nor sell, with little legal recourse to recover their investments. 'Some of the projects were approved by local councils and licensed by authorities, yet when things collapse, the buyers are left to bear the consequences alone. There's often no legal remedy. First-time buyers and young families are especially vulnerable,' he said when contacted. Fomca is calling for structural reforms, including the establishment of a dedicated federal task force to identify and manage chronically abandoned projects. Developments, which have been idle for more than a decade, should be legally declared derelict and channelled through a fast-track process involving safety inspections, title audits, and eventual repurposing. 'Where feasible, such buildings should be converted into public assets, like social housing, youth centres or care homes. This will require legal amendments to enable compulsory acquisition, as well as partnerships between local councils, NGOs and housing trusts.' He also proposed the creation of funding mechanisms, such as federal grants, housing rejuvenation bonds and social impact investments, to support repurposing efforts. He urged authorities to empower residents' associations and civil society groups to report early signs of abandonment, supported by mobile platforms that allow GPS-tagged complaints and photos. 'Most importantly, enforcement agencies must respond swiftly and transparently. If we do nothing, property values will fall, urban decay will spread, and an entire generation of disillusioned Malaysians will be left paying for homes that were never built,' he said.
New Straits Times
09-07-2025
- Business
- New Straits Times
Take advantage of OPR cut but don't borrow too much, says Fomca
KUALA LUMPUR: The latest reduction in the Overnight Policy Rate (OPR) by Bank Negara Malaysia (BNM) will provide welcome relief for consumers and create opportunities for better financial planning. Federation of Malaysian Consumers Associations (Fomca) secretary-general Dr Saravanan Thambirajah said the 25 basis-point cut, which brings the OPR down from 3.00 per cent to 2.75 per cent, would help ease the financial burden of households, particularly those in the B40 and M40 income groups. "Lower monthly loan repayments mean more disposable income for essentials, savings or even investment in long-term goals. For many families, this adjustment in interest rates can make a significant difference," he told the New Straits Times. He said the move by the central bank, its first since May 2023, came at an important time as Malaysia faced external headwinds, including slower global trade and United States tariffs. Saravanan added that the rate cut would also lift consumer sentiment and support domestic spending. "With borrowing costs coming down, people may feel more confident in making purchases or upgrading essential assets, such as homes or vehicles. This helps stimulate the local economy," he said. He also urged consumers to take the opportunity to reassess their financial plans. "Those with existing loans should look into refinancing options or consolidating debts to take advantage of lower interest rates. "This can ease their repayment burden and strengthen long-term financial health," he said. At the same time, he advised against borrowing too much, noting that while lower rates presented opportunities, financial decisions should still be made prudently. "Consumers should see this as a chance to improve their financial resilience, not just to spend more, but to save and prepare for uncertainties," he said.
