Streamline Food Regulations To Boost Intra-ASEAN MSME Trade - IDEAS

KUALA LUMPUR, Nov 14 (Bernama) -- ASEAN must step up efforts to streamline food regulations and reduce regulatory complexity to help micro, small and medium enterprises (MSMEs) participate effectively in regional trade, according to the Institute for Democracy and Economic Affairs (IDEAS).

IDEAS assistant manager for research Sharmila Suntherasegarun said that although ASEAN’s food exports grew by about 30 per cent in recent years, 23 per cent remains within the region, up only marginally from 18 per cent in 2003.

“A major factor limiting deeper integration is regulatory divergence, especially regarding food standards and labelling requirements,” she said when presenting the ASEAN Integration Report 2025 here today.

She said the study examined the extent to which ASEAN member states align with international food standards and found a mixed picture, with Malaysia, Singapore and Vietnam showing strong alignment, Indonesia and Thailand partial alignment, and several CLM countries — Cambodia, Laos and Myanmar — having limited implementation, particularly in food standards and lab testing protocols.

She also said inconsistent requirements such as front-of-pack labels, nutrition information, import details and even basic terminology like “best before” versus “expiry date” often lead to shipment delays, re-labelling and higher compliance costs, challenges that fall most heavily on MSMEs.

“These may seem minor individually, but they accumulate and become significant barriers for smaller exporters,” she said. 

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Sharmila said one practical way to reduce regulatory friction is through stronger digital certification and interoperable systems. 

“Tools such as digital sanitary and phytosanitary (SPS) certificates, risk management systems and traceability tools like blockchain can strengthen data integrity and build trust across borders. 

“However, for these tools to work, ASEAN needs foundational interoperability between government systems, whether in customs, agriculture, health or trade agencies,” she said.

She added that domestic systems in some countries still operate on separate platforms that do not share data, creating bottlenecks before information even reaches the regional level and slowing down the very processes digital systems are meant to improve.

Sharmila also highlighted persistent logistics challenges, noting wide variations in border clearance times, cold-chain capacity and shipment requirements across the region.

“Clearance times can range from as short as six hours in Singapore to several days elsewhere, while cold-chain capacity remains limited, with only 30 to 40 per cent of perishable goods transported under temperature-controlled conditions,” she said.

She added that ASEAN should begin preparing for next-generation regulatory technology, including artificial intelligence-assisted labelling and risk-based inspections. 

“MSMEs need support, financing and training to adopt these tools so that no one is left behind as food regulation becomes more technologically driven,” she said.

-- BERNAMA