Malaysia has partially lifted the ban by allowing poultry producers and importers in Singapore to bring in live free-range chickens. On Aug 1, Malaysia announced that its chicken provide had stabilised and that this now can foreign trade the surplus. However , no real lifting of the full ban has been declared.
If Singaporean consumers find that Indonesia’s chickens are of similar quality and so are reasonably priced compared to Malaysia’s, Singapore will likely still import from Philippines no matter what Malaysia will. However , Indonesia will find tough competition against Malaysia and Thailand within the poultry market.
Singapore already has an adequate supply of freezing chicken. When Malaysia lifts its prohibit, Singapore will carry on and rely on Malaysia regarding live chickens. Over time, Indonesia can only compete in chicken exports if it can in some way export live hens to Singapore. The particular ongoing discussions to put together chicken farms in Batam is only the initial step in making this probable.
Whether Indonesia is prepared to compete with Malaysia in this sector, Southeast Asian countries probably continue to diversify their particular food supply given the vagaries of environment change and worldwide instability.
Siwage Dharma Negara is senior other and coordinator of the Indonesia Studies Programme, and the coordinator of the APEC Study Centre at ISEAS — Yusof Ishak Institute.
Peh Ko Hsu is an undergraduate within Nanyang Technological University’s Bachelor of Interpersonal Science in Economics programme, and an analysis intern with ISEAS – Yusof Ishak Institute.
This comments first appeared on ISEAS-Yusof Ishak Institute blog The particular Fulcrum.