Kuala lumpur: 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 emphasized that despite a 30 percent growth in ASEAN’s food exports in recent years, only 23 percent stay within the region, a slight increase from 18 percent in 2003.
According to BERNAMA News Agency, Sharmila highlighted that regulatory divergence, particularly in food standards and labeling requirements, is a significant barrier to deeper regional integration. Presenting the ASEAN Integration Report 2025, she noted that while Malaysia, Singapore, and Vietnam align strongly with international food standards, Indonesia and Thailand show partial alignment. In contrast, Cambodia, Laos, and Myanmar have limited implementation, affecting food standards and lab testing protocols.
Inconsistent requirements such as front-of-pack labels, nutrition information, and basic terminology like ‘best before’ versus ‘expiry date’ contribute to shipment delays, re-labeling, and higher compliance costs, particularly impacting MSMEs. Sharmila argued that while these issues might seem minor individually, they collectively pose significant barriers for smaller exporters.
Sharmila proposed stronger digital certification and interoperable systems as practical solutions to reduce regulatory friction. Tools like digital sanitary and phytosanitary (SPS) certificates, risk management systems, and traceability tools such as blockchain can enhance data integrity and build trust across borders. However, she stressed that ASEAN requires foundational interoperability between government systems, whether in customs, agriculture, health, or trade agencies, to make these tools effective.
She pointed out that domestic systems in some countries still operate on separate platforms that do not share data, creating bottlenecks and slowing down processes that digital systems are designed to improve. Additionally, persistent logistics challenges, such as wide variations in border clearance times, cold-chain capacity, and shipment requirements, continue to hinder trade efficiency across the region.
Sharmila noted that clearance times can vary significantly, from as short as six hours in Singapore to several days elsewhere, and cold-chain capacity is limited, with only 30 to 40 percent of perishable goods transported under temperature-controlled conditions. She advised that ASEAN should prepare for next-generation regulatory technology, including artificial intelligence-assisted labeling and risk-based inspections.
She concluded by stating that MSMEs require support, financing, and training to adopt these technological tools, ensuring no one is left behind as food regulation becomes more technologically driven.