South-east Asian food imports to rise amid safety fear

Significance

ASEAN member countries are working on improving food safety in response to poor hygiene standards, which cost the region tens of millions of dollars from lost sales.

Impacts

• Pressure for quality controls will create strong demand for imported testing and laboratory equipment, and technical skills.
• Financing difficulties will force many smaller food processors out of the industry, enabling more efficient production chains.
• ASEAN firms will struggle to establish a regional presence without regulatory reforms, especially at the customs level.
• Substantial investment will be needed in quality controls, supply chains and new equipment.