ACCREDITATION FROM OTHER COUNTRIES
Ms. Fu said Singapore does not have significant import charges that would hinder the establishment of new markets.
Countries like Thailand and Australia are accredited to import live and chilled chicken, but 99% of the market is taken by Malaysia, she said.
Although Singapore accredits other countries, importers continue to work with Malaysia due to proximity and a long history together, she said.
“There will always be a cost competitive reason for importers to gravitate towards the source market,” she added.
Sometimes that’s because of proximity and established supply chains that allow goods to arrive faster, she said.
“They (importers) will be reluctant to try new areas which may increase costs. They may be reluctant to try new products because they are unfamiliar to consumers,” she said.
“So from time to time we have to assess the need for a license condition. We have done this for eggs and we will consider whether it is also necessary for chicken.”
She cautioned, however, that the more conditions the country imposes on business licenses and regulations, the more rigidity they will introduce.
“We may have to do that because it’s a trade-off to encourage business or to force business to diversify,” she said.
“If we find out there’s a strategic reason for us to do it, we will do it.”