Soft loans for firms hurt by EU de-listing

By AUDREY EDWARDS

KUALA LUMPUR: Companies affected by the Government's recent move to voluntarily stop exporting seafood products to the European Union (EU) will get short-term loans.

Health Minister Datuk Liow Tiong Lai said the Cabinet decided in principle last week that the companies are provided with soft loans.

“It is to help them continue with their business as they do not have a market now and have to keep stocks.

“And they are tied to the bank's credit,” he told reporters yesterday after meeting Agriculture and Agro-based Industry Minister Datuk Mustapa Mohamed and other stakeholders.

Forty-six companies are affected in the de-listing carried out in mid-June, to avoid a total ban by the EU. They include processing plants, aquaculture harvesters and transporters.

Liow said the loans would be given on a case-by-case basis.

“At this time, we hope the banks will not stop their credit. We have asked Bank Negara and the Ministry of Finance to help out,” he added.

He said the Cabinet had also agreed to increase the number of staff in both ministries and the Fisheries Development Authority of Malaysia to upgrade their capability as competent authorities to monitor the establishments and ensure they fulfilled EU requirements.

Laboratories would also be upgraded and staff sent for training, he added.

Liow also said that the first batch from the 46 companies would be ready for EU inspection from Aug 1.

Among the measures that some companies have taken to ensure quick re-listing with the EU are to purchase their own lorries and manufacture their own block ice that comply with the requirements. Mustapa said two committees had been formed to ensure Malaysia could be included into the list again.

Courtesy: The Star Publications