KUALA LUMPUR/BANGKOK – A trade dispute between Malaysia and Thailand is escalating, with the latter saying it may raise the issue at the World Trade Organization (WTO).
The row began in May when Thailand stepped up testing of Malaysian seabass shipments at a major border crossing after the authorities detected chemical and antibiotic residues. The additional checks slowed customs clearance, causing spoilage of fresh fish and prompting complaints from Malaysian exporters.
Malaysia responded earlier in June by suspending imports of five Thai shrimp species, a move that effectively cut off a market worth more than US$10 million (S$12.8 million) a year for Thai exporters.
Thailand shipped more than US$5 million of shrimp to Malaysia in the first four months of 2026. The shrimp industry accounts for roughly a fifth of the country’s seafood exports.
After less than two weeks of the ban, Thai Deputy Prime Minister and Commerce Minister Suphajee Suthumpun said on June 10 that Thailand could raise the issue at the Association of South-east Asian Nations or the WTO if bilateral talks fail.
She criticised Malaysia’s decision to halt imports immediately rather than pursue consultations, describing the move as “inappropriate”.
In a statement to Bloomberg, Malaysian Deputy Agriculture and Food Security Minister Chan Foong Hin said the restrictions were announced in May and only took effect on June 1, giving exporters about two weeks to prepare and adjust.
Thai Agriculture Minister Suriya Jungrungreangkit said he is prepared to travel to Malaysia to seek a resolution.
“I believe we can resolve this issue together and resume Thai shrimp exports to Malaysia,” Suriya said. “Both sides benefit from trade, so there should be a path towards a solution.”
Chan said Malaysia remains committed to dialogue and cooperation to resolve the matter. “Malaysia has maintained an open and constructive approach,” he said. BLOOMBERG