Ms Lina Gan, a manager at Kee Wee Hup Kee Food Manufacture in Johor, said the company stopped producing the Ego Hao Jin Bang candy a few months ago because of poor sales.

The company immediately took steps to recall the remaining candies in domestic and global markets after it was notified about the unsafe lead levels on Monday by the Californian authorities.

'We have already recalled the product and we don't produce it any more,' Ms Gan said.

She said the batch of Ego candies may have been contaminated during production, and an investigation was under way.

According to its website, Kee Wee Hup Kee produces a wide range of products, including biscuits, dried food, preserved fruits and noodles, that are exported to markets in the United States, Europe and Asia.

California's Department of Public Health issued a warning on Tuesday after a recent analysis found the Ego Hao Jin Bang candy contained up to 0.73 parts per million of lead.

The state considers candy with lead levels of more than 0.1 parts per million to be contaminated.

Lead can be particularly harmful for young children and developing foetuses, and could result in learning disabilities and behavioural disorders.

ASSOCIATED PRESS