KUALA LUMPUR (BLOOMBERG) - Malaysia is looking into the findings by Hong Kong's consumer watchdog that cancer-causing substances were detected in biscuits and crackers, including those produced by Hup Seng Industries.

The Hong Kong Consumer Council last Monday (Oct 18) announced that 60 samples of pre-packed biscuits and crackers it tested contained cancer-inducing elements such as glycidol or acrylamide.

The council also found that 40 per cent of the products analysed had misleading nutrition labels.

Malaysia's Food Safety and Quality Division, citing an early investigation, said in a statement last Friday: "The factory premises of (Hup Seng) hold HACCP (Hazard Analysis and Critical Control Points) and KKM (Malaysia's health ministry) certificates."

The division of the health ministry is also conducting a verification on the company's premises, it said.

Hup Seng said its "special cream crackers manufactured and marketed in Malaysia are fit for human consumption and are in compliance with the local regulations, quality standards and food safety standards", a company representative said in an e-mailed statement on Sunday.

The company said it will fully cooperate with the authorities on the investigation.

Hup Seng is a leading maker of biscuits in Malaysia, according to its website. Its shares fell 2.7 per cent on Friday, the most in two months.