Japan aims to slash reserve rice prices as costs spike from heat, tourism
TOKYO, May 26 — Japan aims to drastically cut stockpiled rice prices to ¥2,000 (RM59.05) per five kg and speed up getting rice onto shop shelves as consumers suffer from sky-high staple grain costs, the farm ministry said today.
Surging rice prices — due in part to crop damage from extreme heat and increasing demand from tourism — are a serious concern for Prime Minister Shigeru Ishiba's government, with its public approval rating stuck around a record low ahead of an upper house election in July.
The government will sell 300,000 metric tons of stockpiled rice via discretionary contracts to retailers, the farm ministry said, after new Agriculture Minister Shinjiro Koizumi pledged last week to quickly move rice to store.
To help bring down the prices, the government will also cover transportation costs so that stockpiled rice will be on retail shelves in early June at around ¥2,000 — which would be about half the average rice price at supermarkets.
Japan will consider selling stockpiled rice beyond retailers depending on the situation.
'The price of rice has about doubled compared to last year. We felt continuing the same way as before would not meet the people's expectations,' Koizumi told his new team of farm ministry officials who handle the rice price issue.
'We will dispel the public concerns about rice prices with even greater speed and a greater sense of urgency,' he said.
On Friday, Koizumi met with Rakuten Group CEO Hiroshi Mikitani, who said the online retail giant was prepared to support the government's efforts.
The government's stockpiling policy requires it to purchase the same amount released at a later date, but the nation decided not to buy back as the repurchase system could keep prices higher.
In March, the government released stockpiled rice through two auctions for 210,000 metric tons to ease soaring rice prices.
But only about seven per cent reached retailers as of late April because the distribution system was multi-layered and time-consuming. — Reuters
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
33 minutes ago
- Free Malaysia Today
Vision 2020 plaque removed for safety reasons, says KL Tower
Visitors queuing up to enter the Kuala Lumpur Tower after its reopening. The Vision 2020 time capsule was opened on April 13. (Bernama pic) PETALING JAYA : A plaque marking where the Vision 2020 time capsule was planted at the Kuala Lumpur Tower was removed for safety reasons, according to the skyscraper's operator. LSH Service Master Sdn Bhd said the plaque originally functioned as a cover for the special chamber where the time capsule was located, but could no longer be securely closed after the capsule was opened on April 13. 'This posed a risk of injury to visitors passing by the area. Therefore, it was removed for safety reasons, in line with the management's priority to ensure the well-being of all visitors,' said the company's CEO Khairil Faizal Othman in a statement. Khairil added that there were no longer any historical elements or artifacts stored in the chamber after the time capsule was opened by former prime minister Dr Mahathir Mohamad. He also said the plaque had not been discarded but has been 'properly stored' by the company, though he did not elaborate on its whereabouts. Khairil also denied that the company intended to erase or alter history by removing the plaque, in response to a claim by Bersatu MP Wan Saiful Wan Jan. He said: 'All actions taken were based on safety considerations, corporate compliance, and a commitment to preserving the legacy of KL Tower.' Khairil added that the plaque featured the tower's old corporate logo and that it cannot be used for official display in line with the skyscraper's rebranding. Earlier today, Wan Saiful reportedly urged communications minister Fahmi Fadzil to explain why the plaque had been removed, saying it should have stayed put since it was meant to commemorate the time capsule planted in 1996. The Tasek Gelugor MP questioned if the government was attempting to erase history, particularly Mahathir's role in planting the time capsule.
Free Malaysia Today
5 hours ago
- Free Malaysia Today
Yinson surges 14% on RM9bil buyout news
US-based Stonepeak Partners is holding 'exclusive talks' with the family of Yinson founder Lim Han Weng. (Facebook pic) PETALING JAYA : Yinson Holdings Bhd shares surged today on news a US investment fund is in talks for a buyout of the oil and gas services provider, potentially valuing it as much as RM9 billion. Its shares jumped as much as 29 sen or almost 14% to RM2.39 this morning, its highest level in five months. At the midday break, a total of 9.5 million shares changed hands. The counter pared its gains in the afternoon session and was trading at RM2.29 at 3.40pm, valuing the group at RM7.05 billion. Before today's run-up, Yinson shares have fallen about 17% year to date. Investors snapped up the stock after Bloomberg reported today that US-based Stonepeak Partners is holding 'exclusive talks' with the Lim family, which holds a 26.6% stake in Yinson, to take the company private. The Bloomberg report quoted sources with knowledge of the matter. Yinson has yet to comment on the purported deal. The RM9 billion proposal translates to about RM3.23 per share, a premium of about 37.5% over today's midday price of RM2.35, and 54% over yesterday's RM2.10 closing price. Of the 10 research houses covering Yinson, all have 'buy' calls with an average 12-month target price of RM3.54. From lorry company to global player Yinson was founded by its executive chairman, Lim Han Weng, 72, and his wife, Bah Kim Lian, in 1984, as a lorry transport company before diversifying into the oil and gas sector. In 1996, Yinson went public and continued to expand its global presence. It is now one of the world's biggest providers of floating production, storage, and offloading (FPSO) vessels, which are used to extract and store crude oil. Forbes lists Han Weng and his family's net worth at US$480 million (RM2.03 billion) as of April 16. His son, Chern Yuan, is the group's CEO while another son, Chern Wooi, is executive chairman of listed Lianson Fleet Group Bhd (formerly Icon Offshore Bhd), which was acquired in 2024. The company has US$21 billion (RM88 billion) worth of leasing contracts extending till 2048, according to Forbes. Yinson is also in the business of producing renewable energy and building electric vehicle charging networks. For the financial year ended Jan 31, 2025, the group posted a net profit of RM752 million, down 22% year-on-year, while revenue fell 38% to RM7.6 billion from RM11.65 billion a year earlier.
Free Malaysia Today
7 hours ago
- Free Malaysia Today
HSBC chair Tucker to return to Asia insurer AIA after overseeing bank overhaul
Mark Tucker served as AIA's chief executive and president between 2010 and 2017. (EPA Images pic) HONG KONG : HSBC Holdings' high-profile chairman Mark Tucker will return to the insurance sector as chair of Hong Kong-based AIA Group, after having presided over top management changes and navigated Sino-US tensions at the Asia-focused lender. Tucker will depart HSBC by Sept 30 and will step into the role of AIA chairman on Oct 1, the two companies said in separate statements today. Tucker served as AIA chief executive and president between 2010 and 2017. Brendan Nelson, a former KPMG partner and board member who is the chair of HSBC's group audit committee, would become interim chairman from Oct 1, as the bank continues with its search for a permanent replacement, it said. Tucker's departure from HSBC, which generates the bulk of its revenues and profits in Asia, will cap an eventful eight-year tenure at the lender, during which he oversaw a sweeping restructuring and shrinking of the bank. Under Tucker's stewardship, HSBC has had to deal with a constant drumbeat of geopolitical tensions, as Britain, together with the US, clashed with China, where the bank has its second home and major profit engine in the financial hub of Hong Kong. Those experiences, as well as his deep Asia and insurance sector expertise, will stand him in good stead in the new role at AIA, as the pan-Asian insurer looks to bolster market share in the key markets of mainland China and Hong Kong. Tucker will replace Edmund Sze-Wing Tse as AIA's chairman. Shares in AIA were up 1.8%, while Hong Kong shares of HSBC were down 0.3%. Hong Kong's benchmark index was off 0.2%. Besides mainland China and Hong Kong, AIA's 18 markets in Asia include Thailand, Singapore, Malaysia, Australia, Indonesia, New Zealand, the Philippines and South Korea. It also has a joint venture in India. A one-time professional soccer player, Tucker, who took AIA public shortly after his appointment in 2010, has previously held several leadership jobs in the insurance sector, including at Britain's Prudential. Asia pivot Tucker's departure from HSBC was not a surprise. He was nearing the end of the nine-year maximum advised for chair roles under Britain's corporate governance code, and the bank announced on May 1 that he would step down before the end of the year. Since joining HSBC in 2017, becoming the bank's first-ever externally recruited chairman, British-born Tucker worked with four different CEOs, and he was involved in the selection of three of them. Tucker was seen by investors, analysts and insiders as a key person at the bank to help it navigate geopolitical tensions and expand its business in China as part of its Asia pivot to boost growth. Geopolitical tensions came to a head for HSBC in May 2023 when its then-biggest shareholder, Ping An Insurance of China, lobbied for the bank to spin off its Asian business, a proposal ultimately defeated at HSBC's annual shareholder meeting. HSBC's senior independent director Ann Godbehere said the selection process to appoint a permanent chairman was underway. Tucker will serve as a strategic adviser to CEO Georges Elhedery and the board while the recruitment search remains in place. 'Brendan's extensive experience on UK-listed boards, and as group audit chair, makes him ideally placed to assume the role on an interim basis while the process continues,' Godbehere said of Nelson. He previously served as an independent non-executive director at several major UK-listed companies, including oil giant BP and financial services firm NatWest. HSBC is expected to search for Tucker's successor from its current board, sources familiar with the bank's plans told Reuters. 'Among the leading candidates is former Citigroup president Jamie Forese,' the sources said.
