MCA urges government to revise LPG pricing for SMEs
MCA strongly calls on the government to immediately review and reduce the price of liquefied petroleum gas (LPG) for small and medium-sized enterprises (SMEs) to prevent further hardship on consumers who are already struggling with the rising cost of living.
Since the Domestic Trade and Cost of Living Ministry launched Ops Gasak on May 1, the MCA Economic and SME Affairs Committee has been inundated with complaints from business associations and local entrepreneurs.
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Free Malaysia Today
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- Free Malaysia Today
Economist backs govt's LPG rule enforcement to optimise subsidies
All restaurants, cafés and hawker stalls are required by law to use commercial-grade 14kg LPG cylinders, which cost RM70 each. (AP pic) PETALING JAYA : An economist has expressed support for the government's decision to enforce existing cooking gas cylinder regulations, saying it is necessary to prevent the misuse of subsidised liquefied petroleum gas (LPG) and ensure they reach their intended beneficiaries. Sunway University's Yeah Kim Leng said the move would allow Putrajaya to reduce the RM3.4 billion it spends on LPG subsidies annually, allowing the savings to be reallocated to development programmes. 'The subsidy amount is sizeable and better used for health, education and other welfare development programmes. This should be communicated well, in line with the country's subsidy rationalisation reforms,' he told FMT. Yeah, however, said traders, especially small vendors and hawkers, should be allowed a grace period to help them adjust to the changes. Yeah Kim Leng. 'Rather than forceful enforcement, a more friendly and compassionate approach—such as warnings for first-time offenders and closer monitoring—would be desirable and less disruptive to small traders and hawkers,' he said. Last month, the domestic trade and cost of living ministry launched Ops Gasak in an effort to curb the misuse of subsidised LPG, particularly by industrial users and large-scale businesses. Businesses—including restaurants and cafés—are required to use commercial-grade 14kg LPG cylinders, costing RM70 each, and not subsidised household cylinders priced at RM26. Those that use or store more than 42kg, or three cylinders, must also obtain a scheduled controlled goods permit. Although introduced in 2021, the rule is only now being strictly enforced with the ultimate goal of reducing subsidy leakages. Domestic trade and cost of living minister Armizan Mohd Ali said the initiative aims to curb the misuse of subsidised LPG by ineligible sectors and prevent the illegal transfer of gas from subsidised cylinders to non-subsidised ones for resale at a profit. He also said enforcement officers were presently prioritising advocacy over punitive measures, and that no compounds will be issued or seizures conducted at this stage. Yeah said many traders may not even be aware of the regulations in question, and suggested that the government set a grace period before fully enforcing the law. He said small businesses, especially hawkers, may not be familiar with the law. 'Given that many small traders and hawkers are updated through word of mouth, a grace period coupled with well-crafted public communication and education programmes would be helpful in reducing misuse of subsidised gas.'
The Star
2 hours ago
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THE Cooking Gas Operation (Ops Gasak) is currently underway from May 1 to Oct 31, 2025. Its main focus is to curb illegal activities such as decanting, smuggling, and misuse of cooking gas by medium- and large-scale industries. The legal authority underpinning Ops Gasak is the Supply Control Act 1961, the Price Control and Anti-Profiteering Act 2011, and the Supply Control (Amendment) Regulations 2021, known as PPKB (Amendment) 2021. This operation does not introduce any new policy or regulation, let alone involve any cutting or removal of liquefied petroleum gas (LPG) subsidies, as alleged by certain parties.
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2 hours ago
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‘Go after border criminals for misuse of subsidised LPG'
PETALING JAYA: Enforcement against the misuse of subsidised liquefied petroleum gas (LPG) under Ops Gasak should focus on large-scale operations and at the country's borders instead of petty traders and hawkers, says MCA president Datuk Seri Dr Wee Ka Siong ( pic ). He said the main issue is smuggling activities at the border and the abuse of targeted subsidies. 'The focus should be on factories and borders. It should not be to punish small traders who are trying to earn a living,' he said in a video uploaded on social media yesterday. Dr Wee said that videos and complaints from small traders about the raids showed that action was taken not only on big businesses. (According to the Domestic Trade and Cost of Living Ministry, Ops Gasak being carried out from May 1 to Oct 31 is meant to deal with illegal decanting activities, smuggling, and usage by large and medium-scale industries.) Dr Wee said that the government, if it is allowing petty traders to use subsidised gas, should bring the proposal to Cabinet. 'Make a final decision that from now, all petty traders can use subsidised LPG gas,' Dr Wee said. He also said roadside traders had been using subsidised gas cylinders up till 2024 without fear of any enforcement action taken against them. 'There have not been large-scale operations on this until May this year, which targeted roadside and petty traders.' He said that even the first Pakatan Harapan administration once mandated restaurants and eateries to use commercial gas in 2019 but later rescinded the move in view of the burden on the public. Dr Wee has recently urged the government to give hawkers an assurance that they can continue using subsidised LPG so that it would not lead to food prices going up. He said this in response to concerns raised by hawkers and consumers about a possible hike in prices due to Ops Gasak.
