Armizan: Micro and small F&B traders can keep using subsidised LPG if prices stay rakyat-friendly
KOTA KINABALU, June 30 — The Ministry of Domestic Trade and Cost of Living (KPDN) has assured that micro and small traders in the food and beverage sector can continue to utilise subsidized LPG cylinders as long as they offer 'rakyat prices' (affordable prices) to consumers.
Its Minister, Datuk Armizan Mohd Ali, said that food and beverage vendors who offer services at reasonable prices need not worry, as they will continue to be guaranteed access to LPG subsidies.
He stated that this is among the aspects considered in amending the Supply Control Regulations (Amendment) 2021 (PPKB (Amendment) 2021). Engagement sessions to gather feedback and views on the proposal will be held starting tomorrow until Op Gasak concludes on October 31.
'Unlike the PPKB (Amendment) 2021, which only allowed the use of subsidised LPG cylinders not exceeding 42 kilograms at any given time, the implemented amendment will take into account the needs of micro and small traders in the food and beverage sector.
'Besides recognising the needs of these traders, in this amendment, we will also look at control mechanisms in the context of ensuring that there are no leakages in this subsidy, especially related to smuggling and misappropriation,' he said during a press conference here today.
Earlier, Armizan attended the PPKB (Amendment) 2021 Engagement Session involving food and beverage traders' associations in Sabah to gather their views and feedback on the proposed amendment to the regulations.
Armizan said feedback from micro and small traders in the food and beverage sector was crucial for establishing risk management to prevent leakages and, subsequently, ensure that no parties take advantage of public subsidies.
He revealed cases of large-scale purchases of subsidised LPG gas, with some being used at business premises while the remainder was resold at certain prices to parties involved in misappropriation.
'Therefore, we need to formulate control mechanisms related to the subsidised LPG cylinder issue,' he said, urging traders' associations to hold engagement sessions with their respective members and submit memorandums of proposal directly to the ministry.
He added that the ministry has also established a technical committee to review appropriate 'rakyat prices' to be imposed on consumers, taking into account basic cost of living data to be released by the Department of Statistics Malaysia as a guide.
Meanwhile, Armizan said that KPDN has summoned ice manufacturers and frozen food producers in Peninsular Malaysia to explain the basis for their recent price changes, effective tomorrow.
Armizan was asked to comment on the viral issue involving both companies, which were reported to have increased their product prices on social media recently.
'What is the basis, whether it is due to increased operating cost, raw material cost, or due to SST (Service Tax)? If it is due to SST, we will ask them to provide the basis for applying the Price Control and Anti-Profiteering Act (AKHAP).
'We will also examine the details or components that caused them not only to change prices but also the margin or range of that increase,' he explained. — Bernama
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