Laundry operators call for one-year moratorium on LPG subsidy removal
KUALA LUMPUR: Laundry operators have called on the government to impose a one-year moratorium on the removal of subsidised LPG under Ops Gasak, which began on May 1.
They said that this delay is necessary to assess the potential consequences on businesses and to ensure a balanced solution that protects both operators and consumers.
The Malay Unified Laundry Association (Mula), along with the Malaysia Laundry Association (MLA) and the Self-Service Laundry Operators Association (PPDLDM) in a joint statement said their members depend on subsidised LPG for their business.
"The subsidy removal, enforced through Ops Gasak which prohibits the use of subsidised LPG in non-domestic premises including laundries, has made it mandatory for operators to switch to commercial LPG, which costs approximately 2.5 times more than subsidised LPG.
"This sharp increase in fuel costs has had a significant impact on the viability of operations," Mula President Zarina Ismail said.
The small and medium-sized laundry operators lack the financial capacity of larger businesses to absorb this cost hike without raising service prices, she said.
"This could adversely affect their competitiveness and may even lead to business closures if appropriate adjustments are not made," Zarina warned.
Hence, industry players have called on the authorities to implement a one-year moratorium on enforcement to allow for a comprehensive review.
They also urged for a suspension of enforcement actions on the laundry sector until a mutual agreement is reached and to allow laundries to continue using subsidised LPG.
Earlier it warned that consumers are expected to pay more for laundry services after operators across Malaysia decided to raise prices in response to a steep hike in liquefied petroleum gas (LPG) costs.
Regular washing services are expected to increase to RM10 from RM7 per kilogramme, while dry-cleaning for items such as shirts may rise to RM15 or RM16 from RM12 each.
Persatuan Pengusaha Dobi Melayu (Mula) secretary-general Mohd Hafizul Razali said the shift to commercial LPG, priced at around RM65 to RM70 for a 14kg cylinder, represents an increase of more than two and a half times the previous subsidised rate of RM27 to RM30.
"Whether we like it or not, laundry operators now have no choice but to adjust prices," he told NST, adding that industry players cannot absorb the cost increase.
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