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Free Malaysia Today
22-05-2025
- Business
- Free Malaysia Today
Redirect subsidy reform savings to strengthen federal aid initiatives, says expert
The subsidy for RON95 benefits the richest Malaysians disproportionately. PETALING JAYA : An economist and a consumer group have urged the government to ensure that savings from fuel subsidy rationalisation be used to strengthen federal aid initiatives such as Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (Sara). Goh Lim Thye of Universiti Malaya and the Federation of Malaysian Consumers Associations (Fomca) told FMT such reforms are essential and timely given that blanket subsidies tend to benefit high-income households disproportionately. Goh pointed to data shared by Prime Minister Anwar Ibrahim showing that foreign nationals and the richest 15% of Malaysian consumers enjoyed as much as 40%, or RM8 billion, of the RON95 petrol subsidy last year. 'Blanket fuel subsidies are fiscally draining and structurally regressive, especially when higher-income households, who drive more and own multiple vehicles, end up receiving a larger share of government support,' he said. 'To ensure long-term sustainability, Malaysia must move away from untargeted, consumption-based subsidies toward a more needs-based, data-driven social support system,' he added. Finance minister II Amir Hamzah Azizan previously said the government is expected to save between RM7.2 billion and RM7.5 billion annually by introducing targeted diesel subsidies, almost double the initial forecast of RM4 billion. The government rolled out the targeted subsidy for diesel in mid-2024, while the subsidy for RON95 is likely to be rationalised by mid-2025. Goh said that reforming the subsidy system could help preserve public funds for key aid initiatives, including child nutrition, elderly care, and targeted cash assistance such as STR and Sara. 'Savings from such reforms, potentially in the billions, could also be redirected to enhance the depth and coverage of existing safety nets, support rural development, or improve critical services like healthcare and education,' he added. Fomca CEO T Saravanan said subsidy schemes should be implemented with a 'clear, transparent, and fair' targeting mechanism that includes robust monitoring and enforcement to prevent profiteering. 'Subsidy reform is critical for long-term fiscal and social sustainability, but it should be gradual, inclusive, and accompanied by effective communication and engagement with consumers to prevent shocks and negative public sentiment,' he said. Saravanan added that any move to redirect savings must lead to broader coverage and increased payouts in aid programmes to ease cost-of-living pressures. For Goh, the fuel subsidy rationalisation move is ultimately a test of the government's readiness to make difficult choices. 'Accurate targeting (also) depends heavily on reliable and timely socioeconomic data. (Therefore) platforms like the central database hub (Padu) must be updated continuously and verified to avoid exclusion errors,' he said. 'Without that, even well-intentioned redistribution could fail to benefit those most in need, undermining public trust and policy,' Goh added.
The Star
17-05-2025
- Business
- The Star
‘Define mixed development'
PETALING JAYA: Consumers and stakeholders have called for the proposed Real Property Development Act (RPDA) to clearly define what constitutes mixed development, which currently lacks protection under the law. Voicing their support for the government's proposal to introduce the RPDA, they say it is a long-overdue effort to protect buyers of commercial and mixed-use properties. They said mixed developments such as retail, commercial, small office/home office (Soho), small office/flexible office (Sofo) and small office/versatile office (Sovo) developments lack legal protection under the existing Housing Development Act (Act 118). Federation of Malaysian Consumers Association's (Fomca) chief executive officer Saravanan Thambirajah, emphasised the critical need for the RPDA to clearly define what constitutes mixed development. 'The Act must clearly state what qualifies as mixed development and ensure that all such projects are fully regulated – just like residential ones. 'This clarity is essential to ensure comprehensive regulation and protection for buyers in this evolving sector of the property market,' he said in an interview yesterday. Saravanan noted that robust safeguard measures are necessary to protect buyers from abandoned projects. 'We need mandatory developer licensing and financial checks, regulated accounts for buyer payments, strong and transparent Sale and Purchase Agreements, and a clear 'Option to Purchase' system to let buyers exit if a project is delayed.' He also advocated for the establishment of a dedicated tribunal or complaints platform for buyers affected by such issues. Reiterating the need for proper enforcement, he said: 'Laws are only as good as their enforcement.' 'We need a system that monitors projects, penalises rogue developers, and gives buyers timely updates and help when problems arise,' he said. Despite the support for the RPDA, Saravanan cautioned against hasty implementation. He stressed the importance of thorough consultation with all stakeholders – buyers, NGOs, legal experts and developers – to prevent unintended consequences or market instability. PMC Facilities & Real Estate chief executive officer Paul Puah Chee Keong lauded the RPDA, and called for the standardisation of assessment rates for commercial and residential developments. He highlighted a pressing issue where consumers are currently paying commercial rates for properties intended for residential or dwelling purposes. 'Even though it's a commercial title, many Soho, Sovo and service apartments are designed for dwelling purposes. 'It's only fair that these should fall under residential categories for taxes and utilities. The quit rent, assessment and utilities should be adjusted accordingly,' he said. Puah noted the RPDA's potential benefits in extending purchaser protections to commercial properties. 'If the new Act can extend protections similar to those in the Housing Development Act (HDA), it would be a significant improvement,' he said, referencing the HDA's existing safeguards like accrual accounts and transparent billing processes as 'sufficient.' He highlighted the importance of aligning the RPDA with the Strata Management Act to ensure seamless implementation by property management practitioners. 'The Act should clearly spell out management components for mixed developments. This includes service charges and other operational standards,' he said. Puah also stressed the necessity of clearly defining mixed developments within the RPDA. 'We need clarity to avoid confusion, as the market is already complicated by various terms like Soho, Sofo and Sovo. 'They are essentially the same,' he said, cautioning against being swayed by commercial interests that might manipulate definitions for profit. Strata Property Owners Association Selangor & KL advisor Law Hock Hua weighed in on the proposed Building Managers Act, which aims to tackle the widespread issue of inadequate property and building management. 'The chronic issue of poor property and building management is due to the quality and commitment of the building managers, not the quantity of licences,' he said. To address this, Law proposed property management exams at different levels, like the LCCI for accounting, to help employers assess candidates' academic qualifications. 'This structured approach would enhance the evaluation of managerial capabilities.' Secondly, he suggested that licensed property managers should place a bond when handling finances. 'Unlike unlicensed managers who must post a bond, licensed ones don't, which affects their commitment,' he said, pointing out the imbalance in the current system. Meanwhile, The Housing and Local Government Ministry had earlier said it is considering introducing a law to address abandoned commercial properties and to improve consumer rights protection, says its minister Nga Kor Ming. He said Sofo and Sovo properties are not covered under the current Housing Development (Control and Licensing) Act, which is limited to residential developments. 'Due to the absence of legal protection, buyers affected by abandoned projects under these categories often find themselves with no legal avenue for recourse. 'Following extensive engagements with industry professionals, NGOs and other stakeholders, the ministry has decided to study a new law known as the Real Property Development Act (RPDA) to resolve this issue,' said Nga in his speech at the StarProperty Real Estate Developers Awards 2025 on Thursday. Nga said the RPDA will include certain commercial developments which will safeguard the rights of property purchasers. Nga also said his ministry is mulling the Building Managers Act to address the chronic issue of poor property and building management. At present, he said there are only 594 firms licensed to practise management, serving 26,334 strata schemes or 2.91 million strata units in Malaysia. 'This highlights a serious gap where there are insufficient licensed firms to effectively manage all existing strata schemes. As a result, many property owners and tenants face significant challenges due to declining property values caused by poor property management,' he said. 'With the Building Managers Act, along with the soon-to-be tabled Urban Renewal Act, we are committed to addressing the root problem of aged, dilapidated urban buildings,' he added. As of March, the ministry, through the Taskforce on Sick and Abandoned Private Housing Projects, has successfully revived 1,044 private housing projects nationwide worth RM100.1bil in total, benefiting 124,539 homebuyers.
New Straits Times
11-05-2025
- Health
- New Straits Times
Bukit Aman: Parental complacency driving surge in youth vaping
KUALA LUMPUR: An increasing number of parents are turning a blind eye to their children's use of vape devices, dismissing them as harmless — a worrying trend that authorities say is contributing to the unchecked rise of vaping among young people. Bukit Aman Narcotics deputy director Senior Assistant Commissioner Muhamad Zaki Ashar said some parents had adopted a complacent attitude, failing to recognise the long-term consequences of vaping, particularly when it involves their own children. "There are parents who believe it's not dangerous. They see flavoured vapes — such as mango or coffee — and assume they're harmless because the smell isn't unpleasant. "That's where they're mistaken — the effects can be extremely harmful," he told Buletin Utama. Zaki also sounded the alarm over the growing availability of dangerous vape products, including those laced with drugs, being sold via social media platforms. "What's even more concerning is that drug-laced vape products are now being traded through apps like Telegram and Facebook. That's where these transactions are taking place. "We've carried out several arrests, and in many cases, the dealers are youths in their 20s," he said. On Feb 23, the Health Ministry disclosed that more than 100 investigation papers had been opened over the past two years involving vape products allegedly containing controlled substances. Deputy Health Minister Lukanisman Awang Sauni said that Parliament had passed the Control of Smoking Products for Public Health Act 2024 (Act 852), mandating that all cigarette and vape-related products must be registered and properly labelled. On May 2, the Federation of Malaysian Consumer Associations (Fomca) raised serious concerns about the expanding influence of the vaping industry, warning that companies are employing manipulative tactics that undermine Malaysia's public health efforts. According to Fomca's tobacco control coordinator, Muhammad Sha'ani Abdullah, these companies are actively shaping public perception to divert attention from the significant health risks their products pose, especially to young Malaysians. Sha'ani said that one of the most common tactics involved aggressive marketing, including bright, multicoloured packaging specifically designed to appeal to youth — particularly teenagers and children.
New Straits Times
02-05-2025
- Health
- New Straits Times
Fomca warns of vape industry's manipulative tactics undermining public health efforts
KUALA LUMPUR: The Federation of Malaysian Consumer Associations (Fomca) has raised serious concerns over the growing influence of the vape industry, warning that companies are employing manipulative tactics to undermine public health efforts in Malaysia. According to its tobacco control coordinator, Muhammad Sha'ani Abdullah, these companies are actively shaping public opinion to deflect attention from the significant health risks posed by their products, particularly to young Malaysians. "These companies are using deceptive strategies that exploit public sentiment to obstruct national health policies, placing Malaysians, especially our youth, at serious risk," he said. Sha'ani added that one of the most common tactics involves aggressive marketing strategies, including bright, multicoloured packaging designed to attract young people, particularly teenagers and children. "The vape sticks often come in various colours and sleek designs, turning them into fashionable, must-have accessories among the younger crowd," he said. Fomca also welcomed the recent disclosure by the police regarding the misuse of vape liquids as a medium for drug distribution. This follows revelations by Deputy Inspector-General of Police, Datuk Seri Ayob Khan Mydin Pitchay, who said drug syndicates are now infusing vape products with addictive substances to foster long-term dependency. "This alarming development confirms that vape products are not only a public health hazard but are now being used as a gateway to drug abuse—our nation's number one enemy," Sha'ani said. "If we fail to act swiftly, we risk losing an entire generation to dual addictions, nicotine and illicit drugs, marketed in bright, attractive packaging clearly aimed at children and teenagers." Citing recent analyses, Fomca said that over 90 per cent of vape product manufacturing and market share in Malaysia is now controlled by companies affiliated with global tobacco giants, corporations that have long been known to prioritise profit over public health. The organisation also urged the government, media, civil society, and the public not to be misled by the industry's rhetoric, which it claims masks harmful intent behind the guise of economic contribution. "Stakeholders must understand that these narratives serve to conceal a far more dangerous agenda that jeopardises national health and safety," said Sha'ani. Fomca called for immediate and decisive action from the government and enforcement agencies to address the escalating threat. "This must include a total ban on vape products that act as gateways to youth addiction, strict enforcement of pharmaceutical and narcotics laws on nicotine and similar substances, and firm action against manufacturers and distributors who deliberately target young people. "Vape products must be tightly regulated and must never be allowed to become tools of drug distribution, which poses a direct threat to our national security," Sha'ani added. Earlier, on April 19, Fomca secretary-general Saravanan Thambirajah urged state governments to ban vape sales through local councils, citing growing concern over the products' accessibility, flashy advertising that appeals to minors, and rising complaints from parents and educators about youth exposure to nicotine and synthetic drugs.
The Star
30-04-2025
- Business
- The Star
Egg subsidy: Consumer groups urge strict monitoring by authorities
KUALA LUMPUR: Consumer groups have urged the Domestic Trade and Cost of Living Ministry to ensure that no profiteering activities occur, following the government's decision to end the egg subsidy, by adopting a more proactive approach in monitoring retail egg prices nationwide. Federation of Malaysian Consumers Associations (Fomca) chief executive officer Dr T Saravanan said this includes strict monitoring of the Consumer Price Index (CPI), taking firm action against opportunistic price hikes, while ensuring that pricing mechanisms remain transparent and fair. "Fomca supports this policy direction, as a step towards a more sustainable and targeted subsidy system. "However, it must be accompanied by robust protections for the vulnerable groups, stable supply chains, and continuous market monitoring, to ensure that this move does not inadvertently burden consumers,' he said, when contacted by Bernama on Wednesday (April 30). The Agriculture and Food Security Ministry previously announced that the government will reduce the egg subsidy from RM0.10 to RM0.05 per egg effective Thursday (May 1), before fully withdrawing the subsidy on Aug 1. ALSO READ: Govt to end egg subsidy on Aug 1 The ministry also announced that price controls on eggs would be lifted, citing the industry's commitment to ensuring sufficient and stable egg production, following the stabilisation of production costs. To prevent panic buying or artificial shortages, which could drive up prices, Saravanan said that the government must ensure a consistent and sufficient supply of eggs in the market by working closely with producers, distributors, and retailers. He also stressed the importance of implementing proper safety nets, particularly for the B40 and vulnerable groups, who are likely to be more affected by price adjustments. Sharing a similar sentiment, Consumers' Association Penang (CAP) president Mohideen Abdul Kader emphasised that continuous monitoring of egg prices in the market is crucial to ensure that traders do not raise prices beyond the actual impact of the subsidy removal. "Without strict controls, consumers, especially those in the low-income group, will be the primary victims in the supply chain. The ministry must also be ready to take firm action against price manipulation and provide an efficient, responsive channel for consumer complaints,' he said. However, Mohideen suggested that egg price controls be temporarily maintained during the transition period after the subsidy ends to protect consumers from potential unreasonable price hikes. Meanwhile, small trader Nor Hayati Abd Karim, 43, hopes that the price of chicken eggs in the market will not increase suddenly, as they are one of the key ingredients she uses in making kuih-muih (savoury treats or snacks). Nor Hayati, who sells a variety of cookies and savoury treats for festive events, also hopes that the supply of chicken eggs in the market remains stable. Consumer Hendri Yanti Zainal Arifin, 41, also urged the government to closely monitor egg prices in the market to prevent sudden increases, which could burden consumers. "The government also needs to be proactive in increasing the supply of chicken eggs from local producers, as well as controlling the price of chicken feed, to manage production costs,' she said. Nurefnita Abdul Razak, 38, said that, as a consumer, she is trying to understand the government's decision to end the chicken egg subsidy, but hoped that the authorities, especially the Domestic Trade and Cost of Living Ministry, would continue to monitor traders and suppliers. – Bernama
