KUALA LUMPUR: The provision of RM42 million in financial incentives to sugar manufacturers which is currently being implemented is a temporary measure to ensure the continuous supply of the essential item.
Deputy Minister of Domestic Trade and Cost of Living Fuziah Salleh said it is not a long-term measure and not in the form of a subsidy but as a temporary mechanism before the government reaches the best and final decision regarding the price and production of sugar.
She said a solution related to the matter must be reached through engagement with all parties in the industry including micro, small and medium traders (PMKS).
“We are most worried not over domestic consumption but the need of small or micro industries such as those who sell kuih bahulu, air balang, apam balik, akok and so on. These operators use a lot of sugar.
“If it is domestic home consumption, it is about two kg per household. So, if the price of sugar is not controlled, there will be an impact on inflation as well as on other chains such as the price of food, water and so on (will increase),“ he said during a question and answer session in the Dewan Rakyat today.
ALSO READ: Direction of local sugar industry depends on global supply- Armizan
She was replying to a supplementary question from Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam) who asked about the steps taken by the Ministry of Domestic Trade and Cost of Living (KPDN) in ensuring that the RM42 million financial incentives to sugar manufacturers can be enjoyed by them.
Meanwhile, Fuziah said the price of goods, especially raw materials, depends on factors such as climate change, geopolitics such as war or the policies of producing countries such as India which restrict the export of onions and rice.
For the price control mechanism and the supply of goods, KPDN uses the Price Control and Anti Profiteering Act 2011 to monitor the prices charged by traders as well as the Control of Suppliesl Act 1961 to ensure there are no clandestine activities, he said.
Apart from that, she said, KPDN also implements the Festival Season Maximum Price Scheme which uses a price control mechanism during the festive season to ensure supply (price) does not increase when demand increases.
