Malaysia acts to boost food supply, keep prices in check

But economists say more measures needed as man in the street faces rising household debt

- Leslie Lopez

Prime Minister Ismail Sabri Yaakob’s administration took a bold step this week to remove a controversial licensing system that governs imports of goods into Malaysia, in a bid to boost food supply and keep prices in check.

But economists warn that more countermeasures will be needed as ordinary Malaysians continue to face inflationary spikes and rising household debt.

The government said on Wednesday that approved permits (APs) for a range of food items have been scrapped with immediate effect, abandoning a decades-old system that has contributed to spikes in food prices while benefiting licence holders. The move came amid reports of shortages of essential items.

Supermarkets and grocery stores in Melaka and Terengganu have reported shortages in wheat flour, said local media, while Malaysians complain on social media about sharp price increases for items like cooking oil, eggs, chicken and vegetables.

Opposition politicians said they have received complaints from constituents in smaller towns in Negeri Sembilan and Perak of difficulties faced by provision shops in replenishing stocks for margarine and powdered milk.

Separately, a grouping of poultry players have warned that they plan to close their farms this weekend to protest against the government’s delay in subsidy payments. Prices for certain grades of whole chicken have more than doubled to RM25 (S$8).