Monday, May 20, 2013

Government to maintain food subsidies

KUALA LUMPUR: The Domestic Trade, Co-operatives and Consumerism Ministry will continue subsidising food and general goods to deal with the increasing cost of living.

Source from (The Star Online): http://thestar.com.my/news/story.asp?file=/2013/5/19/nation/13131949&sec=nation
Published: May 20, 2013

Datuk Hasan Malek
  Datuk Hasan Malek

Its minister Datuk Hasan Malek said the Government would maintain subsidies and increase the number of Kedai Rakyat 1Malaysia (KR1M) and Menu Rakyat 1Malaysia to compensate for the increasing consumer price index (CPI), which rose by 1.6% in the first three months of this year.

The Statistics Department reported that the increase in the CPI was primarily driven by the index for food and non-alcoholic beverages for the January-March period, which showed an increase of 2.9% compared with the same period last year. The ministry has been allocated RM103.5mil to open more KR1M stores, with 90 new locations planned 57 of which would be opened in Sabah and Sarawak.

“I urge retailers to maintain their prices. Don't just think of your own profits, national interest comes first,” Hasan said after launching Buy Malaysia Products Expo 2013 at the Kuala Lumpur Convention Centre.

He also told the Opposition to prove claims that there had been a price increase in essential items after the general election.

He said efforts to encourage sales of domestic products would also help normalise the costs of everyday goods and have a multiplying effect in improving the local economy. Hasan also said the ministry did not approve of a call by an Islamic NGO to boycott Malaysian Chinese shops and companies.

“The Government is concerned for all communities. Boycotting one group would not be in the interest of anyone,” he added.

It was reported that the Muslim Consumers Association of Malaysia urged the Malay community to boycott Chinese shops and companies, claiming that those companies had funded the Opposition's campaign in the 13th general election.

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