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Micro and Small Traders in F&B Sector to Continue Using Subsidised LPG Cylinders, Confirms Armizan

Kota kinabalu: The Ministry of Domestic Trade and Cost of Living (KPDN) has assured that micro and small traders in the food and beverage sector can continue to utilise subsidised LPG cylinders as long as they offer “rakyat prices” (affordable prices) to consumers. Its Minister, Datuk Armizan Mohd Ali, stated that vendors offering reasonably priced services need not worry about losing access to LPG subsidies.

According to BERNAMA News Agency, this assurance comes as part of the considerations in amending the Supply Control Regulations (Amendment) 2021 (PPKB (Amendment) 2021). Engagement sessions to gather feedback on the proposal will commence tomorrow and continue until Op Gasak concludes on October 31. Unlike the previous regulation, which limited the use of subsidised LPG cylinders to a maximum of 42 kilograms at any time, the new amendment will consider the specific needs of micro and small traders in the F and B sector.

Armizan highlighted the importance of these amendments during a press conference, emphasizing the necessity to prevent subsidy leakages, particularly those related to smuggling and misappropriation. Earlier, he attended an engagement session with food and beverage traders’ associations in Sabah to collect their feedback on the proposed regulatory changes.

Feedback from these traders is essential for developing effective risk management strategies to prevent misuse of public subsidies. Armizan pointed out instances where large-scale purchases of subsidised LPG gas were resold, calling for robust control mechanisms to address such issues.

In addition to ensuring fair access to subsidies, the ministry has established a technical committee to review appropriate “rakyat prices” for consumers, using upcoming data from the Department of Statistics Malaysia as a guide.

Meanwhile, KPDN has called upon ice manufacturers and frozen food producers in Peninsular Malaysia to justify recent price changes. Armizan explained that the ministry seeks clarity on whether these changes are due to increased operating costs, raw material costs, or the Service Tax (SST). The ministry will apply the Price Control and Anti-Profiteering Act (AKHAP) where necessary, analyzing the factors and margins influencing these price adjustments.

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