By Remy Majangkim
KOTA KINABALU: The Federal Government, under the Madani Government, is implementing a decisive cut to the cooking gas subsidy by transitioning to commercial-rate cooking gas for food operators.
The commercial rate is now RM 70 for a 14 kg gas cylinder, reflecting a 170% increase from the subsidised rate of RM 26.60. Get ready to spend more the next time you eat out.
The crucial question is whether the timing is right to implement such actions nationwide. This idea has been discussed for years and remains a contentious topic among policymakers.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali stated that the LPG subsidy costs the government RM3.4 billion.
Some may argue that this is a relatively small amount, considering Malaysia is the fifth largest producer of liquefied natural gas as of 2023.
A pertinent question arises: should these policies be extended to the Borneo States? Sarawak, renowned as the region’s primary producer of liquefied natural gas (LNG), plays a crucial role in the energy sector. In contrast, Sabah faces significant economic challenges, struggling to achieve sustainable growth and development.
In a recent interview with a food operator, it was highlighted that we may face an increase in food prices, with the cost of economy rice expected to rise from RM 8.00 to RM 12.80, marking an increase of 60%. This price hike is likely to lead to a significant drop in sales in the food and beverage sectors, resulting in more shops closing down and many employees being laid off.
Food operators are facing further hurdles due to a mandatory minimum wage of RM 1,700 for companies hiring more than four workers.
This challenge is compounded by the introduction of e-invoicing for the last batch coming next year. Which requires the additional purchase of a system aligned with LHDN.
As the Sabah election fever amplifies, many are questioning whether this critical move could signal the potential downfall of the Madani government.
Many believe that the timing of this ruling is a politically disastrous decision by the Federal Government and could significantly impact the performance of the Madani Coalition partners in the Sabah State election.
Sabahans are overwhelmed by the numerous rulings imposed in such a short time. We urge that these rulings not be extended to the Borneo States.
Many are still recovering from the impacts of the COVID-19 lockdown and lack basic public necessities, which adds to their daily challenges.
