Rafizi weighs cooking oil subsidy cuts, government mulls alternatives to tackle leakages

KOTA BARU, Nov 17 — The government has discussed the issue of abolishing the packet cooking oil subsidy to address the problem of leakages, said Economy Minister Rafizi Ramli.

He said if the packet cooking oil subsidy is abolished, it could have certain risks as the government had spent millions of ringgit for the cooking oil subsidy.

“A similar situation will happen whether subsidised cooking oil is hard to find or is in Thailand.

“So, this matter (packet cooking oil) is under the regulation of the Ministry of Domestic Trade and Cost of Living (KPDN) and this issue has been discussed numerous times at the Cabinet level,” he said.

Rafizi said this at a media conference after the Economy Ministry’s 13th Malaysia Plan (13MP) engagement session with the Kelantan government at Kompleks Kota Darulnaim here today.

The Pandan Member of Parliament said the issue needs to await the decision by KPDN, which will present it to the Cabinet at a suitable time.

“Right now, the KPDN is going through the process of reviewing the best way to subsidise cooking oil without involving huge leakages,” he said.

Rafizi said that, at his ministry’s level, he needs to wait for the Cabinet presentation to see if there is a better method.

The media previously reported that the government was advised to abolish the packet cooking oil subsidy and replace it with financial aid to the targeted groups to address the issue of misappropriation and leakage.

Meanwhile, Rafizi said all national border development projects involving states in the north, Sabah and Sarawak are being scrutinised at his ministry’s level.

He said the government needs to create a development format and model first before any allocation is made.

“We need to develop a development format and model first, not only in Kelantan but all the bordering states. Only then can we determine the amount of allocation and how the border development will be implemented,” he said.

He said this when asked to comment on a statement by Kelantan Menteri Besar Datuk Mohd Nassuruddin Daud today that the proposed construction of a security and flood control wall along the Rantau Panjang-Sungai Golok border would cost an estimated RM450 million, including for land acquisition.

On November 14, the Thai government welcomed Kelantan’s proposal to the federal government for the construction of a security and flood control wall along the Sungai Golok-Rantau Panjang border.

Narathiwat Governor Trakul Thotham was reported as saying that the wall would be a significant step towards combating cross-border crimes.

On November 5, the Kelantan government said it would propose to the federal government to build a 100-kilometre wall along the state’s Malaysia-Thailand border.

This effort, it said, was very important to combat smuggling activities as well as to control floods. — Bernama