KUCHING, Nov 17: The Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) is conducting a ‘Study to Optimise Subsidies’ to ensure equal and sufficient distribution of subsidised cooking oil to target groups.
KPDNHEP minister Dato Sri Alexander Nanta Linggi said the study started in 2021 and is expected to be completed in 2022.
“The study will evaluate existing subsidy programmes in terms of effectiveness including the effectiveness of delivery, implementation mechanism, degree of leakage and costs involved.
“Existing programmes will be refined while new mechanisms will be proposed as measures to increase the effectiveness of subsidy delivery to target groups,” he said.
The optimisation study is also vital, he added, in view of the soaring price of crude palm oil which have reached RM5,051 per metric tonne these days.
With the ever-increasing market price, the implementation of the ministry’s Cooking Oil Price Stabilisation Scheme (COSS) will inevitably be affected.
This will thus be a measure by the government to ensure there is an adequate supply of cooking oil in the market and reasonable price that does not burden consumers, especially the B40 group.
Besides COSS, studies are also being carried out to optimise other subsidy programmes such as the General Use Flour Subsidy Programme, Essential Goods Distribution Programme and Sabah, Sarawak and Labuan Price Standardisation Programme.
“Other than conducting studies, KPDNHEP has also streamlined its subsidy distribution mechanism to cater for the rural community as well.
“For example, the General Use Flour Subsidy Programme was improved in collaboration with the Department Of Orang Asli Development to ensure distribution of subsidised wheat flour quotas not only in urban and rural areas, but also to settlements in remote areas,” said Nanta in Parliament today.
He was responding to question by Betong MP Datuk Robert Lawson Chuat who enquired about the effects on COSS and the government’s plans if the price of crude palm oil continues to soar.
Nanta said adding on that the Distribution of Essential Goods, Liquefied Petroleum Gas (LPG) and Community Drumming programme is also continued to ensure that rural communities are able to enjoy the same prices as in the cities without additional transportation and distribution costs. — DayakDaily
