KUALA LUMPUR: The Federation of Malaysian Consumers Associations (Fomca) secretary-general Datuk Paul Selvaraj said subsidised cooking oil was meant for household use only, businesses have no grounds for complaining.
Paul said food traders were not the targeted group for cooking oil subsidy and they should not be complaining about the subsidy removal.
He said eatery owners came out and admitted that they have been purchasing cooking oil at a subsidised price, which is wrong in the first place.
“Eateries took advantage of the situation when the government was subsidising the price of cooking oil, which raised their profit margin.
“Any subsidised food is never meant for traders. Restaurant operators should not charge customers more,” he said.
On profiteers, he said the government is able to act on this by enforcing the Price Control and Price Control Anti-Profiteering Act 2011 (PCAP).
“There is a need to check on prices of cooking oil at retail outlets and food prices at eateries. The authority can determine whether the raise in food prices is reasonable,” he said.
Paul said the one-off BR1M assistance will not help cushion the burden of higher cost of living. Hence, the government should have a social safety net for those from the lower income bracket.
“Cooking oil should be continuously subsidised for deserving citizens. Government should have a broader perspective that they have a responsibility towards this group of lower income earners,” he said.
He added that those in this group would need the support of the government to “get out of the cycle”.
He suggested that the government can help ease their burden through affordable housing schemes, food stamps, free tuition classes, public transport support and entrepreneurship programmes to help raise their living standards.
Meanwhile, Malaysian Muslim Consumers Association (PPIM) chief activist Datuk Nadzim Johan said a blanket subsidy on cooking oil only benefitted unscrupulous people who sold subsidised cooking oil outside of the country.
“Subsidies should be given to the right people. To regulate the distribution of subsidy, we suggest that the government have people apply for it. This way, the subsidy can be provided in an organised manner,” Nadzim said.