KUALA LUMPUR: Food and beverage (F&B) operators are calling on the government to explain the implementation of the Subsidised Diesel Control System (SKDS).
This followed Prime Minister Datuk Seri Anwar Ibrahim's recent announcement on targeted rationalisation of diesel subsidies in the peninsula.
Malaysian Indian Restaurant Owners Association (Primas) deputy president C. Krishnan asked whether other businesses would still be eligible for subsidies, apart from public transport providers such as bus operators and taxi drivers, and goods transport operators.
"We're the ones providing services to B40 and M40 income earners working round-the-clock, who frequent cafes and small eateries for their meals.
"We appeal to the government to keep this in mind when implementing the diesel subsidy rationalisation," he said.
"As a sector that plays an important part in people's lives, any price increase in the supply chain would affect end-consumers."
He urged the government to take the F&B operators' cost management into consideration as logistics was an important part of their operations.
For instance, some food importers may no longer be eligible for diesel subsidies, hence it would affect F&B sector's costs, he said.
Having said that, the association would adopt a wait-and-see stance and avoid reacting in a rash manner.
"We laud the prime minister's move towards rationalisation as we cannot continue having the 'subsidy mindset'," he said.
Malaysian Muslim Restaurant Owners Association (Presma) president Datuk Jawahar Ali Taib Khan said the F&B sector was unique and not a "standalone" industry, with other small- and micro-industries relying on restaurants for their survival.
"For example, when a new restaurant opens, a landlord will be assured of rental income, a renovation contractor will get a job to set up the restaurant, and food, kitchen and utensil suppliers, as well as many others, will get business.
"In my opinion, the government should also give due consideration to our needs by engaging with us from time to time."
He said some food operators used their own transport to buy and supply goods, especially those in catering services.
Hence, he said the association wanted the government to come up with a mechanism to help them, raising concerns about rising operation costs that may cause a hike in food prices.
Anwar, in his address yesterday (May 21), said the government would continue providing diesel subsidies to traders who utilised diesel-based commercial vehicles.
They included 10 types of public transport vehicles, such as bus operators and taxis; and 23 types of goods transport vehicles under the SKDS.
Meanwhile, the government was also formulating the Progressive Wage Policy in an effort to increase the people's income.