KUALA LUMPUR: The government is expected to spend up to RM500 million in subsidies to standardise the prices of goods in Sabah, Sarawak and Labuan, the Dewan Rakyat heard today.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said during minister's question time that this included RM92.84 million to subsidise imported rice from October to December last year due to the limited supply of local rice in Sabah, Sarawak and Labuan.
"The government will also continue to subsidise certain foods in Sabah, Sarawak and Labuan, which can be seen through the RM96 million to subsidise eggs last year.
"Meanwhile, RM3.6 billion was also provided to allow the people and fishermen in Sabah, Sarawak and Labuan to have access to subsidised diesel at petrol stations following significant price disparity of goods between these regions," he said.
Armizan was replying to Lo Su Fui (PH-Tawau), who enquired about the government's plans to standardise prices of goods between Peninsular Malaysia and Sabah, Sarawak and Labuan.
Armizan added that the government had also established the Price Stabilisation Committee for Sabah, Sarawak and Labuan under the National Cost of Living Action Council to study the issues affecting the prices of goods and services between the regions.
The committee, he said, had also been tasked with formulating strategies and mechanisms for more sustainable price stabilisation in the three regions.
"Besides ministries and agencies, the committee also includes representatives from the governments of Sabah, Sarawak and Labuan.
"Through the committee, a comprehensive study on price stabilisation has been conducted in May by Universiti Malaysia Sabah and Universiti Malaysia Sarawak to identify issues relating to price disparities while providing recommendations and suggestions," he said.
He also said the government was committed to addressing the smuggling of essential goods, especially controlled and subsidised items, including in Sabah and Sarawak.
This involves monitoring and enforcement at various levels, including supply source locations within the country and border areas on land and at sea.
"Tackling Smuggling involves cooperation between various enforcement agencies. Besides the ministry, the responsibility is also borne by enforcement agencies operating at the border, each with their legal jurisdictions."