MALAYSIA: Government denies boosting subsidy due to elections
Published: 01/27/2012, 12:10:15 PM
Malaysia's Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said the government has increased the sugar subsidy due to higher world prices and not because of an impending general election, according to Malaysia's The Star newspaper.
Sugar subsidy increased from MYR0.20 per kg to MYR0.54 per kg beginning early this month as the Government had no choice but to increase the sugar subsidy to prevent the rakyat from absorbing the higher costs, he said.
"World prices have increased a lot. This has nothing to do with the elections. This is about keeping costs at bay. If the sugar prices are increased, it will cost a domino effect on all food prices," he said after launching the Companies Commission of Malaysia's 'Best Business Practice Circular Achieving Corporate Integrity' at the CCM office.
Malaysia imports almost 99% of its sugar, he said.
Ismail said the extra cost could mean that the Government could be forced to pay almost double for sugar subsidy this year compared to last year.
"We have to pay MYR567 million (US$186.7 million) for sugar subsidy this year compared to MYR262.4 million last year due to the higher prices," he added.