Domestic trade and cost of living deputy minister Fuziah Salleh said that the subsidy was included in the RM200 million allocation for the Payung Rahmah programme.
“For this general-purpose flour, we have set aside the budget, but there have been no claims, as no factory was willing to produce the flour. There has been no demand from the public either,” she said during the ministers’ question time in the Dewan Rakyat.
She was responding to a supplementary question from Mas Ermieyati Samsudin (PN-Masjid Tanah), who sought clarification on the domestic trade and cost of living ministry’s plans following the recent discontinuation of the wheat flour subsidy.
Meanwhile, Fuziah dismissed allegations that the distribution and production of subsidised goods were better before the 15th general election (GE15) in November 2022, compared with the situation post-GE15. She labelled such claims as false.
She cited an example of how in 2022, sugar production stood at 437,290 tonnes with a total distribution of 430,713 tonnes, while last year, sugar production recorded 489,451 tonnes with a total distribution of 471,241 tonnes.
“For subsidised cooking oil packets, the average monthly production in 2022 was 55,000 tonnes, while in 2023, the maximum production reached 60,000 tonnes.
“This shows an increase in the production (of subsidised goods) in 2023 over the previous year,” she said in reply to Mas Ermieyati’s original question about the ministry’s plan to ensure that the supply of subsidised essential goods, such as sugar, packet cooking oil and local rice recovers as before GE15.
In response to a supplementary question from Wee Ka Siong (BN-Ayer Hitam), Fuziah said the provision of RM42 million in financial incentives to sugar manufacturers is a temporary measure to ensure an ongoing supply.
She said it is not a long-term measure and not in the form of a subsidy but as a temporary mechanism before the government reaches a final decision about the price and production of sugar.
She said a solution must be reached through engagement with all industry stakeholders, including micro, small and medium traders (PMKS).
“We are most worried about the needs of small or micro industries such as those who sell kuih bahulu, air balang, apam balik, akok and so on. They use a lot of sugar.
“If it is domestic home consumption, it is about 2kg per household. If the price of sugar is not controlled, there will be an impact on inflation as well as the price of food, water and so on,” she said.