SME group welcomes LPG permit relief but says retail slump persists [WATCH]

New Straits Times

06-06-2025

KUALA LUMPUR: The government's decision to exempt small traders from enforcement over the use of subsidised LPG cylinders offers some relief but does little to ease the ongoing retail slowdown, says the Small Medium Enterprise (SME) Association of Malaysia.
Its president Dr Chin Chee Seong said delays in policy clarity, coupled with mounting operational costs, are putting increased pressure on already vulnerable micro and small businesses.
"From day one, this exemption should have been made clear.
"Why wait until the issue escalates and becomes political? The government must act faster," said Chin during an interview with NST's Beyond the Headlines.
On Thursday, the Cabinet agreed that micro and small-scale food and beverage traders may continue using subsidised LPG cylinders without the need for a Scheduled Controlled Goods Permit (PBKB) until October.
The exemption remains in effect throughout the ongoing Op Gasak enforcement period and until amendments to the Control of Supplies (Amendment) Regulations 2021 are finalised.
While supporting the move, Dr Chin called for more structured engagement with stakeholders including associations representing hawkers, eateries, and retailers as well as the association.
"They should collect proper data from the ground before deciding on such regulations. If both sides understand the rationale — how much gas is used, for example — it can reduce friction and ensure smoother policy implementation," he said.
He added that poorly communicated decisions risk being politicised or misunderstood, even if they are not initially intended to target micro traders.
He highlighted the challenging economic environment facing small businesses and noted that retail and consumer spending have been declining since the Chinese New Year period.
This trend, he said, is expected to be reflected in upcoming reports by the Malaysia Retail Chain Association (MRCA).
"At a time when consumer spending is falling and the economy is still in recovery mode, adding more cost pressures or regulatory uncertainty will only make things worse for micro and small businesses," he added.
The government has said that findings from Ops Gasak, which targets the misuse of subsidised LPG by medium and large-scale industrial users, will serve as a key reference for reviewing the regulations.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said a technical committee, chaired by his ministry's secretary-general, will oversee the review and ensure that amendments reflect the specific needs of micro and small-scale food and beverage traders.
Dr Chin, however, noted that unless future regulatory changes are grounded in meaningful consultation with those most affected, such issues will continue to stir controversy and erode business confidence.