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LPG subsidies for ‘rakyat prices' traders
LPG subsidies for ‘rakyat prices' traders

Daily Express

time2 days ago

  • Business
  • Daily Express

LPG subsidies for ‘rakyat prices' traders

Published on: Tuesday, July 01, 2025 Published on: Tue, Jul 01, 2025 By: Crystal E Hermenegildus Text Size: Armizan also revealed that last year alone, the government spent RM3.4 billion on LPG subsidies, a figure he said is significant and equivalent to the cost of building 35 new schools. Kota Kinabalu: The Ministry of Domestic Trade and Cost of Living (KPDN) is committed to ensuring that subsidised liquefied petroleum gas (LPG) continues to benefit micro and small food and beverage (F&B) traders. Its Minister Datuk Armizan Mohd Ali said amendments to the Supply Control Regulations (PPKB) 2021 are being proposed to formally recognise the needs of micro and small F&B operators many of whom rely on LPG to run their daily operations. 'Food and beverage traders should not worry. As long as they offer reasonably priced food and services, they will continue to benefit from the LPG subsidy,' Armizan said this during a press conference at Sabah International Convention Centre (SICC), Monday. Under the current PPKB 2021, any commercial use of LPG exceeding 42kg requires a control goods permit, effectively limiting access to subsidised LPG for small businesses. The new amendment seeks to ease these restrictions and better reflect the operational realities of such traders. 'In practice, many eateries use more than 42kg at a time — some use five cylinders at once and also need to keep spare stock. The government understands this and is willing to allow usage beyond the current limit, but we must implement proper control mechanisms to prevent abuse,' said Armizan. He stressed that while domestic users and small F&B operators would remain eligible for the subsidy, the government cannot afford for subsidised LPG to be misused. 'We are not here to subsidise lifestyle costs. We are here to ease the cost of living for the people,' he said, citing examples of some establishments charging RM30 for fried rice or RM25 for chicken rice. 'That's not the rakyat's price. It's a lifestyle price.' Armizan also revealed that last year alone, the government spent RM3.4 billion on LPG subsidies, a figure he said is significant and equivalent to the cost of building 35 new schools. 'Is it right to let this money be used indiscriminately? The public needs to know that this isn't a small amount,' he said. To ensure fair implementation, Armizan said the Ministry would gather feedback from industry stakeholders and other relevant ministries, such as the Ministry of Entrepreneur Development and Cooperatives (KUSKOP) and the Ministry of Rural and Regional Development (KKDW), before finalising the amended regulation. A technical committee chaired by the Ministry's Secretary-General has also been formed to define and monitor the 'people's price' threshold and to design a subsidy control mechanism that ensures accountability. 'The LPG subsidy must be targeted, controlled and safeguarded. Our priority is to protect the rakyat, not to subsidise profit margins or lifestyle excesses,' Armizan said. Stakeholders unable to attend the engagement sessions are encouraged to submit their proposals and memoranda before the conclusion of the Ops Gasak enforcement campaign on October 31 2025. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia

Armizan: Micro and small F&B traders can keep using subsidised LPG if prices stay rakyat-friendly
Armizan: Micro and small F&B traders can keep using subsidised LPG if prices stay rakyat-friendly

Malay Mail

time2 days ago

  • Business
  • Malay Mail

Armizan: Micro and small F&B traders can keep using subsidised LPG if prices stay rakyat-friendly

KOTA KINABALU, June 30 — The Ministry of Domestic Trade and Cost of Living (KPDN) has assured that micro and small traders in the food and beverage sector can continue to utilise subsidized LPG cylinders as long as they offer 'rakyat prices' (affordable prices) to consumers. Its Minister, Datuk Armizan Mohd Ali, said that food and beverage vendors who offer services at reasonable prices need not worry, as they will continue to be guaranteed access to LPG subsidies. He stated that this is among the aspects considered in amending the Supply Control Regulations (Amendment) 2021 (PPKB (Amendment) 2021). Engagement sessions to gather feedback and views on the proposal will be held starting tomorrow until Op Gasak concludes on October 31. 'Unlike the PPKB (Amendment) 2021, which only allowed the use of subsidised LPG cylinders not exceeding 42 kilograms at any given time, the implemented amendment will take into account the needs of micro and small traders in the food and beverage sector. 'Besides recognising the needs of these traders, in this amendment, we will also look at control mechanisms in the context of ensuring that there are no leakages in this subsidy, especially related to smuggling and misappropriation,' he said during a press conference here today. Earlier, Armizan attended the PPKB (Amendment) 2021 Engagement Session involving food and beverage traders' associations in Sabah to gather their views and feedback on the proposed amendment to the regulations. Armizan said feedback from micro and small traders in the food and beverage sector was crucial for establishing risk management to prevent leakages and, subsequently, ensure that no parties take advantage of public subsidies. He revealed cases of large-scale purchases of subsidised LPG gas, with some being used at business premises while the remainder was resold at certain prices to parties involved in misappropriation. 'Therefore, we need to formulate control mechanisms related to the subsidised LPG cylinder issue,' he said, urging traders' associations to hold engagement sessions with their respective members and submit memorandums of proposal directly to the ministry. He added that the ministry has also established a technical committee to review appropriate 'rakyat prices' to be imposed on consumers, taking into account basic cost of living data to be released by the Department of Statistics Malaysia as a guide. Meanwhile, Armizan said that KPDN has summoned ice manufacturers and frozen food producers in Peninsular Malaysia to explain the basis for their recent price changes, effective tomorrow. Armizan was asked to comment on the viral issue involving both companies, which were reported to have increased their product prices on social media recently. 'What is the basis, whether it is due to increased operating cost, raw material cost, or due to SST (Service Tax)? If it is due to SST, we will ask them to provide the basis for applying the Price Control and Anti-Profiteering Act (AKHAP). 'We will also examine the details or components that caused them not only to change prices but also the margin or range of that increase,' he explained. — Bernama

Subsidised LPG cylinders for F&B micro traders continue with rakyat prices
Subsidised LPG cylinders for F&B micro traders continue with rakyat prices

The Sun

time2 days ago

  • Business
  • The Sun

Subsidised LPG cylinders for F&B micro traders continue with rakyat prices

KOTA KINABALU: Micro and small traders in the food and beverage sector will retain access to subsidised LPG cylinders as long as they maintain affordable prices for consumers, assured the Ministry of Domestic Trade and Cost of Living (KPDN). Datuk Armizan Mohd Ali, the Domestic Trade and Cost of Living Minister, clarified that vendors providing reasonably priced services need not worry about losing subsidies. This assurance comes as part of amendments to the Supply Control Regulations (Amendment) 2021 (PPKB (Amendment) 2021). Feedback sessions on the proposal will run from tomorrow until October 31, when Op Gasak concludes. 'Unlike the previous regulation, which restricted subsidised LPG cylinder use to 42kg at any time, the new amendment considers the needs of micro and small F&B traders,' Armizan said during a press conference. He added that the amendment also introduces stricter control mechanisms to prevent subsidy misuse, including smuggling and misappropriation. Earlier, Armizan met with Sabah F&B trader associations to gather input on the proposed changes. He stressed that feedback from small traders is vital for effective risk management to curb subsidy leaks. The minister highlighted cases where subsidised LPG was bought in bulk, with portions diverted for resale at higher prices. 'We must establish stronger controls,' he said, urging trader associations to submit proposals directly to the ministry. A technical committee will also review 'rakyat prices' for consumers, using cost-of-living data from the Department of Statistics Malaysia as a benchmark. Separately, Armizan addressed recent price hikes by ice manufacturers and frozen food producers in Peninsular Malaysia, demanding explanations for the increases. 'We will assess whether these changes comply with the Price Control and Anti-Profiteering Act,' he said.

LPG issue: 10 food and beverage bodies asked to gather feedback
LPG issue: 10 food and beverage bodies asked to gather feedback

Daily Express

time11-06-2025

  • Business
  • Daily Express

LPG issue: 10 food and beverage bodies asked to gather feedback

Published on: Wednesday, June 11, 2025 Published on: Wed, Jun 11, 2025 Text Size: 'Additionally, careful consideration is needed for business ownership status, quantity requirements, control and reporting mechanisms, monitoring and enforcement effectiveness, and strategies to curb leakages comprehensively,' Armizan said. PUTRAJAYA: A total of 10 food and beverage sales associations have been asked to gather feedback from their respective members and submit a memorandum of proposals regarding amendments to the Control of Supplies Regulations (PPKB) 2021. Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the memorandum should be submitted to the Technical Review Committee on Amendments, chaired by the Secretary-General of the Ministry of Domestic Trade and Cost of Living (KPDN). Advertisement He said an engagement session with the 10 associations was held Tuesday to scrutinise proposed amendments to restrictions on the use of subsidised liquefied petroleum gas (LPG) in trade and business, including considering the needs of micro and small-scale food and beverage vendors. 'Various recommendations and views have been put forward. Among the matters to be considered are the amendment parameters related to defining the business scale of the food and beverage sales involved. 'Additionally, careful consideration is needed for business ownership status, quantity requirements, control and reporting mechanisms, monitoring and enforcement effectiveness, and strategies to curb leakages comprehensively,' he said via his official Facebook page. The Cabinet Meeting on June 5 had agreed to KPDN's recommendation to amend the provisions of the PPKB gazetted in 2021, but details on several matters need to be finalised to ensure legal clarity. Also present at the engagement session was Rasah MP Cha Kee Chin, who is the chairman of the Special Select Committee on Domestic Trade, Entrepreneurship, Cost of Living and Agriculture. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia

LPG Permit Postponement: Proactive Measure Protecting Small Traders
LPG Permit Postponement: Proactive Measure Protecting Small Traders

Barnama

time06-06-2025

  • Business
  • Barnama

LPG Permit Postponement: Proactive Measure Protecting Small Traders

GENERAL KUALA LUMPUR, June 6 (Bernama) -- The Small and Medium Enterprises Association Malaysia (SAMENTA) has described the government's decision to postpone the permit requirement for the use of subsidised liquefied petroleum gas (LPG) cylinders as a timely move to protect local traders. Its president, Datuk William Ng said although these are minor administrative changes, they have a huge impact on business continuity and the people's cost of living. "Without these measures, thousands of small traders, particularly in the micro and non-formal sectors, could be more adversely affected. We are thankful for the government's proactive approach, which has managed to avoid a crisis in microenterprise business at the national level. "More importantly, these decisions send a clear and positive message that the government recognises the Small and Medium Enterprises (SMEs) as the country's main economic pillar, as well as being responsive and prepared to improve its policies based on feedback from the grassroots,' he said in a statement today. Yesterday, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said that micro and small-scale traders in the food and beverage sector may continue using subsidised liquefied petroleum gas (LPG) cylinders without a special permit until the amendments to the Control of Supplies Regulations (PPKB) 2021 are finalised in October. He also said that no legal action would be taken against this group of traders during the transition period. Commenting on the exemption from the e-invoice requirement and the extension of the e-invoice implementation invoice for SMEs, Ng said this would protect small traders, hawkers and family-owned businesses, which mostly do not have digital infrastructure, from the burden of compliance that could cause them to go out of business or operate informally. "We truly appreciate the government's firm decision to permanently exempt businesses which record annual revenues of below RM500,000 from the e-invoice obligation. "Similarly, the postponement of the implementation of e-invoices for businesses with revenues below RM5 million to Jan 1, 2026, provides much-needed space and time for SMEs to prepare, upskill and adapt. Such flexibility is crucial for the survival and growth of small businesses in an ever-changing economic landscape,' he said.

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