Nanta to Chong: Lodge official report with KPDNHEP over claim of under-production by cooking oil repackers

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Dato Siri Alexander Nanta Linggi

KUCHING (April 13): The Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) has encouraged Stampin MP Chong Chieng Jen to immediately lodge an official report with the ministry and police regarding the alleged hanky-panky by some cooking oil repackers which led to a shortage of subsidised 1kg pack of cooking oil in Sarawak.

Its Minister Dato Sri Alexander Nanta Linggi said while his ministry has taken note on Chong’s claim regarding the shortage of 1kg pack of subsidised cooking oil in Sarawak, an official report from the latter would enable the KPDNHEP to conduct investigation and take immediate appropriate actions against the companies involved.

“The Ministry also appeals for cooperation from the public to report any irresponsible acts by any parties in handling subsidised cooking oil or other controlled items to us through our various platforms,” he said in a statement issued from Putrajaya today.

Nanta was responding to a Borneo Post online news report on Sunday in which Chong claimed there was a shortage of subsidised 1kg pack of cooking oil due to under-production by some repackers who have been receiving government subsidies.

Chong, who himself was former deputy minister of KPDNHEP, also said the government had allocated RM400 million for the cooking oil price stabilisation scheme this year alone to enable the needy across Malaysia to buy the subsidised cooking oil at RM2.50.

The Democratic Action Party (DAP) Sarawak chairman was also quoted as saying that when Pakatan Harapan was the government, the allocation was RM720 million in 2018 and RM600 million in 2019.

He had also claimed that some repackers had resorted to over-claiming of subsidies or under-production of subsidised cooking oil, such as claiming the subsidy amount for 1,500kg but only packed 1,000kg.

Nanta said the KPDNHEP enforcement division has always conducted comprehensive auditing to ensure the subsidised oil packs are received in all its network of distribution.

He revealed in a statement issued from Putrajaya today that based on record, there are 11 repackers under the Cooking Oil Stabilisation Scheme (COSS) in Sarawak involving total quota of 3,067 metric tonnes monthly.

“A check on our record found out that complaints received regarding cooking oil in the Sarawak Region from the year 2020 to March 31, 2021 were 25 in total. Apart from that, a total 4,221 checks were made on premises selling cooking oil until April 12 this year, and there were eight cases recorded against them this year,” he said.

Nanta explained that the quota of subsidised cooking oil for the whole country remains at 60,000 metric tonnes per month despite the 83 per cent increase in RBD Palm Olein from RM2,255 per tonne last year to RM4,122 per tonne in 2021.

“The quota equals to 60 million 1kg polybags for all Malaysians including the regions of Sarawak and Sabah.

“If the price of RBD Palm Olein continues to show upward trend, the government expects a rise in cost from RM400 million to RM1.8 billion. Therefore, our decision to retain the quota under the COSS programme shows our commitment to reduce the cost of living and maintain the people’s well being,” he said.

On another matter, Nanta refuted claims that the current government was not caring to the people by making those involved in the food and beverages (F&B) to fork out RM2.75 per kg for refined sugar.

“As for the issue of sugar, in principle, the selling price of domestic sugar is controlled at the maximum price of RM2.85/kg for coarse refined white sugar and  RM2.95/kg for refined white sugar for retail sale. The wholesale price f sugar for use in the food and beverage industry is set at RM2.77/kg for coarse refined white sugar and RM2.85/kg  for refined white sugar

He also said local food and beverage manufacturing companies as well as wholesalers can make application for a permit to import refined sugar at any time year-round.

He added eligible applications will be carefully considered by an Evaluation Committee represented by a number of Government agencies related including the Ministry of International Trade and Industry (MITI),  Malaysian Industrial Investment Authority (Mida) and the Royal Customs Department  Malaysia.

“The priority of issuing import permits is to any company food and beverage producers as well as wholesalers who meet the evaluation criteria which has been set.

“In terms of control over the approval of import permits, monitoring is ongoing also done against the recipient of the permit to import refined sugar to avoid  abuse and misconduct and enforcement action will be imposed to any party who abuses the permit to import refined sugar,” he said.