PUTRAJAYA: The government has been able to keep the subsidy system that allows people to purchase essential items at affordable prices, despite global uncertainties.

Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi said it was difficult to continue selling necessities at cheap prices amid the bleak global economic situation.

"There are a lot of contributing factors to this situation, among them the rising prices of raw materials around the world, the drop in currency, conflicts among producing countries and others.

"The people in the country are very fortunate that the government can maintain the subsidy system for some essential needs to ensure the well-being of the people is protected. 

"Various essential items and food can still be bought at affordable prices because of government intervention.

"For example, the subsidies of chicken, oil and sugar are provided by the government," he said at the ministry's monthly assembly and the launch of Malaysia Controlled Items and Subsidised Items logos today.

Also present were deputy minister Datuk Rosol Wahid and ministry secretary-general Datuk Azman Yusof.

The logos were designed by 27-year-old graphic designer Jesslyn Lai who emerged winner in a contest involving over 30 others.

Lai received RM2,000 in prize money.

Nanta said the logos were meant for consumers to differentiate between subsidised and controlled items as there were price differences on goods such as wheat flour, sugar and cooking oil.

The ministry, he added, was committed to ensuring the continuity of the subsidy programmes such as the Cooking Oil Price Stabilisation Scheme (COSS) which subsidises cooking oil in polybags to help the Bottom 40 group.

Aside from that, the Cooking Oil Price Control Mechanism Programme has also been extended to May 31 this year where the price of 5kg bottled cooking oil is capped under RM30.

Nanta said another initiative to ease the financial burden of the people was MyGrocer, which cuts out the involvement of middlemen in the supply chain and allows prices to be set more affordably.

"The prices of goods sold to consumers are five to 20 per cent lower than the market.

"Cooking needs such as fish, chicken, eggs and vegetables are sold in trucks that would go around low cost housing areas according to a schedule.

"So far, consumers from 56 People's Housing Programmes (PPR) and Public Housing (PA) in the Klang Valley have benefited from this initiative," said Nanta.