WHILE it is agreeable that abolishing approved permits (AP) for food imports alone may not help reduce prices, UMNO said it was needed for a start.

“I agree that a study is needed on this and I believe DAP MP Tony Pua is drafting a working paper on how to resolve inflation issues.

“Once Pua is done with it, he can announce it. In the meantime, let the Government act first,” said UMNO information chief Shahril Hamdan.

Yesterday, DAP secretary general Anthony Loke said the Government’s move to abolish AP for food imports may not be enough to address escalating food prices and inflation.

He also said that the Government should discuss the matter and plan the matter thoroughly before making a decision so that the issue can be addressed in a wholesome manner.

“In our experience, high food prices are not only caused by the APs but also supply chain issues, which involve many layers of the process.

“Hence, I have tasked party policy adviser, Tony Pua to draft a working paper on the matter. Once it is completed, we will announce it,” Astro Awani reported the former minister as saying.

Touching on the matter, Shahril said while he agreed that abolishing APs may not mitigate the problems 100%, at least it could do something to reduce prices for the time being.

On the supply chain issue, the UMNO leader reminded Loke that removing APs for food import would unshackle the hold certain cartels have on the supply chain.

“Apart from abolishing APs, the Government had already embarked on other measures like providing subsidies and imposing ceiling price on certain goods.

“And this in on top of allocations made to strengthen the country’s food security measures,” Shahril mentioned.

Food crisis looming?

On related matter, UMNO supreme council member Datuk Seri Ahmad Shabery Cheek said the world is now plagued by food crisis due to COVID-19, rising oil prices and war in Ukraine.

“Russia and Ukraine are among the biggest exporters of wheat and sunflower edible oil. Russia also produces fertilisers like phosphate which is widely used for agriculture purposes.

“And the economic sanction imposed on Russia is affecting food supply throughout the world, including the country that imposed the sanction,” he stated.

The problem, Ahmad Shabery added, was compounded with drought in certain parts of Africa and Latin America which was affecting food supply as well.

“While there is no need to press the panic button now, the Government must take proactive measures to resolve the problem.

“Abolishing AP for food items will only help get supplies for certain food items alone such as cabbage, milk and coconuts.

“Anyhow, we must act fast before Malaysia ends up having a food crisis at hand,” the former minister cautioned. – May 21, 2022

https://focusmalaysia.my/rising-food-prices-action-needed-now-policy-paper-later-umno-tells-dap/