Economist backs govt's LPG rule enforcement to optimise subsidies
All restaurants, cafés and hawker stalls are required by law to use commercial-grade 14kg LPG cylinders, which cost RM70 each. (AP pic)
PETALING JAYA : An economist has expressed support for the government's decision to enforce existing cooking gas cylinder regulations, saying it is necessary to prevent the misuse of subsidised liquefied petroleum gas (LPG) and ensure they reach their intended beneficiaries.
Sunway University's Yeah Kim Leng said the move would allow Putrajaya to reduce the RM3.4 billion it spends on LPG subsidies annually, allowing the savings to be reallocated to development programmes.
'The subsidy amount is sizeable and better used for health, education and other welfare development programmes. This should be communicated well, in line with the country's subsidy rationalisation reforms,' he told FMT.
Yeah, however, said traders, especially small vendors and hawkers, should be allowed a grace period to help them adjust to the changes.
Yeah Kim Leng.
'Rather than forceful enforcement, a more friendly and compassionate approach—such as warnings for first-time offenders and closer monitoring—would be desirable and less disruptive to small traders and hawkers,' he said.
Last month, the domestic trade and cost of living ministry launched Ops Gasak in an effort to curb the misuse of subsidised LPG, particularly by industrial users and large-scale businesses.
Businesses—including restaurants and cafés—are required to use commercial-grade 14kg LPG cylinders, costing RM70 each, and not subsidised household cylinders priced at RM26.
Those that use or store more than 42kg, or three cylinders, must also obtain a scheduled controlled goods permit.
Although introduced in 2021, the rule is only now being strictly enforced with the ultimate goal of reducing subsidy leakages.
Domestic trade and cost of living minister Armizan Mohd Ali said the initiative aims to curb the misuse of subsidised LPG by ineligible sectors and prevent the illegal transfer of gas from subsidised cylinders to non-subsidised ones for resale at a profit.
He also said enforcement officers were presently prioritising advocacy over punitive measures, and that no compounds will be issued or seizures conducted at this stage.
Yeah said many traders may not even be aware of the regulations in question, and suggested that the government set a grace period before fully enforcing the law.
He said small businesses, especially hawkers, may not be familiar with the law.
'Given that many small traders and hawkers are updated through word of mouth, a grace period coupled with well-crafted public communication and education programmes would be helpful in reducing misuse of subsidised gas.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
33 minutes ago
- Free Malaysia Today
Consumer body cuts ties with deregistered Ikhlas
Nadzim Johan, chief activist of PPIM, said the association did not want to work with illegal NGOs. PETALING JAYA : A consumer body has said it would no longer work with Ikhlas, a society for small-time entrepreneurs, after learning it had been deregistered three years ago. The Malaysian Muslim Consumers Association (PPIM) said it had no idea that Ikhlas had been deregistered when jointly presenting a memorandum to the home ministry recently, according to the Scoop website. 'We do not want the public to question our credibility for joining forces with an NGO that has been deregistered,' PPIM chief activist Nadzim Johan was quoted as saying. 'Nor do we want to work with illegal NGOs. There are other NGOs whom we could work with.' On Friday, the Registrar of Societies confirmed that Ikhlas was deregistered in November 2022 for failing to submit annual financial statements. The society, which had listed former prime minister Dr Mahathir Mohamad as its patron, was led by Ridzuan Abdullah, who is also on the secretariat of Gabungan Ikhlas Malaysia, a group which issued statements in early January on the addendum linked to Najib Razak. Ridzuan recently claimed that the NGO did not receive any notice about its deregistration, and also stated that the Covid-19 pandemic made it difficult for Ikhlas to hold meetings and submit its financial statements. Two years ago, it was reported that Ridzuan had been charged with 12 counts of filing fraudulent claims totalling RM378,000 to the Social Security Organisation to obtain incentives from the Penjana Kerjaya 2.0 Programme.
Free Malaysia Today
3 hours ago
- Free Malaysia Today
‘Sabahan No 1' not an empty slogan, says Salleh
Sabah BN treasurer Salleh Said Keruak said the state party moved in tandem with the federal unity government. (Bernama pic) PETALING JAYA : 'Sabahan No 1' is not an empty slogan for Barisan Nasional as it represents the party's struggle to give priority to the interests of the people of Sabah, according to Sabah BN treasurer Salleh Said Keruak. Speaking to Umno members in Benoni, he said BN relied on hard work and perseverance, rather than populist sentiment or material inducements, with 'not just promises, but actual delivery'. Salleh, who is state assemblyman for Usukan, said: 'We don't come with money, but with spirit and hard work.' His remarks come a week after Sabah chief minister Hajiji Noor reiterated his stance that local parties should lead and dominate Sabah politics. While he acknowledged cooperation with national parties, Hajiji maintained that ultimate political control should remain in the hands of Sabahans themselves. Salleh, who has previously asserted that the struggle for the state's rights is not the domain of any one party but of all Sabahans, said Sabah BN moved in tandem with the federal unity coalition government, to ensure Sabah had a decisive voice in national affairs. Last week, Sabah BN chairman Bung Moktar Radin called for a straight contest between BN and the ruling coalition GRS at the next state elections. He said cooperation could be considered after the elections. GRS deputy secretary-general Armizan Mohd Ali said that Bung's proposal was reasonable and should be honoured as the only way to resolve the conflict between the two coalition parties.
Free Malaysia Today
3 hours ago
- Free Malaysia Today
No coalition partner should act like ‘big brother', says Salleh
Sabah BN treasurer Salleh Said Keruak, a former chief minister, said the new formula was about 'political accommodation' and not merely power-sharing. (Bernama pic) PETALING JAYA : No party in Barisan Nasional should act like a 'big brother', Sabah BN treasurer Salleh Said Keruak said today, revealing that the coalition was looking into a new formula for power-sharing in the state government. Salleh, a former chief minister, said Sabah BN was exploring a new formula that would ensure fair political representation among the state's diverse communities, the New Straits Times reported. The new formula was not just about power-sharing, but 'political accommodation,' he was quoted as saying. 'We feel that in any coalition, no party should act like a 'big brother'. We need a formula that can satisfy everyone.' When asked what formula he had in mind, Salleh said Sabah BN would use past models as a guide. He said previously Bumiputeras were divided into Muslims and non-Muslims. 'We should discuss (the matter) so that we can consider Bumiputera to mean both Muslim Bumiputera and non-Muslim Bumiputera.' Salleh also said BN was preparing a draft commitment for Sabahans to tackle the state's fundamental issues, which he personally pledged to lead.
