Malaysiakini
May 9, 11
Beginning tomorrow, sugar will cost RM2.30 per kilo, up RM0.20, announced the Domestic Trade and Consumer Affairs Ministry today.
This is the fourth time sugar prices had increased since Jan 1 last year when it was priced at RM1.65 per kilo.
Prior to that, sugar prices were maintained at RM1.45 for a long period. This marks a 58.6 percent increase in less than one-and-a-half years.
According to the Domestic Trade and Consumer Affairs Ministry, by increasing the price of sugar by RM0.20 tomorrow, the government stands to make a saving of RM116.6 million.
Ministry: Still cheapest in the region
Meanwhile, ministry secretary-general Mohd Zain Mohd Dom said that the RM0.20 increase was decided by the National Economic Action Council today.
He said that the government would review sugar prices every six months, adding that this was the first time the sugar price was increased this year. Sugar prices were increased by RM0.20 on Dec 4 last year.
Mohd Zain stressed that sugar prices will still be cheaper than regional neighbours such as Indonesia (RM3.80), Singapore (RM3.61), Thailand (RM2.31) and Phillipines (RM4.50).
He said that despite the savings, the government will still fork out RM283.4 million in sugar subsidies.
Petrol prices recently increased
This follows an increase an increase in RON97 grade petrol to RM2.90 per litre – a record high – just four days ago.
RON95 grade petrol, which was introduced in September 2009, is the most commonly used. Prime Minister Najib Abdul Razak promised RON95 would be maintained at RM1.90 per litre for now.
Last year, the government has announced that it plans to embark on a “subsidy rationalisation” exercise to reduce a burgeoning subsidy bill.
However, critics argue that such an exercise would only burden consumers and increase inflation while the government refuse to go on an austerity drive.
Critics said that the government has still failed to plug leakages in government-linked businesses and also failed to stamp out graft.