Malaysia Removes Subsidy of Wheat Flour, Expect Food Price to Jump Again - The Coverage
Malaysia

Malaysia Removes Subsidy of Wheat Flour, Expect Food Price to Jump Again

Our favourite Teh Tarik and Roti Canai combo may soon get an increase in price, as the subsidy for wheat flour has been ended by the Malaysian Government.

It appears that food prices will get a bump up again, now that the government has announced an end to the subsidy of 25-kg bag of wheat flour – a main ingredient in popular local food such as Roti Canai, Noodles and more.

According to a report by The Star, the subsidy of RM8.25 for the 25kg-bag of wheat flour are to be removed from today, moving the price up to RM42 per bag. An eatery owner, who was shown the revised price, calculated that Roti Canai will have to cost RM1.20 now instead of the typical RM1.00.

Roti Canai is a typical Malaysian breakfast, one that uses wheat flour as its main ingredient

Roti Canai is a typical Malaysian breakfast, one that uses wheat flour as its main ingredient

Millers who attended a meeting with the Domestic Trade, Cooperatives and Consumerism Ministry last week said they were informed about the subsidy removal then. Wholesalers are also believed to have received a circular on the revised prices for the 25kg-bag of flour for Peninsula Malaysia including Blue Key brand, which is now priced at RM42 without the subsidy.

However, typical Malaysian households will not feel the pinch yet, as the RM1.35 subsidy for the normal 1-kg wheat flour is still being maintained. It is local F&B businesses that will really feel the pinch.

Many have complained that the timing for subsidy removal was inappropriate and that the Government should seriously reconsider implementing it. Such a move might deal a huge blow to F&B businesses, as restaurant food will now cost more, and will definitely affect their businesses.

In George Town, Maliia Bakery (M) Sdn Bhd chief executive officer M. Kumaresan said the move would impact the business. “The removal of subsidy for wheat flour means a 30% increase in cost,” he said. [The Star]

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