Sarawak rural folk suffer as prices soar once more


Desmond Davidson

Deputy Domestic Trade and Consumer Affairs Minister Chong Chieng Jen this week said the government has not scrapped the BN-era transport subsidy programme. – The Malaysian Insight file pic, March 14, 2019.

VILLAGERS of Long Banga, deep in Baram, are once again forking out an eye-watering RM45 for a 14kg tank of liquefied petroleum gas (LPG) after briefly enjoying the RM26.60 price paid by other Sarawakians.

Those who live an hour away from the Kenyah village, located near the Kalimantan border, have to pay even more – between RM60 and RM70.

Villager Usat Bilong told The Malaysian Insight that besides LPG, the prices of seven essential goods, namely diesel, petrol, sugar, rice, flour, cooking oil and cooking gas, which were subsidised under the previous Barisan Nasional government’s transport subsidy programme, have gone up by 40%.

He said a litre of diesel for 4x4 vehicles – a necessity in remote areas – now costs between RM3.30 and RM3.50.

In urban areas, it costs only RM2.18, he said.

“It’s difficult for us in rural areas. The price of everything has shot up.”

But villagers are tough, said Usat, and will “just have to soldier on to live”.

“We are suffering in silence. The situation is very bad, but what can we do?”

The Pakatan Harapan government has been accused of quietly discontinuing the transport subsidy programme in January, leading to the price hikes.

However, Deputy Domestic Trade and Consumer Affairs Minister Chong Chieng Jen on Tuesday said the government did not scrap the programme, and has allocated RM140 million to subsidise the transport of the seven essential items to rural areas nationwide, with 90% of the allocation going to Sarawak.

The Sarawak PH chairman said the programme is merely delayed because “the PH government has improvised the procurement process, from the previous direct negotiation method to open tender”.

Chong said the delay is to allow the ministry to sort out issues concerning contracts inherited from BN.

He said the ministry found that some transport agencies appointed under the previous administration do not meet expectations.

“Furthermore, the prices offered are also not competitive, resulting in the government paying more for less service.”

A litre of diesel for 4x4 vehicles – a necessity in remote areas – now costs between RM3.30 and RM3.50 for villagers in rural Sarawak, compared with the RM2.18 price tag in urban areas. – The Malaysian Insight file pic, March 14, 2019.

When the ministry started the open tender process, “more than 3,000 contract transporters submitted bids”, said Chong.

“The ministry is now in the selection process, and appointments will be made in due course, and will be based on merit. We are at the final stage of the selection process.

“If everything goes smoothly, by April 1, the transport subsidy programme will be in full swing.”

Usat said he hopes it is not an April’s Fool joke.

Telang Usan assemblyman Dennis Ngau blames the steady increase in the prices of goods and services in Baram on the “slow decision” to appoint transport agencies.

“People in my constituency of Telang Usan and those in Mulu are still waiting for the prices of goods and services to go down, as promised by PH in its election manifesto.

“Since GST (goods and services tax) was abolished last year, the prices of goods have increased instead of decreased.”

Ngau said even though villagers in Baram and other rural areas are suffering, the PH government’s move to improve the delivery system is laudable.

“I’m surprised to know that more than 3,000 contract transporters submitted bids.”

He said he hopes they are from rural areas themselves, or at least, “those who really know the conditions in these areas”.

“I must forewarn the ministry… while the new government is trying to prove it is more open by introducing the tender process, in such circumstances, it will have no choice but to accept the lowest-priced bid.”

He said this could have negative repercussions, such as contractors finding themselves in financial difficulties or experiencing a breakdown in operations.

Chong said the ministry will make up for the transport subsidy programme’s delay by increasing supply, citing LPG as an example.

Last year, the allocation was seven LPG tanks per family, and this will be upped to 12 tanks this year, he said, adding that the previous allocation is insufficient to last families a whole year. – March 14, 2019.


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