PUTRAJAYA will cut red tape on business procedures and reduce the lengthy approval process to promote the ease of doing business, said Prime Minister Dr Mahathir Mohamad.

Noting that there are some 60 steps involved, he said foreign investors have been bogged down by the tedious approval processes.

“We want to reduce the process so we can expedite approval and, therefore, contribute to economic growth,” he said after chairing the Economic Action Council (EAC) meeting.

Chief Secretary to the Government Ismail Bakar has been tasked with reducing the number of processes and cut the number of agencies to expedite approval.

Acknowledging that economic growth has been slower than expected, EAC decided to lower administrative barriers that have burdened investors and the business community.

Using the construction sector as an example, Dr Mahathir said there have been cases where developers waited up to three years to secure approvals, and this led to an increase in development costs.

Another matter discussed by EAC is poverty among padi farmers.

The government has provided RM1.8 billion in subsidies for some 200,000 farmers, aimed at tackling poverty and addressing the issue of food security.

Dr Mahathir said it is too costly to continue with the subsidies, adding that padi farmers have become overly dependent on government aid.

Farmers are finding it hard to generate returns due to, among others, inefficient farming methods, low productivity levels and having plots that are too small, he said.

He said among Putrajaya’s initiatives to boost farmers’ income are doubling production from four tonnes per acre to eight tonnes, and diversifying cash crops.

The prime minister said the government will study methods used by farmers who are able to produce high crop yields.

He added that padi farmers in Kedah are able to harvest twice a year, compared with those in other states, who only harvest once.

Given this, crop diversification is essential, he said.

“We have identified things that we can do to help increase farmers’ income, which, at the same time, won’t add to consumers’ cost.

“The price of rice cannot increase for the sole reason of enriching padi farmers.”

On food imports, Dr Mahathir said: “We have been importing RM60 billion worth of food a year. We need to reduce this. We have been concentrating on rubber and oil palm without thinking about our food needs.”

He said no decision has been made on the roll-out of targeted fuel subsidies planned for next month.

“We’ve only gotten to the stage of gathering data. No real decision has been made.” – June 11, 2019.