ABUSE of power and the existence of cartels are among the reasons for the spike in prices of food items, said Deputy Agriculture and Agro-based Industry Minister Sim Tze Tzin.

Malaysia’s import of food items, including those produced in Malaysia, stood at close to RM52 billion in 2017.

“The cost is high because there are issues of abuse of power and cartels, which have led to the increase in the price of food items,” Sim said in his speech at the National Farmers’ Organisation (Nafas) Jalinan Mesra Peladang 2019 event in Selayang this morning.

“We are looking for solutions so that prices of food items can be brought down,” he added.

Malaysia’s import of beef and buffalo meat amounted to RM2.4 billion, whereas fresh fish imports totalled RM2.1 billion, said Sim.

Other food items imported include mutton (RM792 million), chilli (RM244 million), cucumbers (RM12 million), cabbage (RM167 million) and other vegetables (RM462 million). 

Sim was responding to the issue of rising cost of food items, raised by Selayang MP William Leong, who was present at the event.

Citing the Malaysia Competition Commission’s (MyCC) Market Review on Food Sector under the Competition Act 2010 report, Leong had raised concerns about the abuse of approved permits (APs) and increasing monopolisation of the market. 

“For example, there are only seven countries in the world allowed to export beef to Malaysia, and from those seven countries, (products from) not more than 10 abattoirs are allowed,” he had said.

Leong added that a small number of companies controlled many abattoirs.

“Of those given the AP to import, two companies control about 50% of total (imports). They decide the prices.” 

He said wholesale prices had gone up by 80% while retail prices of meat had increased by 70% in the span of seven years from 2010 to 2017.

As a result, the prices of meat in Malaysia is higher than Singapore, Australia, Indonesia and other countries.

Touching on mackeral, or ikan kembung, he had said their prices have shot up more than 100% in the span of a decade as the market is controlled by a handful of companies, despite having 75 AP holders.

Earlier today, PKR president Anwar Ibrahim, who was at the same event, had told reporters that there was no room for monopolies under the new government. – November 10, 2019.