PAKATAN Harapan (PH) is mitigating the rising cost of living in the states it governs via rent discounts, subsidised chicken and direct aid to farmers and fishermen while criticising the federal government for failing to effectively respond to inflation, Selangor and Penang assemblymen said.

However, there is a limit to what the PH government can do with its few resources , they said. It is Putrajaya who sets the ceiling prices for essential food items and subsidies for fuel.

In Selangor, the PKR-led government has set the price of chicken at RM8 per kg under the Ehsan Food Prices Intervention Programme, which cost the state almost RM1 million, Hulu Selangor MP Hasanuddin Mohd Yunus told The Malaysian Insight.

The state government has also reduced the rent in buildings it owns to help traders. 

“These programmes started in December and are still ongoing. The price of chicken is even lower than the price set by the federal government at RM8.90 per kg.

“However, we cannot supply the RM8 per kg chicken to every district in Selangor.  We have limited resources but we are trying to help,” Hasanuddin said.

Hasanuddin is on the PH committee for cost of living. The committee has urged Putrajaya to maintain the ceiling prices for chicken and eggs as well as subsidies for bottled cooking oil.

It also called for more subsidies for chicken farmers and entrepreneurs to ensure supply. 

This follows Domestic Trade and Consumer Affairs Minister Alexander Nanta Linggi’s remarks on June 21 that the ceiling price for chicken will be removed come July 1. He also announced the end of the ceiling prices for 2kg, 3kg and 5kg bottles of palm oil. 

It sparked a backlash that led to Prime Minister Ismail Sabri Yaakob reversing the decision on chicken prices, saying they will not be floated and that a new ceiling price will soon be announced.

Ceiling prices for bottled cooking oil will still end on July 1. The government will only subsidise the price of palm oil sold in 1kg poly bags.

In Penang, exco Dr Norlela Ariffin told The Malaysian Insight that the DAP-led government has been assisting farmers and fishermen affected by rising costs.

The exco for agro-technology, food safety, rural development and health said this was done through “empowerment” programmes, which are also open to the poor.

“Farmers are given assistance to produce their own animal feed so that they don’t have to depend on imports. We also have subsidies for pesticides to cover as much as 50% (of costs).”

Norlela added there was a plan to introduce mangrove crabs to clam farmers in Penang.

“We are limited in resources as a state government, but we have tried to lift the economy of Penang people,” said Norlela.

Penang exco Abdul Halim Hussain, who is in charge of domestic and international trade, consumer affairs and entrepreneurship development, said the state has helped the poor directly.

“We at the state level have tried our best to help the people and have come up with our own initiatives using state money. Putrajaya has got to do the same to resolve the crisis,” he said.

Pasir Gudang MP Hassan Karim of PKR, who is also on the cost of living committee, said states do not have the power to act against profiteering.

“State governments have limited resources. Putrajaya can give bigger subsidies while the state government can only give a little. 

“What is important is that the federal government must not scrap the subsidies but give more,” Hassan said.

He urged the federal government to address subsidy leakages for RON95 petrol, the price of which is capped at RM2.05.

Selangor’s Hasanuddin, meanwhile, said inter-ministerial cooperation is needed to solve the food price crisis.

“We need to focus on locally produced animal feed and the government must assist local farmers and breeders to produce bran and grain.

“What is needed is inter-ministerial cooperation to help these sectors and to help the whole chain, farmers, factories sellers, so that we can solve the problem as a whole.”

“Industry players have told us that there is no coordination. One ministry passes the buck to another ministry instead of looking for a solution.” – June 29, 2022.