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NST Online » Letters
2008/05/21
FOOD SECURITY: Restrict subsidies to the needy
A.I. , Kuala Lumpur
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Consumers checking out the varieties of rice for sale.
Consumers checking out the varieties of rice for sale.

I AM increasingly concerned over the problems of food security in our country.

I wholeheartedly agree with the government's short-term response of creating a stockpile to ensure the country will not be short of food, especially rice. This will ensure the country will not be held to ransom by other producing countries should we need to import from them.

I was however surprised to learn that the government had spent RM2.4 billion of the RM4 billion allocated for the stockpile.

This generally shows how expensive it has become to buy rice and other things from producer countries and how expensive it is, as a responsible government, to keep the nation happy and stable.

I was further shocked to learn the government will also spend approximately RM45 billion this year to continue subsidising petrol.
Add this to the stockpile budget, the government will spend approximately RM50 billion this year on subsidies alone. This does not include other subsidies such as education or fertilisers.

I think that these subsidies are untenable in the long term. Subsidies have been going on for so many years, resulting in billions of ringgit being spent. It has created the illusion that we are ok.

I agree that we need to subsidise the needy, and this includes the farmers, the less fortunate and so on.

However, why pay for rich Malaysians in their Mercedes and BMWs, or pay for the rich people who want to eat imported rice or the best local rice -- Super Special Tempatan 5 per cent (SST5).

There have been calls that all rice prices should be capped, not just the Super Tempatan 15 per cent (ST15).

The government has also been urged to pay millers for lost profits if the price is capped. I urge the government not to take this course of action.

We should continue to cap the ST15, being the main grade that many buy at present. And we should also increase production to ensure that this grade is easily available in the market.

Leave the other grades (SST10, SST5 and imported rice) to market forces.

I understand the concern that prices are going up every week for these grades, but this is also because ST15 is not available in the market.

Let those who want and can afford to buy the higher grades do so, but the government should efficiently spend to subsidise those who really need it by price-capping ST15 and ensuring availability of stock.

Sooner rather than later, demand for the higher grade will decline if prices go too high and if there is an alternative such as ST15.

Market forces dictate that these prices come down and stabilise at a more reasonable level.

However, enforcement is important to ensure that leakages and such do not happen.

The same goes for petrol.

The government must find alternatives to ensure that the subsidies go to those who really need it.

If the rich can afford to buy big expensive cars, they should be able to pay for the petrol.

We, the public, must also change our mindset. We must stop being dependant on the government for everything.

I am appalled by stories in the media of public demands for the government to get involved and solve their problems when it is, in fact, a private matter.

We need to be more independent and allow the government to do its job to manage and steer the country forward.

 



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