Payment delays to repackers blamed for cooking oil shortages
Problems with payment to repackers is one of the reasons behind shortages in subsidised cooking oil in some parts of the country.
Minister of Domestic Trade, Cooperatives and Consumerism ( KPDNKK) Dato’ Seri Hamzah Zainudin said in the past, repackers of subsidised cooking oil were paid by another ministry.
However, he declined to mention the ministry but said the delay in payment had resulted in the supply shortage.
“Unfortunately, due to delay in payment made to the repackers, there are shortages in supply especially rural areas.
“We are sorry if there are still shortages up till now, but we will do our best to overcome this problem as soon as possible,” he told reporters after officiating at the entrepreneurship and consumerism seminar organised by KPDNKK here yesterday.
Hamzah said starting January this year, payments to all repackers are made by KPDNKK.
He said his ministry would do its best to prevent any more shortages in the near future.
He said KPDNKK had taken several drastic and concerted steps to ensure that the supply and circulation of subsidised cooking oil in the local market can be done systematically and effectively.
The cooking oil subsidy was removed for all package sizes except 1kg polybags beginning Nov 1.
On the seminar, he said it was organised to expose the participants to business and loan opportunities available at the various agencies under KPDNKK.
“In the seminar, the participants were told on how to grab the opportunities available in the market so they can expand their businesses through various means,” he said.
Some 600 participants, including 300 who were registered under e- Kasih, attended the one- day seminar. Also present was KPDNKK secretary-general Dato’ Sri Jamil Saleh and state KPDNKK director Datuk Stanley Tan.