Sabah to produce non-subsidised cooking oil for barter trade
KOTA KINABALU: The Sabah government will launch the barter trade system for non-subsidised cooking oil products with Indonesia and the Philippines next week, said Chief Minister Datuk Seri Mohd Shafie Apdal.
He said the move was aimed at curbing the smuggling of subsidised cooking oil that was still rampant in the state and to separate the sale of subsidised and non-subsidised cooking oil.
He said Sawit Kinabalu will produce cooking oil for the barter trade with the neighbouring countries.
“We know of subsidized cooking oil being smuggled. We do not subsidize foreigners, it is only for local end user so we have to segregate the item,” he said.
Shafie disclosed that two agencies have been identified to produce cooking oil, namely Sawit Kinabalu and Benta Wawasan Sdn Bhd which will be producing cooking oil for local consumption.
Speaking to reporters after launching the Karnival Usahawan Desa (Rural Entrepreneurs Carnival) here yesterday, Shafie said barter traders from Indonesia and the Philippines must understand where to obtain their supply of non-subsidised goods in Sabah.
By reviving the barter trade next week they will know where and how to obtain the supply of non-subsidized goods like cooking oil and cooking gas, he said.
“With the relocation of Indonesia’s capital to Kalimantan, the impact will be huge in terms of economic development in this part of the area.
“We need to be prepared to cater to the demand. Maybe they will be doing the same,” he said, adding that the preparations must be looked at in a holistic way. He said the move was also part of Malaysia’s preparedness through Sabah in dealing with administrative changes in neighbouring countries, particularly Indonesia, which was planning to move the capital from Jakarta to Kalimantan.
On the carnival here, Shafie said it was a great platform to help rural entrepreneurs to promote and market their products and to encourage more rural communities to venture into entrepreneurship as it was one of the key sectors that could contribute to the state and national socio-economic development.
On the development of basic infrastructure, Shafie said the state government would cooperate fully with the Federal government in ensuring that 95 per cent of the rural population enjoy paved roads, electricity supply and water efficiency by 2025.