KPDNHEP working to improve subsidy distribution mechanism, reduce leakage

TAWAU: The Domestic Trade and Consumer Affairs Ministry (KPDNHEP) is working to improve the subsidy distribution mechanism while looking into other alternatives to reduce leakage.

Its deputy minister Datuk Rosol Wahid said the ministry received information through social media that subsidised goods such as cooking gas cylinders were being sold in the neighbouring country.

“That should not have happened. Here, the 14-kg gas cylinders are sold for only RM26 each but there, the price could go up to RM70. The RM26 price is due to the subsidy provided by the government but this has also led to leakage.

“We are looking at all aspects and will think of ways to reduce leakage including providing the subsidy directly to the target group because currently, it is given directly to products.”

He said this to reporters after inspecting the effectiveness of the price standardisation programme as well as the distribution area of controlled and subsidised goods in Kampung Sungai Tongkang and Kampung Mentadak in Pulau Sebatik, near here, yesterday.

Rosol said the ministry was also looking into several options, such as using a hologram chip on gas cylinders to make it easier for the items to be detected.

“This year, the government allocated RM680 million for the price standardisation programme, cooking oil price stabilisation scheme and general purpose wheat flour subsidy.

“We need to see whether these options can be used for trial and error projects and whether they are effective or not. What is important is that the RM680 million spent by the government does not go to the wrong parties,” he said.