RM225mil subsidy to ensure residents in interior, islands get essential goods

KOTA KINABALU: Six states have been allocated some RM225mil in funds under the Federal Government’s Essential Goods Distribution, LPG (liquefied natural gas) and Community Drumming Programme for this year, says Datuk Armizan Mohd Ali.

The Domestic Trade and Cost of Living Minister said the states were Sabah, Sarawak, Kelantan, Terengganu, Pahang and Kedah.

As for Sabah, he said, 654 points of sale (PoS) had been identified for implementation this year, with an estimated RM79.7mil allocated.

He said the programme was aimed at giving government subsidies through the appointment of transporter companies which transfer selected essential and controlled goods from the points of source to the points of sale in interior areas as well as the islands.

“The objective of the programme is to ensure residents at designated rural areas have access to essential items, particularly controlled goods at the same price as enjoyed by people in other areas,” he said, in a statement here on Sunday (Jan 7).

“At the same time, the programme can also help in creating stability on the supply of essential and controlled goods in the interior areas,” he added.

Armizan said the transport cost of these items to such locations would be borne by the government under the initiative.

He added the seven goods covered under this programme were white rice, refined white sugar, wheat flour, cooking oil, LPG tanks and, RON95 petrol and diesel.

He said this after inspecting the implementation of the programme in Sabah’s interior Tenom district.

The Minister said the government was also in the process of improving the programme’s implementation.

One of three improvements, Armizan said, involved carrying out an open tender system on the appointment of transporter companies during the middle of last year instead of a direct negotiation method previously.

“Studies are also being done to upgrade the existing mechanism on control and compliance which depended on manual reporting.

“The improvement will include pictorial reports and will take into consideration the development of a special system which takes into account internet connectivity in interior areas,” he said.

Armizan then added that the the Ministry would seek the proactive involvement of the local authority to propose the points of sale as well as beneficiaries to address leakages and ensure that the limited supplies reached the target group.

“The Ministry will work hard to implement these improvements to ensure the objective of this programme is realised and subsequently help the target group in line with subsidy policy under the Madani government,” Armizan said.