{"id":14069,"date":"2022-06-05T12:29:00","date_gmt":"2022-06-05T04:29:00","guid":{"rendered":"https:\/\/newmalaysiatimes.com\/?p=14069"},"modified":"2022-06-05T12:29:02","modified_gmt":"2022-06-05T04:29:02","slug":"ap-abolition-strengthens-food-security-prevents-price-hike-economist","status":"publish","type":"post","link":"https:\/\/newmalaysiatimes.com\/?p=14069","title":{"rendered":"AP abolition strengthens food security, prevents price hike — Economist"},"content":{"rendered":"\n

KUALA LUMPUR, June 5<\/strong> —\u00a0 The government\u2019s move to abolish approved permits (APs) for food imports is viewed as a short-term solution\u00a0as it allows\u00a0markets to operate freely to strengthen the country\u2019s food security and halt the price hike, an economist said.<\/p>\n\n\n\n

Malaysia University of Science and Technology (MUST) economics professor Dr Geoffrey Williams said the government is doing the right thing in stages — from price caps to market liberalisation — to ensure sufficient food supply in the country.<\/p>\n\n\n\n

\u201cWe should see the price pressure easing and this will benefit consumers in the short term.”<\/em><\/p>\n\n\n\n

\u201cThen, if the APs are not reimposed, we should see more long-term benefits in terms of lower prices, more product options and better quality,\u201d<\/em> he told Bernama during a recent interview.<\/p>\n\n\n\n

\"food\"<\/figure><\/div>\n\n\n\n

Recently, Prime Minister Datuk Seri Ismail Sabri Yaakob announced the government\u2019s decision to abolish APs for food products immediately to ensure that the country has an adequate food supply.<\/p>\n\n\n\n

Chicken is one of the food products that are currently in the spotlight due to the supply shortage.<\/p>\n\n\n\n

Williams, who is also the MUST provost for research and innovation, said the abolishment of the APs is an important step towards creating open, free and transparent trade arrangements.<\/p>\n\n\n\n

\u201cIt should be extended beyond food\u00a0towards abolishing all APs and import restrictions except for health and safety reasons.”<\/em><\/p>\n\n\n\n

\u201cThis will promote business and trade, reduce prices for consumers and reduce costs for the government —\u00a0a win-win-win solution — and will promote\u00a0investments, jobs and growth as well as help\u00a0to keep food prices down,\u201d<\/em> he added.<\/p>\n\n\n\n

According to the Department of Statistics Malaysia, over the last 10 years, Malaysia\u2019s food imports amounted to RM482.8 billion and exports at RM296 billion.<\/p>\n\n\n\n

In order to meet the domestic consumers\u2019 needs and demands, it said imports of food products, especially onions, dairy products, coffee, wheat flour, tea, shallots, potato and cooking oil are necessary.<\/p>\n\n\n\n

Meanwhile, Sunway University economics professor Dr Yeah Kim Leng said the food cartel members will have to face the open market competition following the abolishment of the APs.<\/p>\n\n\n\n

\u201cBut they will have an advantage if they have\u00a0already established\u00a0a distribution network and economy of scale in their operations,\u201d<\/em> he said.<\/p>\n\n\n\n

Yeah took note of the higher number of participants in the free market and expects the competition to result in increased market efficiency, price transparency and more choices for consumers. <\/p>\n\n\n\n

However, he said in the short term, as long as supplies are available, the key challenge is to ensure that the low-income households are able to cope with the rising food costs.<\/p>\n\n\n\n

Hence, he suggested targeted food subsidies as an appropriate policy response.<\/p>\n\n\n\n

Meanwhile, Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid suggested for the government to implement initiatives that promote agricultural activities.<\/p>\n\n\n\n

\u201cIdeally, we should grow our own crop since the country has vast fertile land and the weather is conducive for\u00a0agricultural products.”<\/em><\/p>\n\n\n\n

\u201cHowever, there are structural issues (that needs\u00a0to be addressed) such as the over-concentration of\u00a0cash crops like\u00a0oil palm, as well as factors\u00a0such as labour\u00a0and capital in order to resuscitate the agricultural sector holistically,\u201d<\/em> added Mohd Afzanizam.<\/p>\n\n\n\n

NMT<\/a> as reported by Bernama<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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