Roti canai prices set to rise after subsidy cut

Roti canai, a staple breakfast for many Malaysians, could be more expensive starting today after the government abolished subsidies for 25kg bags of wheat flour.

The Star reports that the subsidy was removed effective today, bringing up the price for 25kg bags of wheat flour from RM33.75 to RM42.

The English daily quoted a flour importer as saying that prices of food like roti canai and local kuih which use normal or general purpose flour could be affected by the subsidy removal.

However, the importer said the price of bread, biscuits and cakes, which use premium flour that is not subsidised, would not be affected.

Subsidies for the 1kg bags of flour bought by most households, however, will still be subsidised and sold at RM1.35.

It is understood that millers and wholesalers were informed of the subsidy removal last week.

However, The Star report does not state why the subsidy was removed.

Prime Minister Najib Abdul Razak's administration is embarking on cost-cutting measures, as his government struggles amidst economic downturn and the continued slump in world oil prices coupled with the drastic fall in the value of the ringgit. -Mkini