DPMM, MTEM urge gov't to break rice monopoly

CORONAVIRUS | The government has been urged to break monopolies, such as in the food and agriculture industry, when announcing its additional economic stimulus to face the Covid-19 crisis.

The Malay Chambers of Commerce Malaysia (DPMM) and Malay Economic Action Council (MTEM) said this includes monopolies on seeds, rice imports, and fertilisers.

The two groups said this will improve the country's food security, adding that a structural change would increase agricultural productivity to support internal production and imports which benefit the country.

"In fact, if a company needs to be nationalised, this is the time to do it for the good of the people," DPMM president Abd Halim Husin and MTEM CEO Ahmad Yazid Othman said in a joint statement.

They added that the government can't rely on Bernas to manage rice imports, and alluded to the rice shortage in 2008. Bernas had then claimed that the shortage was artificial. 

The Pakatan Harapan government, which was deposed late last month, had promised to break the Bernas' monopoly over rice imports in its manifesto.

However, former agriculture minister Salahuddin Ayub (above) said there was no rush to find a model to replace Bernas, as the company's contract with the government would expire in 2021. 

Besides rice imports, Bernas is also the buyer of last resort for rice farmers.

Meanwhile, besides breaking up monopolies, Halim and Yazid also proposed some other stimulus measures that the government can consider.

These include incentives businesses that make use of the internet to sell, and distribute their products; postponing punitive measures against SMEs; an increased Cost of Living Aid (BSH) for the B40; incentives for petty traders; and making the Social Welfare Department more efficient.

Prime Minister Muhyiddin Yassin said he will announce the additional stimulus tomorrow. - Mkini