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Saturday, April 4, 2020

Faced with subsidy requests, minister defends RM1.50 ceiling for three-ply masks

Malaysiakini

Defence Minister Ismail Sabri Yaakob has defended the current ceiling price of RM1.50 for three-ply face masks, stressing that it was set after taking into account all related costs for retailers and manufacturers.
"However appeals (for subsidy) can be made to the Finance Ministry because subsidies involve the Finance Ministry," said Ismail (photo), who is also coordinating senior minister for the security cluster, at the daily Covid-19 update press conference in Putrajaya.
"When we set the ceiling price, we have taken into account all related matters, including import costs.
"When we import, we have calculated the costs until it reached their shops...That is why we decided on RM1.50," he said.
Ismail said this when asked for a response to a call from the Malaysian Pharmaceutical Association, Sabah Pharmaceutical Association and Sarawak Pharmaceutical Association for the government to subsidise its members who had purchased their stock based on the initial announcement on March 21 that the ceiling price will be set at RM2
The three major associations said a large number of pharmacies had obtained their stock at a cost price of slightly lower than RM2, and their orders will only be received later this month.
Just nine days after the initial announcement, Putrajaya had announced a reduction of the ceiling price to RM1.50, and the associations urged the government to consider subsidising their costs or allowing pharmacies to clear their stock at an RM2 ceiling before lowering the price.
Aside from retailers, at least one
local manufacturer had reportedly expressed disappointment with the new RM1.50 ceiling price for face masks, claiming it will only benefit importers of the item.
Online portal Free Malaysia Today previously quoted Haminnuddin Hamid, chief executive of Ideal Healthcare Sdn Bhd, as saying that local manufacturers were disadvantaged because of higher import duties and costs for raw materials compared to finished products.
Meanwhile, Ismail said police yesterday conducted 26,202 spot checks, including on 4,174 premises, and arrested 413 individuals for defying the movement control order.
He noted that the arrests figures had recorded a 21.18 per cent decrease from 524 arrests on April 2.
Aside from ongoing police operations, Ismail said the Housing and Local Government Ministry through its agencies have conducted 426 sanitisation exercise in 11 states, comprising 170 police stations and 38,140 People's Housing Project units.
"For strata buildings, the ministry has also agreed that the building management can continue operations, with only two persons allowed to work," he said.
As of noon yesterday, the total number of positive Covid-19 cases recorded in Malaysia stands at 3,333, with a death toll of 53 persons and 827 recoveries.- Mkini

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