Restudy subsidy for commercial vehicles – Ministry

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LABUAN: Labuan Domestic Trade, Consumerism, Co-operatives Ministry (KPDNKK) deputy director Aslani Dabi yesterday said the 50 per cent subsidy being given to commercial vehicles must be restudied.

He said the government had been subsidizing the ferry tickets for commercial vehicles to transport goods from Menumbok to Labuan since January but KPDNKK Labuan found that the impact on the prices of goods here was very minimal.

“We were monitoring the situation but found that the subsidy did not give much effect to reduce the prices of products here. Many products here in terms of prices are being maintained even after the government had introduced the subsidy.

“We agree the subsidy be continued for passengers to travel between Labuan, Sabah and Sarawak by sea transportation. However, the relevant authority must review the subsidy being given to commercial vehicles,” he said.

The government has allocated RM17 million this year to subsidize sea transportation except private vehicles to travel to and from Labuan.

Aslani was commenting on complaints that KPDNKK was not doing their job to help reduce the prices of goods here by saying that the jurisdiction of the office was limited to control the price of only five items, namely sugar, cooking oil, flour, rice and liquefied petroleum gas, including diesel and RON 95 petrol.

“Most of the prices here, including at eateries, are controlled by supply and demand market forces. However, if you find a restaurant charging unreasonable price for their food you can lodge a complaint with us for further action.

“Now we are focusing to enhance awareness among the consumers by doing educational programmes. Awareness and education are powerful tools to empower the consumers.

“The government has also introduced 1Malaysia People’s Menu (MR1M) where you can enjoy breakfast at RM2.50 and lunch at RM5. There are around 21 restaurants here that have joined the programme,” he said.

Aslani advised the public to visit the KPDNKK website or come directly to Labuan office to lodge their report should they encounter any kind of manipulation from traders or any problem related with their rights as consumers.

Meanwhile, he disclosed that many other factors contributed to the higher cost of products here such as property rentals which were much higher than in Kota Kinabalu and at other places.

Another factor was the purchasing power of those working in the oil and gas sector who were willing to pay for products at higher prices.