KOTA KINABALU: Sawit Kinabalu will produce the commodity meant for barter trade to reduce the smuggling of subsidized cooking oil to neighbouring countries.
“We know of subsidized cooking oil being smuggled. We do not subsidize foreigners, it is only for local end user so we have to segregate the item,” said Chief Minister Datuk Seri Shafie Apdal.
Shafie disclosed that two agencies have been identified to produce cooking oil namely Sawit Kinabalu and Benta Wawasan Sdn Bhd which will be producing cooking oil for local consumption.
Speaking to reporters after launching the Karnival Usahawan Desa (KUD) here on Saturday Shafie also said that barter traders from Indonesia and the Philippines must understand where to obtain their supply of non-subsidised goods in Sabah.
By re-opening the barter trade activity here next week they will know where and how to obtain the supply of non-subsidized goods like cooking oil and cooking gas, he said.
“With the relocation of Indonesia’s capital to Kalimantan, the impact will be huge in terms of economic development in this part of the area. We need to be prepared to cater to the demand. Maybe they will be doing the same,” he said adding that the preparations must be looked at in a holistic way.