PBDSB concerned about effect of cancelling subsidies

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Andrew said PBDSB would like to point out also that there were 2.8 million B40 households earning below RM4,851 and an equal number of M40 families making less than RM10,970, and the two groups were already struggling with inflation that was outpacing official numbers.

KUCHING (June 30): Prime Minister Datuk Seri Ismail Sabri Yaakob’s decision to remove subsidies for farmers does not go down well with Parti Bansa Dayak Sarawak Baru (PBDSB).

PBDSB opines that while the government’s decision to cancel subsidies on goods cannot be changed, the government needs to substitute the loss of subsidies value with production incentives to farmers, growers and breeders (who are mainly the B40 group) in order to increase the volume of production of goods and raw materials, with the intention of meeting the demand of consumer and industrial markets, said its information chief Andrew Bugie Ipang.

“The net effect shall be a subsequent reduction in the cost of production. Prices will drop with increase in volume of production as the prices of goods are more affordable,” he said via a press statement yesterday.

He said PBDSB would like to point out also that there were 2.8 million B40 households earning below RM4,851 and an equal number of M40 families making less than RM10,970, and the two groups were already struggling with inflation that was outpacing official numbers.

Calling the government’s decision to end the subsidies an admission of its failure to regulate chicken prices, PBDSB said the move is sure to worsen the rising prices for B40 and M40 families for whom chicken meat is a major food item.

“Needless to say, the people are very concerned on the lifting and cancellation of the subsidies as announced recently which will come into effect from July this year.

“The impact of the cancellation of the subsidies is that prices of goods and essential items will increase substantially, some even more than double,” he said.

“PBDSB would like to highlight the plight of B40s and those who live in the rural areas in Sarawak. While acknowledging that the GPS government does help Sarawakians in things such as discount for house assessment, water and electricity bills, PBDSB questions how many Sarawakians have really benefited from those kind of assistance?”

PBDSB also asked why petrol prices in Sarawak are not given a discounted rate as well since Sarawak has Petros – Sarawak-owned petroleum company.

“Since Sarawak has its own Petros, it should set up and establish its own oil refinery on Sarawak soil. It is stupidity to ship out Sarawak crude oil to Malaya and get it processed in their oil refineries over there and then later on, ship back the petroleum products to Sarawak,” he said.

At one time, there was an oil refinery operated by Shell in Miri which was capable of meeting the demand for fuel in Sabah and Sarawak but later on was shut down and shifted to Port Dickson by Malayan politicians, he pointed out.

The Sarawak government should do something to help Sarawakians by giving or maintaining the status quo of subsidies enjoyed all these while by the people, he insisted.

Another alternative is for the Sarawak government to offer alternatives to cushion the impact of the cancellation of subsidies such as giving production incentives as the solution, which in the long run can benefit the local farmers, growers and breeders, he said.