Fomca praises PM for scrapping APs, says it will stabilise food prices
SHAH ALAM - One of the harshest critics of approved permits (AP) for food has praised the prime minister for finally scrapping it, saying it will stablise food prices and open more opportunities for local traders.
Federation of Malaysian Consumer Associations (Fomca) president Datuk Dr Marimuthu Nadason said more participation from local traders will ensure adequate supplies.
"Government has issued APs for certain people. Now finally everyone will have the same opportunity," he told Sinar Harian.
Prime Minister Datuk Seri Ismail Sabri Yaakob on Wednesday said from immediate effect APs will no longer be needed to bring food into the country.
Commenting further, Marimuthu said Fomca is thankful to Ismail Sabri for his understanding of removing the APs. this comes as Fomca for years has been against APs for food which saw prices of food to rise.
“Food shortages not only occur in this country but also in most countries around the world due to several factors.
“One of the factors is that the value of our ringgit is still declining.
“Secondly, all business is conducted in dollars. The value of the dollar is increasing now, so we have to understand,” he said.
In the meantime, Marimuthu said the government needs to ensure that there is no sudden increase in food prices that can affect the public.
"My hope is, with the abolition of this AP, prices can be stabilised and the increase in price should not happen as being experienced in some countries," he added.
However, Universiti Putra Malaysia Agricultural and Food Policy Studies Institute expert Professor Datin Paduka Fatimah Mohamed Arshad said food prices would still depend on global supply and demand.
"The price of goods will go down if the global market situation is in a good condition and prices will go up if there is a conflict," she told Sinar Harian.
Commenting further, Fatimah said, by eliminating the AP, it will provide healthier business competition and younger generation could also seize the opportunity.
However, she said the government may not need to abolish all the existing APs as it is likely to cause a lot of dumping. "It would be detrimental and the local producers will also be affected,” she added.
