MINISTER of Domestic Trade and Cost of Living (KPDN) Datuk Armizan Mohd Ali, has laid out the government’s roadmap to reduce cost-of-living pressures and strengthen the domestic economy, in line with the objectives of the 13th Malaysia Plan (RMK13).
In his closing speech during the RMK13 parliamentary debateon Thursday, the minister acknowledged the contributions of 11 Members of Parliament who raised issues directly linked to the ministry’s remit, including market competition, consumer protection, and the role of micro-enterprises in the national economy.
“While courts may provide interpretation, institutional reform must be approached comprehensively. The government will assess all decisions within the context of its reform agenda and national harmony,” he said.
Under RMK13, KPDN will contribute to efforts aimed at bolstering economic diversification and upward social mobility, through reforms in retail sector efficiency, food supply chain resilience, market competition and cost-of-living management.
The minister outlined several key policy areas and ongoing initiatives:
Legislative Reforms and Market Competition
Responding to calls from Jelebu MP for a faster reform of the Competition Act 2010, Armizan clarified that while a unified competition law framework is targeted for 2030, key enforcement measures are already in motion.
“To date, MyCC has found 270 companies in breach of Section 40, with 268 involved in cartel activities and two abusing monopoly positions,” he said.
Of these, 26 companies were fined a total of RM97.31 million for bid-rigging. Although the Malaysia Competition Commission (MyCC) lacks authority to exclude firms from tenders before they are found guilty, its rulings are published and serve as a reference for government procurement decisions. The Commission is also working with other bodies, such as the Construction Industry Development Board (CIDB), to raise awareness and strengthen enforcement against cartel behaviour.
International Market Access for Local Entrepreneurs
KPDN is supporting local micro, small and medium enterprises (MSMEs) in international expansion through initiatives such as the “Local to Global Retail” programme. In 2024, 65 companies successfully entered markets including the UAE, Thailand and Japan, aided by training in industry compliance, product development and marketing.
“Our 10-module business development training programme prepares MSMEs for compliance, market penetration and marketing strategies,” said the minister.
Subsidised LPG for Micro Food Vendors
Addressing concerns about the withdrawal of LPG subsidies, particularly for food vendors, the minister confirmed that “the government remains committed to subsidising LPG for micro and small F\&B traders even when their usage exceeds 42kg.”
Following Cabinet approval on 5 June 2025, KPDN is reviewing the 2021 Supply Control Regulations to formally protect this entitlement. Engagements with stakeholders are expected to conclude by 31 October.
Diesel Subsidy for Island Operators
The diesel subsidy scheme has also been expanded to benefit ferry and roll-on, roll-off (RORO) operators serving islands such as Pulau Tioman.
“This initiative will help stabilise fares, reduce operator costs, and boost local tourism,” he said. Operators will receive RM0.50 per litre in subsidies, with the fuel capped at RM2.50 per litre.
Rejection of Kedai MADANI Proposal
In response to Kalabakan MP’s proposal to revive Kedai Rakyat, rebranded as ‘Kedai MADANI’, the minister confirmed that the government will instead focus on strengthening partnerships with existing retailers through the Jualan RAHMAH MADANI programme.
He cited concerns over operational cost, market fairness, and sustainability. “We must consider accessibility, retail viability and the ability to offer diverse products at stable prices. Past models like KR1M faced logistical and financial challenges, and we do not intend to repeat them,” he said.
National Cost of Living Action Plan
The ministry also outlined its broader cost-of-living strategy under RMK13, with a dedicated National Cost of Living Action Plan (2026–2030) in development. This will address key issues such as food, health, education, housing, transport, income and utilities, alongside efforts to improve supply chain transparency and subsidy management.
“Government commitment is clear — we are integrating enforcement efforts across ministries and agencies to ensure supply chain transparency and fair consumer prices,” said the minister.
Consumer Policy and Empowerment
To further support citizens, KPDN is launching a Consumer Action Plan 2030, aligned with the revised National Consumer Policy 2.0. It will focus on consumer empowerment, sustainable consumption, and improved governance.
The minister concluded by thanking MPs for their feedback and reiterated the government’s commitment to structural reform. “We are focused on delivering effective, sustainable solutions to the cost-of-living crisis, while ensuring long-term economic balance and fairness,” he said. - August 21, 2025
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