Malaysia

‘Not serious about food security’: Anwar blasts move to extend Bernas monopoly

Encouraging practice will kill competition, result in consumer price hike, says opposition leader

Updated 4 years ago · Published on 20 Jul 2022 2:07PM

‘Not serious about food security’: Anwar blasts move to extend Bernas monopoly
Opposition leader Datuk Seri Anwar Ibrahim has also questioned Putrajaya’s insistence on allowing Bernas to be the sole importer of rice and tasking it with distributing industry subsidies. – AFP pic, July 20, 2022

by Qistina Nadia Dzulqarnain

KUALA LUMPUR – Opposition leader Datuk Seri Anwar Ibrahim has slammed Putrajaya’s decision to extend Padiberas Nasional Bhd’s (Bernas) concession as the single gatekeeper for rice imports, saying it highlights the government’s lackadaisical attitude towards food security. 

Questioning why the government appears to be unwilling to negotiate and apply a firm hand on big companies, he said that the extension is another example of the government taking a backseat on issues that affect the people. 

“When they (the government) talk about food security, they do not take the matter seriously.

“There are no substantial changes, only slight adjustments such as increasing subsidies on several items. 

“Even then, the subsidies are not targeted and are instead benefitted from by everyone, including those in the T20 socioeconomic group,” he said during a press conference at Parliament today.

Stressing that the opposition opposes any policy that protects monopoly, he said encouraging the practice will kill competitors and result in an eventual price increase for consumers.

“They (the government) presented their case yesterday and while they made minor adjustments, it is still difficult for us to support the bill as the principle remains the same,” he said, referring to the proposed amendment to the Control of Padi and Rice Act 1994. 

Suggesting instead that the concession be distributed to farmers’ associations which will directly benefit rice farmers, he said that there is an imbalance in the system, as those managing rice imports are swimming in profits, while rice farmers barely make a living and are mostly from the B40 income category.

Yesterday, Khoo Poay Tiong (Kota Melaka-PH) scoffed at the government for persistently harping on its Keluarga Malaysia slogan when rice farmers earn a meagre fraction of the millions made in monthly profits by Bernas.

The opposition lawmaker also questioned Putrajaya’s insistence on allowing Bernas to be the sole importer of rice and tasking it with distributing industry subsidies. 

“In 2019, they profited RM135 million, and in 2020, it was RM170 million. That year, they declared dividends of RM670 million to its shareholders,” he said when debating the Control of Padi and Rice (Amendment) Bill 2022 in the Dewan Rakyat. 

He claimed that in comparison, based on information gathered by Sekinchan assemblyman Ng Suee Lim, local small players in the area only make about a measly RM1,000 each month. 

The amendment to the Control of Padi and Rice Act 1994 aims to empower the minister to appoint public officers as deputy directors-general, and to introduce a new provision for compoundable offences under the act.

Subsequently, Agriculture and Food Industries Minister Datuk Seri Ronald Kiandee had asserted that the decision to allow the firm to have sole prerogative in the rice import industry until January 2031 is final.

According to Kiandee, the government’s move to give Bernas sole control of rice import for another 10 years – a decision made in November 2020 in the midst of the Covid-19 pandemic – has proven to be the right one. – The Vibes, July 20, 2022

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