Malaysia

[UPDATED] Govt mulls steps to help F&B sector with rising costs: Rafizi

Economy minister to meet people in industry for solutions

Updated 3 years ago · Published on 27 Jan 2023 6:30PM

[UPDATED] Govt mulls steps to help F&B sector with rising costs: Rafizi
Economy Minister Rafizi Ramli has said that several steps are being refined to help those in the food and beverage sector to deal with rising costs. – ALIF OMAR/The Vibes pic, January 27, 2023

KUALA LUMPUR – Several measures are being refined to help traders and food and beverage operators deal with rising costs, Rafizi Ramli said.

The economy minister, who has been urging consumers to boycott eateries which charge unreasonably as a solution to lowering prices, said he would be meeting with representatives of the food and beverage (F&B) industry on possible steps by the government and restaurateurs to overcome high operating costs.

“Some of the measures being finetuned include expanding the gig workforce model in the restaurant sector and F&B industry.

“This is part of efforts to streamline the labour market with the demands of the economic sector, as part of overall efforts to restructure the country’s economy,” he said in a statement.

Rafizi, who has come under fire for being simplistic in relying on boycotts to lower prices, added that he was aware of the challenges restaurateurs faced.

“They face increasing costs in other areas, such as employee salaries following the minimum wage increment to RM1,500,” he said.

“In the near future, I will meet with F&B industry representatives to reciprocally discuss possible steps that could be taken by the government, restaurant operators and food traders.”

Rafizi also acknowledged the views of Malaysian Muslim Restaurant Owners Association (Presma) president Datuk Jawahar Ali Taib Khan which were aired on an Astro Awani programme last night.

“Jawahar’s views are well received regarding roles to be played by the government, businesses, and consumers in dealing with the price increase in food and beverages,” the minister said.

“His views for consumers to be more aware of price increases, and to be smart with choosing eateries that offer better prices is in line with the government’s.”

Rafizi also reiterated the disparity between inflation reduction and retail prices that continued to remain high.

“Despite December’s inflation dropping to 3.8% from 4% a month prior, the price ranges in restaurants and hotels are the only ones that have not dropped.

“Restaurants’ price ranges increased by 7.4% in December, although the figure was at only 7% the month before.”

Curbing inflation requires the cooperation of all parties, he added.

Rafizi has repeatedly called on consumers to be selective when patronising restaurants and other eateries that refuse to lower their prices, despite the costs of raw materials having been reduced.

He alleged that it was “the only way” for retailers to react, stating that they will have no choice but to bring their prices down when they do not get a response on their selling prices. – The Vibes, January 27, 2023

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