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Malaysia to stop foreigners buying cheap fuel
Kuala Lumpur—Malaysia on Sunday said it was
considering using its chip-based national identity card to prevent
visitors from Singapore and Thailand buying cheap subsidised fuel
meant for locals. Its latest plan comes as the government begins
radically reviewing its fuel subsidies, expected to cost 43 billion
ringgit (13.6 billion dollars) this year if oil prices hover around
120 dollars per barrel.
Malaysia heavily subsidises petrol, diesel and gas as well as 21
food items but rising global prices and controls have triggered
severe shortages, as well as smuggling across its porous borders and
long coastline.
“The technical features are there on the Mykad (Malaysian
identification card) and can be integrated with fuel pumps so they
can be used to identify the person,” domestic trade and consumer
affairs minister Shahrir Samad told AFP. “We are looking to see if
we can use it on the fuel pumps so that only Malaysian citizens get
the subsidy,” he added.
“We should not be subsidising fuel and goods for foreigners like
Singaporeans and Thais. Those without MyKads can continue to buy the
fuel at the pumps but at unsubsidised prices.” Singaporeans often
make day trips across the causeway linking the island state to
Malaysia to fill their petrol tanks and buy groceries, which are
cheaper here.
Smuggling of supplies of cooking oil, petrol and flour is also rife
across Malaysia’s porous northern border with Thailand. Shahrir said
the government was also developing a subsidy management system that
would ensure cheap fuel went to the poor to prevent wastage of the
subsidy.
“If we can save money on fuel subsidies, we can use this to fund
anti-inflationary projects to keep prices and costs low for
Malaysians,” he said. On Friday, the government said it would spend
2.49 billion ringgit this year to increase food production amid
soaring costs globally for staple items like rice.
Malaysia produces some 1.6 million tonnes of rice, which roughly
meets 70 percent of domestic consumption.
The balance is usually imported from neighbouring Thailand and
Vietnam. Global food prices have nearly doubled in three years,
sparking riots in Egypt and Haiti, protests in other countries and
restrictions on food exports in Brazil, Vietnam, India and Egypt.
Rising use of biofuels, trade restrictions, increased demand from
Asia to serve changing diets, poor harvests and increasing transport
costs have all been blamed for the price rise.—AFP
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