Sour prospects in scrapping sugar subsidy

Scrapping the sugar subsidy will have less impact on households than on the commercial sector, where the likely outcome will be "chaos and closure of businesses".

This grim prediction by the Perak Consumers Association (PCA) is based on the extensive use of sugar in many consumer goods and food items sold by hawkers and petty traders.

PCA president Abdul Rahman Said Alli agreed that reduced sugar intake is essential for good health among Malaysians.

However, he suggested that the subsidy be retained for commercial use, to protect the livelihood of food-sellers.

Asked how a distinction will be made on purchases for domestic and commercial use of sugar, he said the government should identify a mechanism for this.

News reports had quoted Domestic Trade and Consumer Affairs Minister Ismail Sabri Yaakob (right) as saying that the government spends RM720 million annually to subsidise the cost of sugar, a controlled item.

It is considering removing the subsidy in order to promote a healthy lifestyle. Scrapping the subsidy would see the price of sugar jump by about 70 percent from RM1.45 to RM2.45 per kg, he said.

However, Rahman expressed scepticism as to whether lifestyle changes can be realised, making a comparison with Thailand where the high price of sugar has not deterred use.

"What we need to do is to educate and change the mindset of Malaysians to modify their lifestyle, to become less addicted to sugar," he said.

'Aim for enforcement'

On a separate matter, Rahman (below) said the Health Ministry's proposal to ban the sale of cigarettes in small packs will be an exercise in futility, if this is not accompanied by effective enforcement.

Health Minister Liow Tiong Lai said the upcoming ban on the manufacture and sale of packs containing less than 20 sticks cigarettes had been gazetted on Sept 23, 2004 under the Tobacco Products Control Regulations 2004.

However, enforcement was postponed when the government took into account appeals by cigarette companies.

Liow said the ban, from June 1 next year, would deter children and youths from buying cigarettes and picking up the smoking habit.

However, Rahman said: "This is just another gimmick by the government which is good at bringing out new rules and regulations, but is a toothless tiger when it comes to enforcing such measures.

"The ban on smaller packs will only encourage children and the youth to switch to cheaper packs of 20 sticks, priced at RM2.50, which are freely available."

He said the ministry should instead restrict the number of public areas where smoking is permitted, and punish offenders as a deterrent to others.

Tamil Nadu in India, he said, is a good example of a place smoking is prohibited in public places. Offenders are liable to heavy fines.