KUALA LUMPUR, March 16 — MCA has warned that the Iran war may lead to higher food prices in Malaysia as the country is dependent on food imports.
MCA deputy national organising secretary Kang Meng Fuat slammed Agriculture and Food Security Minister Mohamad Sabu for telling Malaysians to grow their own vegetables at home.
“The agriculture and food security minister’s remarks are a clear example of speaking lightly without understanding the real difficulties and realities ordinary people face on the ground, as the responsibility that should lie with the ministry has instead been passed on to the public,” said Kang in a statement today.
“Such an approach will have only minimal impact on addressing the challenges of national food security and stabilising food prices.”
In a response to Tasek Gelugor MP Wan Saiful Wan Jan, who had made similar criticisms of Mohamad, the minister yesterday defended his self-cultivation proposal as part of a “layered” food security strategy.
Mohamad also acknowledged the impact of rising prices of fertiliser, and corn and soybeans for animal feed, as well as the risk of global disruptions to seedlings and ruminant cattle supply.
The minister further noted that C2 and C3 vessel fishermen aren’t eligible for subsidised diesel, while agrofood logistical costs can lead to an increase in retail prices. Malaysia raised diesel prices by 80 sen to RM3.92 per litre, effective from last March 12 until March 18.
Mohamad said the Agriculture and Food Security Ministry (KPKM), which is part of the Special Committee on Energy Security and Impact of the West Asian Conflict chaired by Finance Minister II Amir Hamzah Azizan, would liaise with Petronas to ensure sufficient supply of urea at controlled prices, besides proposing National Food Production Zones.
Kang pointed out that many farmers don’t own land for cultivation, suggesting provision of land through lease schemes of three to five years to enable the public to participate in agricultural activities.
“In a modern country, food security depends on a robust agricultural production system, stable supply chains, a reasonable policy environment and long-term investment in the agricultural sector. Shifting the responsibility for resolving food supply issues onto civil servants or ordinary citizens will not ease the current pressure of rising food prices,” said Kang.
“Many of the current food supply challenges in the country stem from structural policy issues. For example, the unresolved problem of renewing Category B fishing boat licences that has recently been discussed has prevented some fishermen from going out to sea as usual, thereby affecting the supply of seafood.”
The MCA leader also noted that the pig farming ban policy in Selangor has affected domestic food production.
“The current international geopolitical climate is filled with uncertainty. The war in the Middle East has pushed up global energy prices and driven increases in maritime transport and logistics costs. Under such circumstances, dependence on food imports not only raises supply risks but also contributes to rising food prices,” said Kang.
“If domestic production capacity is not strengthened, it is ultimately ordinary citizens who will bear the burden of higher food costs.
“This situation also contradicts the government’s repeated emphasis on reducing food import expenditure and strengthening national food security. Without institutional reforms at the level of agricultural production, encouraging household level vegetable planting will clearly not achieve national food security objectives.”
CNBC has warned of a rise in global food prices, as the Iran conflict is disrupting fertiliser shipments through the Strait of Hormuz. South China Morning Post reported last Wednesday that the price of urea in Southeast Asia has already jumped more than 40 per cent.
