WITH the war in Ukraine ongoing, DAP urged the Government to establish a price stabilisation fund to cap prices from rising further.
“Inflation and business costs may escalate due to the war. We urge the Government to inject at least RM3 bil in seed money to set up the fund.
“The money can be procured from the Prosperity Tax imposed on large companies during Budget 2022,” its secretary general Lim Guan Eng said, in a statement.
Two days ago, Deputy Agriculture and Food Industries Minister Datuk Nik Muhammad Zawawi Salleh claimed that the conflict between Russia and Ukraine would not adversely affect national food security.
“They are not major export or import countries for Malaysia. If we cannot carry out export and import with these two countries, we can switch to other countries.
“In fact, to date, we depend a lot on China and Thailand,” The Star reported him as saying.
Touching on the matter, Lim said it was irresponsible for the Government to not take any price mitigation efforts by simply denying there would not be any price increase due the conflict.
For example, he projected that prices of food and other commodities such as oil, corn, soybean, palm oil and meat may rise, give the fact that Ukraine exports about 70% of the world’s wheat and corn, which are key ingredients in animal feed.
“And prices of corn, wheat, soybean and palm oil have indeed soared since Russia’s attack on Ukraine.
“With that, can the Government provide projections of the expected price increases and the current inventory of essential item available to prevent cost increase within three to six months’ time?” queried the former finance minister.
Review transactions with Russian businesses
On related matter, Lim urged the Government to review its transactions with Russian businesses following sanctions from the West.
He added it was pertinent so as to prevent Malaysia from running foul of the sanctions, which may jeopardise valuable relationship with Western businesses.
“In the military sphere, will Malaysia reconsider its use of Russian-sourced weapons and equipment for the Malaysian Armed Forces (MAF) when dealing with Russian defence and aerospace firms?
“MAF’s inventory of Russian fighter jets include 18 units of Su-30MKM bought for US$900 mil (RM3.78 bil) deal in 2003, and the now-decommissioned 18 units of MiG-29N it bought in a US$600 mil (RM2.52 bil) deal in 1995.
“Other weapons include air-to-air munitions, air-to-ground munitions, infantry portable anti-tank guided missiles, and short ranged man-portable air defence systems,” Lim remarked. – Feb 28, 2022
