WITH the war in Ukraine spiking fuel and food prices, UMNO supreme council member Datuk Seri Ahmad Shabery Cheek urged the Government to be prepared to face the twin crises.
“In 2008, when oil prices breached the US$100 per barrel threshold, rice prices also skyrocketed along with it. Many countries then implemented export curbs including Thailand and Vietnam, which caused panic buying.
“Bear in mind, Malaysia imports more than one million tonnes of rice annually,” he said in a Facebook post.
Earlier today, Reuters reported that the conflict in Ukraine has triggered several countries to halt exports on several food items such as palm oil, wheat, barley, sugar and meat.
United Nations (UN) said that world food prices rose to a record high in February to post a year-on-year increase of 20.7%.
Several experts have predicted the West’s decision to ban oil imports from Russia could spike its prices further, projecting that it may touch US$300 per barrel in time.
Sign agreements with ASEAN
On that note, Ahmad Shabery urged the Government sign agreements with other members of the Association of Southeast Asia Nations (ASEAN) to protect the country’s food security, including with those importing Malaysia’s palm oil.
He added that with crude oil prices spiking, it would increase transportation costs which in turn, increase prices of fertilisers.
“This may cause corn oil and other cooking oil producers to switch to bio-fuel production which is more lucrative.
“In addition, we must look into stockpiling our corn and soy bean produce as both are needed as feeds for chicken and farm-bred fish,” the former minister mentioned.
Ahmad Shabery then urged the Government to adjust the nation’s budget to weather the crises and prioritise food security.
“Just like floods, we cannot stop the rain but we can take the necessary steps to mitigate its impact,” he quipped. – March 10, 2022
