MyBenefits Relief on: Food & Essentials

General Consumer Issues1Harga Price Standardization Programme  

Cheaper essential goods for East Malaysians  
Last updated: December 27, 2017 
All information has not been verified by the relevant Ministry/Agency

What is this programme about?  

In 2009, the Ministry of Domestic Trade, Co-operatives and Consumerism (KPDNKK) through the Secretariat of National Price Council (NPC) implemented the Price Standardisation Programme to remove the price disparity of essentials goods between East and West Malaysia.  In general, the prices of goods in East Malaysia are approximately 20% to 30% higher in comparison to West Malaysia due to higher logistic cost.  In order to close the price gap, the government allocated subsidies to absorb the cost of transportation and distribution of essential goods. The programme includes three projects, namely the distribution of essential goods; the price of liquefied petroleum gas; and price standardization of petrol and diesel/ community drumming.

 

In 2013, in another effort to standardize prices of goods between East and West Malaysia, the government introduced the 1Harga 1Malaysia programme. This initiative aimed to standardize a larger stock of essential goods such as sugar, all-purpose flour, 1kg cooking oil and GMT, KR1M, Coop1Malaysia and FAMA branded products. Through this programme, these goods were made available at KR1M Shops, Stores Coop1Malaysia, Agrobazar Kedai Rakyat, FAMA stores and dealers (Point-of-Sales) in the country. The uniform price programme involves two phases namely the standardization of flour and sugar prices while the second phase involves the standardization of KR1M products, 1Malaysia COOP products and Fama products.


The standardization was made possible with the government bearing the cost of shipping the goods from the Peninsula to Sarawak, Sabah and Labuan and the cost of delivery to the rural and interior areas.

 

Beginning June 2017, to further reduce the logistic cost of goods, the government abolished the cabotage policy imposed on all cargo shipping services between Peninsular Malaysia, Sabah, Sarawak and Labuan.  The 30-year-old policy limits the shipment of goods from the peninsula to Sabah and Sarawak to only Malaysian-flagged ships. The cabotage policy was first introduced in the 1980s as a way to promote Port Klang as the nation’s main trans-shipment hub as it would require goods from outside the country to go through the port before being shipped to East Malaysia. This means that imported goods usually end up in West Malaysia before being sent over to Sabah and Sarawak, increasing the cost of goods in East Malaysia.  This change in policy should bring about a lower cost of goods in general not limited to essential goods.

What are MyBenefits?

Assistance: Subsidy of logistics and distribution costs for East Malaysia's essential goods

Target Group: East Malaysians 

 

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Contacts

Location: Malaysia

aNewMalaysia101@gmail.com

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