KUALA LUMPUR: A rice subsidy programme missed its intended target of benefiting Malaysian low-income earners, according to the Auditor-General’s Report.
It said that subsidised rice went to foreigners, restaurants and food stalls, and pets.
“Of the 83 grocery shops visited, 38 did not have subsidised rice in stock because they did not receive enough supply to meet demand.
“Also of 86 consumers who responded, 54 were Malaysians, while the rest were those who were not eligible for subsidised rice.
“They consist of foreigners from Bangladesh, Nepal, Indonesia, Pakistan and Philippines, as well as restaurant operators who use the rice as pet food,” according to the report's third series 2014.
In response, the Agriculture and Agro-based Industries Ministry announced that it had abolished the subsidy for the Super Tempatan 15% broken (ST15) grade rice in Nov 1, 2015, following too much leakage in the programme.
The scheme, announced in 2008, was meant to cover losses incurred by Malaysia’s sole rice distributor Padiberas Nasional Berhad (Bernas) to procure and distribute ST15 and S15 rice.
The audit report also found several other weaknesses with the rice subsidy programme, which is now scrapped, including quotas given to wholesalers with expired licences, and wholesalers who failed to carry out wholesaling activities.
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