PETALING JAYA: The lower price of imported white rice (BPI) at Padiberas Nasional Bhd (Bernas) warehouses will have minimal impact on food prices at restaurants, say industry players and consumer groups.
Petaling Jaya Coffeeshop Association president Keu Kok Meng said the reduced BPI price would unlikely lead to a price reduction for hawker food, as most stalls prefer using local rice.
“High-end restaurants mostly use imported rice, while most stalls in coffee shops selling chicken rice, fried rice or mixed rice use local rice.
“As a result, the majority of Malaysians will likely not enjoy any savings from this BPI price reduction,” he said in response to the announcement by Bernas that the BPI price would be reduced from RM3,000 to RM2,800 per tonne from Sunday.
With the announcement, Malaysia continues to offer the lowest prices for imported rice in South-East Asia.
Federation of Malaysian Consumers Associations (Fomca) chief executive officer Saravanan Thambirajah said the price reduction would likely benefit those who cook at home as opposed to those who eat out.
He said the price reduction of about 6.67% would likely see the price of rice in retail shops dropping.
Saravanan said the price of a 5kg bag is expected to drop by at least RM1 and the cost of a 10kg bag will be reduced by up to RM3.
“This reduction will help consumers save money, especially those from low-income families, while improving access to affordable food.
“While the exact reduction at the retail level may vary due to distribution and other costs, the move is a positive step toward easing the financial burden on households and ensuring better food security for Malaysians.
“However, this will likely not cause a drop in restaurant prices as seen previously, though businesses might be inclined to provide larger rice portions to entice customers,” he said.
Restaurant and Bistro Owners Association president William Lee said the BPI price reduction would translate to savings of only about 20sen per kg for businesses.
“The lower raw material costs can improve profit margins by reducing operating costs, which could allow for competitive pricing.
“Businesses could pass on these savings to consumers by providing more affordable meals that could drive up demand, which benefits both businesses and customers,” he said.
In March, Bernas reduced the BPI price from RM3,200 to RM3,000 per tonne in Peninsular Malaysia, at a time when the prices were at their highest level in 15 years.
