PUCHONG: Food manufacturers and sundry goods traders are urging the government to stabilise diesel prices and offer temporary financial relief, cautioning that otherwise they will be forced to either raise prices or shut down.
The Malaysian Food Manufacturers Association has called for diesel to be brought down to about RM3 per litre, a six‑ to 12‑month moratorium on loan interest repayments, and fast‑tracked special loans to help businesses cope with soaring costs.
“Transport runs every day. When diesel goes up, transportation costs go up. If this continues, manufacturers will either have to close their doors or increase prices to survive,” said its president Ding Hing Sing at a joint press conference with the Federation of Sundry Goods Merchants Associations of Malaysia and the Malaysian Bakery, Biscuit, Confectionery, Mee and Kuay Teow Merchants Association on Thursday (March 26).
“We hope the government can stabilise diesel prices and bring them down to about RM3 per litre. We also hope for a special loan scheme that is easy to apply and quickly approved so businesses can cover the additional diesel expenses,” he said, adding that many firms are already paying tens of thousands of ringgit extra every month just for fuel.
“If the price can be adjusted to around RM3‑plus per litre in Peninsular Malaysia, we can manage,” he said, noting that the associations have requested meetings with the relevant ministers but have yet to receive a reply.
He said the surge in diesel prices has badly hit the food manufacturing sector, especially small and medium‑sized producers, some of whom are facing extra costs of about RM60,000 to RM80,000 a month.
He said businesses are not only grappling with diesel prices but pressure along the entire supply chain, with plastic raw materials – which are petroleum‑based – having more than doubled in price and shortages making it hard to secure supplies.
He added that if frozen food prices have to be revised, they could go up by about 10%.
Federation of Sundry Goods Merchants Associations of Malaysia president Hong Chee Meng said members were facing a “double blow” from higher diesel costs and increased Sales and Service Tax (SST) once prices are adjusted.
He said the government should immediately roll out emergency measures to support local food producers.
“Sales and Service Tax has already added to businesses’ burdens. Now we also have rising diesel prices and higher raw material costs because of the war – and in the end, it’s ordinary people who suffer.
“For some products, costs have already risen by about 15%. Some food items are price‑controlled, raw materials are hard to secure, and for diesel we are relying on the authorities.
“We urge the Finance Ministry and the Domestic Trade and Cost of Living Ministry to act immediately and come up with concrete solutions. The government has economists and professionals,“ he added.
Malaysian Bakery, Biscuit, Confectionery, Mee and Kuay Teow Merchants Association president Chaang Tuck Cheong said many small and medium‑sized manufacturers were already paying the more than RM100,000 every month just to cover diesel.
Chaang said they had been in the business for many years and had never seen a situation like this.
“We hope the government can step in to help us stabilise transport costs. If we don’t raise prices, we simply can’t survive,” he added.
