Trade groups appeal for temporary financial relief as diesel costs spike
PUCHONG: Food manufacturers and sundry goods traders are urging the government to stabilise diesel prices and offer temporary financial relief.
The Malaysian Food Manufacturers Association has called for diesel to be brought down to about RM3 per litre, along with the granting of a six‑ to 12‑month moratorium on loan interest repayments, and fast‑tracked special loans to help businesses.
“Transport runs every day. When diesel goes up, transportation costs go up. If this continues, manufacturers will either have to close down or increase prices,” said its president Ding Hong Sing at a joint press conference with the Federation of Sundry Goods Merchants Associations of Malaysia and the Malaysian Bakery, Biscuit, Confectionery, Mee and Kuey Teow Merchants Association yesterday.
“We also hope for a special loan scheme that is easy to apply for 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.
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 ranging from 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, while shortages make 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), which necessitates urgent government intervention to support local food producers.
“SST has already added to businesses’ burdens. Now we also have rising diesel prices and higher raw material costs because of the war.
“This is a double hit – higher operating costs and higher tax. We are under tremendous pressure,” he said, adding that many oil-based raw materials, including diesel, have seen sharp increases.
“For some products, costs have already risen by about 15%. In truth, we can’t move – some food items are price‑controlled, raw materials are hard to secure, and for diesel, we are relying on the authorities,” he said.
“We urge the Finance and the Domestic Trade and Cost of Living Ministries to act immediately to stop the bleeding and come up with concrete solutions. The government has economists and professionals,“ he added, while emphasising that the industry is not asking for open‑ended aid, but for temporary measures to weather current supply chain disruptions.
“In the end, there are only two choices: close shop or raise prices,” he said.
Malaysian Bakery, Biscuit, Confectionery, Mee and Kuey Teow Merchants Association president Chaang Tuck Cheong claimed many small and medium‑sized manufacturers were already paying more than RM100,000 every month just for diesel, which he described as unprecedented.
“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.
Fuel prices were raised nationwide yesterday, with RON97 up 60 sen to RM5.15 per litre and unsubsidised RON95 up by 60 sen to RM3.87. Even as subsidised RON95 petrol remained at RM1.99, unsubsidised diesel in Peninsular Malaysia rose 80 sen to RM5.52 per litre, an all-time high.
