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'We have to take steps to make sure it doesn't go through our borders because the price difference is quite great between Malaysia and Singapore, Thailand and Indonesia,' said Mr Shahrir (above). -- PHOTO: REUTERS
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KUALA LUMPUR - MALAYSIA might ban taking locally grown rice out of the country in a bid to stave off fears of a shortage caused by a global food crisis, a Cabinet minister said.
The measure is aimed at cracking down on shoppers from neighbouring Singapore and Thailand who cross over to buy cheaper rice and other food in Malaysia.
'We have to take steps to make sure it doesn't go through our borders because the price difference is quite great between Malaysia and Singapore, Thailand and Indonesia,' said Domestic Trade and Consumer Affairs Minister Shahrir Abdul Samad on Monday.
Malaysia is not a rice exporter and imports about 30 per cent of its needs, but local rice is cheaper than in neighbouring countries.
Depending on the quality, some varieties of Thai rice cost twice as much as Malaysian rice in Thailand's retail markets, Mr Shahrir told reporters.
He said there was now no shortage of rice in Malaysia despite a global crisis that has seen the price of Thai rice nearly tripling in the past five months.
Mr Shahrir said the attempt to make rice a controlled item was 'not because it is necessary - but you have to try to bring comfort and assurance to the people'. Rice prices have surged amid poor weather in some nations that produce the crop, and due to demand outstripping supply.
Some Asian countries, including India and Vietnam, have been blamed for contributing to the problem by curbing rice exports to guarantee their own supplies.
Malaysia also recently announced plans to boost domestic food security by growing rice on a massive scale in a state on Borneo island and by setting up a a RM4 billion (S$1.7 billion) plan to guarantee food supplies.
Mr Shahrir said earlier that the government may also subsidise rice in the future if necessary.
Although there are no direct subsidies on rice, the government provides farmers with free fertiliser and other concessions to keep the price under control.
The government spent more than RM900 million on such concessions in 2007.
The government spends RM4 billion per year on the food-related subsidies, including directly subsidising flour, white bread and cooking oil. -- AP
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