Food Prices At School Canteens Expected To Soar Govt Help Sought

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More than 10,000 school canteen operators are expected to raise their prices by 50 percent next year, according to the Malaysian School Canteen Operators Association (PPKSM).
Its president Khairuddin Hamzah said this is due to the enforcement concerning the use of subsidised items.
“Every three years, schools open tenders (for canteens). Applicants would submit new prices based on the current cost and an estimate of the increase in cost for the next two or three years. Usually, it is an increase of 20 to 30 percent.
“But this year, there have been changes in terms of enforcement. In the past, the majority of operators used subsidised items like packet cooking oil and sugar to sell food and drinks cheaply,” he told Utusan Malaysia.
Khairuddin said many canteen operators were unaware it was against the law for businesses to use subsidised goods and that the practice was commonplace.
PPKSM found that numerous canteens were subjected to enforcement action for using subsidised items.
“This came as a shock to operators because they were under the impression that subsidised items could be used and had submitted tenders in the past based on the prices of these items.
“Many of us now have to use standard prices, which is the price without subsidies.
“So the increase (in prices), especially for canteens renewing contracts, will be more than 50 percent. This is to ensure that the authorities do not shut down their operations in future (for using subsidised items),” he added.
Govt must explain impending price hike
Therefore, Khairuddin appealed for the government’s intervention.
“If subsidies cannot be provided to maintain low prices, at least (the government) can explain why the prices in canteens have gone up.
“The government must play a role in this issue,” he added.
On another matter, Khairuddin said more than half of the canteen operators comprise senior citizens who are unfamiliar with legal matters.
Businesses are not permitted to use subsidised items like packet cooking oil in their operation“This includes laws related to the Inland Revenue Board (IRB) which makes it compulsory for all citizens to declare their earnings…
“Unfortunately, canteen operators in smaller schools who don’t earn a sizeable income think that they do not have to declare because even if they do, they would not have to pay taxes because it is below the threshold.
“In the current situation, if the government agencies investigate, many canteens will be affected,” he added, urging the government to organise awareness campaigns to address this problem. - Mkini

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