The government must act swiftly to protect the economy by introducing price stabilisation mechanisms for key sectors such as agriculture, logistics and food production, says Perikatan Nasional (PN).
PN secretary-general Datuk Seri Takiyuddin Hassan stressed that targeted assistance for paddy farmers, fishermen and small-scale operators should be expanded, alongside support for input costs to prevent disruptions to planting cycles.
He also called on the government to consider tax relief for affected industries and to immediately engage stakeholders in order to develop effective mitigation measures.
According to him, failure to act promptly could have long-term consequences on food price stability, public welfare and national economic resilience, potentially escalating into a deeper crisis.
Takiyuddin highlighted concerns raised by the Persatuan Persaudaraan Pesawah Malaysia (PeSAWAH), noting that paddy farmers are increasingly burdened by rising diesel prices, which have significantly raised cultivation costs and threatened domestic food production.
He said farmers have limited ability to absorb sharp increases in operational costs, with expenses for ploughing and harvesting rising by more than 50 per cent, while overall input costs including fertiliser and pesticides have surged by up to 65 per cent.
Such pressures, he warned, could lead to delays in planting seasons, reduced cultivation areas and lower rice output, ultimately increasing Malaysia’s reliance on imports and weakening food security.
Takiyuddin also pointed out that although Malaysia had aimed for a 75 per cent rice self-sufficiency level by 2025, actual figures have reportedly declined from 62.6 per cent in 2022 to 56.2 per cent in 2023 and 52.9 per cent in 2024, with a further drop expected this year.
He said the rising cost burden is not limited to farmers alone, but is also being felt across logistics, transport, construction, plantation, fisheries and small and medium enterprises (SMEs), all of which are facing escalating operational expenses.
These increases, he added, are expected to create a ripple effect that will eventually push up the prices of goods and services, placing further strain on consumers already dealing with high living costs.
Takiyuddin also noted that global uncertainties, including geopolitical tensions in West Asia, have contributed to volatility in energy markets, but insisted this should not be used as a reason for delayed policy action.
He further highlighted rising gas prices, stating that industrial gas costs have increased by more than 20 per cent for 15kg cylinders and over 22 per cent for 50kg cylinders, which would further drive up production and electricity generation costs.
