KUALA LUMPUR, Aug 4 — The Ministry of Agriculture and Food Industries together with the Public Private Partnership Unit (UKAS) is in final stage of negotiations to determine the terms and conditions for a new agreement with Padiberas Nasional Berhad (Bernas).

Its minister Datuk Seri Ronald Kiandee said Bernas’ concession will end next January (2021).

He said there were six issues which the government will consider in finalising the new agreement, including Bernas’ performance, and assessing its key performance indicators (KPI).

“Secondly, to review the legal aspects, including other agreements which Bernas had signed with the government. Thirdly, to review the implications on cost and the government’s capabilities as a high investment cost is needed to manage the padi and rice industry.

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“Fourth, to review the effectiveness of the ‘single gatekeeper’ policy; fifth, to ensure a more effective implementation of social obligation, including increasing the national rice stockpile for national food security; and sixth, creating an body to oversee the implementation of Bernas’ social obligation,” he said when winding-up the debate  on the motion of thanks for the Yang di-Pertuan Agong’s royal address at the Dewan Rakyat sitting here today.

Kiandee said the sole importer policy was introduced in 1973 to ensure national food security after the price of rice was affected when importers refused to import rice into the country as they were afraid of incurring losses.

“Because of this, Malaysia faced a crisis of shortage of rice. Ever since the sole rice importer policy was implemented, till today, the country has not faced a crisis of rice shortage,” he said.

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Meanwhile, on the issue of dependence on food import, he said there were many food items such as fish, chicken and vegetables which had achieved almost 100 per cent self-dependency.

He said Malaysia was only importing a few food items such as meat, chili, cabbage as well as various temperate climate vegetables and fruits which were economical to plant here for domestic consumption.

“The country also has to import various items such as flour, chicken parts, and coconut for the food industry to produce products based on agro-food.

“Some of these products will be re-exported, and this reduces the gap in the national trade balance. So, the perception that the country is too dependent on food exports is not correct,” he said. — Bernama