Kathmandu. The price of food and chemical fertilizers in Malaysia is expected to increase significantly. MalaysianMinister for Economic Affairs Nasrullah Mohd Nasser said in a speech to parliament on Monday that food prices could increase by 8 percent and chemical fertilisers by 15 to 20 percent due to high dependence on imported goods. 

According to Akmal, 63 percent of the chemical fertilizers used in Malaysia are imported.This puts the country’s agriculture sector at direct risk due to global supply disruptions.

Small and medium enterprises (SMEs) will be the most affected due to the rising cost of production. Stating that these industries may face cash flow problems due to the limited financial capacity of the industry, Minister Akmal said that the government is working to improve the distribution system to ensure the security of essential commodities and control prices.

He said that the government has prepared a long-term strategy in view of the crisis in the global supply chain.Currently, Malaysia has sufficient rice in stock for the next 5-6 months, while essential food items such as chicken, egg, fish, milk and fruits are sufficient for at least a month. 

To deal with the current situation, the government has adopted a policy based on four main pillars . These include protecting citizens, stabilizing supply and prices, supporting industry and small businesses, and strengthening long-term economic . In addition,the government will continue the programs of cash assistance and fuel subsidy for the targeted groups, the minister said.