Channel NewsAsia 6 Jun 08;
SINGAPORE: Fresh produce from across the causeway will cost more because of higher fuel prices in Malaysia.
The Agri-Food and Veterinary Authority (AVA) said Singapore gets 46 per cent of its vegetables from Malaysia.
Petrol prices have gone up by 41 per cent and diesel prices have increased by 63 per cent. This translates to higher import costs.
For example, the price of a kilogramme of fresh chicken in Singapore has risen by 30 cents since Wednesday.
Toh Chai Ka, a fresh poultry supplier, said: "Fuel prices in Malaysia have increased, and transport cost for food has also increased. It's not cost effective if we do not also increase our prices."
The Poultry Merchants' Association said the price hike is inevitable, but it has urged its members to try and absorb the increase for now. Most traders are anticipating to fork out more to run their business.
Teo Chang Hoon, a provision shop owner, said: "Because petrol price is going up... they will increase the price for those things that come from Malaysia."
Dan Ng, an organic vegetable seller, said: "These vegetables are from Cameron Highlands, from Malaysia. They are non-chemical, pesticide free and organic. Around some time in May, the price has already gone up by about 20 per cent."
The price of fish imported from Malaysia is likely to go up as well. Singapore gets over a quarter of its fresh fish from across the causeway and consumers are feeling the pinch.
One woman said: "The price of rice and some organic foods has gone up tremendously - rice, meat, chicken, everything. In fact, if you go to the wet market you can hear everybody grumbling on how things are now so expensive. You don't get your pay increase, but everything goes up."
AVA said it is looking to other countries to diversify Singapore's food imports. This will help keep prices for basic food items more competitive.
AVA has already identified Vietnam as an alternative source for vegetables, fruits and fish. - CNA/vm
