PUTRAJAYA - MALAYSIA has banned 10 essential items from being taken out of the country by anyone without an export permit, in a bid to ensure adequate domestic supply following recent shortages.

Offenders can be fined RM100,000 (S$44,000) or jailed for three months or both for a first time offence, under the ban announced by Domestic Trade and Consumer Affairs Minister Shafie Apdal yesterday.

The 10 items are sugar, wheat flour, cooking oil, petrol, diesel, liquefied petroleum gas, chicken, and fertiliser, as well as mild steel roundbars and cement and clinkers, which are used in the construction industry.

Datuk Shafie's announcement comes as Malaysia prepares for national elections in which the spiralling cost of basic food items will be a major issue.

The new rules apply to Malaysians and foreigners alike, although Singaporeans in the habit of topping up their tanks across the Causeway will be unaffected, as the petrol ban applies only to fuel carried in containers.

Hoarding caused a recent shortage of cooking oil, the price of which is controlled by the government.

At the same time, smuggling of supplies of cooking oil, petrol and flour across Malaysia's porous northern border with Thailand is rife.

Malaysians enjoy subsidies on water, electricity, fuel and food, particularly rice and sugar, which cost the government an estimated RM35 billion - a quarter of its revenue - in 2006.

Simply subsidising cooking oil, which disappeared from shelves briefly last month during the shortage, costs RM635 million a year.

And Datuk Shafie told a news conference yesterday: 'We have taken this measure in order to prevent disruption to supply in the market.

'Smuggling can cause a lot of problems. We are not supposed to subsidise outsiders too, subsidies are meant to be enjoyed by Malaysians.'

The glaring disparity between Malaysian prices and those of its neighbours has led to massive personal export of goods, he said, adding that border officials had said that the items on the list were those most commonly taken out of the country.

Under the ban, which is effective immediately, repeat offenders can be fined RM250,000 or jailed for five years or both.

Meanwhile, while welcoming the ban, Federation of Malaysian Consumers Associations president Marimuthu Nadesan has suggested that a better way to avoid shortages of essential goods might be to stop subsidising them altogether.

'Visitors from our neighbouring countries are buying our subsidised sugar, flour, petrol and rice, and this is what causes nationwide shortages,' he said.

'For example, sugar prices have not moved for over 12 years. There was a shortage (in 2006) because prices in the global market went up but prices here did not move.

'Subsidies for many items in Malaysia are more than 50 per cent. People have to learn to live without subsidies.'

hazlinh@sph.com.sg