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Thursday, January 22, 1998 Published at 11:34 GMT



Despatches
image: [ BBC Correspondent: Simon Ingram ]Simon Ingram
Singapore

The economic turmoil sweeping south-east Asia is making itself felt in many different ways. Across the region, corporate bankruptcies, job losses and rising prices have become the order of the day. But in Malaysia, one of the most painful and noticeable aspects of the crisis has been a shortage of sugar. As our south-east Asia correspondent, Simon Ingram, reports, the situation has led cafe owners to consider an unusual course of action:

When the Malaysian authorities announced some weeks ago that sugar prices would rise as of February 1, the results were entirely predictable.

Swarms of shoppers of shoppers descended on supermarkets and stores, buying up all the sugar they could find.

Warnings against panic buying and hoarding proved to have little effect.

The shortages were made worse by large numbers of people from neighbouring Singapore and Brunei who were quick to spot the bargains afforded by the sharp decline in value of the Malaysian currency, the ringgit.

Although adequate supplies are now said to be available to cover the heavy demands of next week's holidays marking the end of the Muslim holy month of Ramadan, cafe owners are reported to be facing a problem.

Tea and coffee drinkers who do without sugar are apparently objecting to paying higher charges to cover the cost of sugar consumed by their fellow customers.

As a result, officials at the Ministry for Domestic Trade and Consumer Affairs are reported to be considering authorising coffee shops to charge separate prices for drinks with and without sugar.

A meeting on the issue is to be held between the ministry and the Federation of Coffee Shop Owners early next month, just when the sugar price rise takes effect.

This is not the only unorthodox solution that the authorities have come up with to alleviate the effects of Malaysia's economic woes.

The Finance Minister, Anwar Ibrahim, has urged people to grow their own vegetables to try and cut the burden on the budget of imported food.

Meanwhile the Prime Minister, Mahathir Mohamed, has given his backing to appeals to Malaysian women to sell their gold jewellery and buy government bonds with the proceeds, thus helping the authorities service their overseas debt.





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