The government has abolished subsidies for 25kg bags of wheat flour which in turn may affect some food prices.

The Star reports that the subsidy was removed effective today bringing up the price for 25kg bags of wheat flour from RM33.75 to RM42.

The English daily quoted a flour importer as saying that prices of food like roti canai and local kuih which use normal or general purpose flour could be affected by the subsidy removal.

However, the importer said the price of bread, biscuits and cakes, which use premium flour that is not subsidised, would not be affected.

Subsidies for the 1kg bags of flour bought by most households, however, will still be subsidised and sold at RM1.35.

It is understood that millers and wholesalers were informed of the subsidy removal last week.

However, The Star report does not state why the subsidy was removed.

Malaysian Indian Restaurant Owner's Association honorary chairperson R Ramalingam Pillai said members will not increase the price of roti canai following the abolishment of the subsidy.

According to a Sin Chew Daily report, Ramalingam confirmed the association had received the government's notice but it will not increase prices although their revenue will be affected.

Prime Minister Najib Abdul Razak's administration is embarking on cost-cutting measures as his government struggles amidst an economic downturn triggered by the continued slump in world oil prices coupled with the drastic fall in the value of the ringgit.