KUALA LUMPUR, June 16 — The domestic trade, consumerism and co-operatives ministry today agreed to a compromise licensing system for all sundry shops in place of separate permits to sell essential goods, warding off a threatened nationwide boycott by traders.

The introduction of a separate licence to sell sugar, flour and cooking oil had resulted in the Federation of Sundry Goods Merchants Association of Malaysia threatening to stop selling the items.

With the change in the licensing system, federation president Lean Hing Chuan agreed today to cancel the boycott.

Minister Datuk Seri Ismail Sabri Yaakob (picture) said the single licensing system would be introduced so as not to burden sundry shop operators.

“Licensing would continue. However, because of complaints that too many licences are needed, we agreed to reduce the [number of] licences to one,” said Ismail after a meeting with the Federation of Sundry Goods Merchants Association of Malaysia.

“There will only be one licence from the ministry,” he said, before adding that the new system will come into effect next month.

Sundry shop operators currently need to apply for separate licenses from the ministry to sell liquid petroleum gas, for the calibration of scales, and for the sale of controlled items during festive seasons.

Additionally, they are also required to apply for a license from the ministry of agriculture to sell rice.

Ismail said that he would propose to the Cabinet to unify all licenses issued by different agencies for sundry shop operators.

“Me and Datuk Seri Liow Tiong Lai will bring up this matter together in Cabinet,” he said.

During the meeting today Ismail said the ministry had also agreed to drop its proposal for sundry shop operators to provide daily reports on sale of essential goods.

Sundry shops in border towns, however, would only be allowed to get a limited supply of 200 kg of sugar and flour per month in an attempt to stop smuggling activities.