KUALA LUMPUR – All types of goods’ subsidies must be eliminated and replaced instead with financial assistance for the poor, B40, and M40 communities, according to the Malaysia Consumer Movement.
Its vice-president Beninder Singh said that an approach where adequate financial assistance is provided to affected groups will neutralise the effects of rising prices.
He opined that all forms of subsidies will lead to leakage problems and cause the government to lose billions of ringgit.
“If there are no subsidies, then leakages can be saved and channelled directly to the identified communities. It can definitely be done.
“Malaysia is a wealthy country and its people should not have to live in hardship,” he said when contacted by Getaran, The Vibes’ Malay-language sister portal.
The activist added that the reason behind the increase of market goods cannot be pinned down to a single factor as there are several causes behind the situation, pointing out that the same phenomenon is currently taking place all over the world.
Seeing that Malaysia practices an open market economic system, Beninder advised the government not to intervene too much when it comes to determining the prices for goods.
“Instead, what can be done is to ensure that there is no profiteering by any one party. The monitoring of business competitiveness should also be emphasised by the Malaysia Competition Commission,” he said.
The consumer rights activist explained that while the elimination of subsidies – such as oil subsidies which are a main cost component – will trigger a slight rise in pricings, authorities must do their part to avoid profiteering.
Based on his experience, Beninder said that if Putrajaya insists on implementing targeted subsidies, he hopes that leakages will not happen again as it denies the B40 group its rights.
He noted that healthy and transparent competition can also lower the prices of goods, adding his hopes of the situation returning to normal once geopolitical circumstances stabilise.
“The government’s move to abolish the AP system for food items can also help control the prices of goods in the market,” he said, adding that the call enables traders to continue importing goods if there is a sudden price hike in the nation.
“We would also urge the government to increase the recognition of slaughterhouses and source countries for the import of meat and chicken.
“Besides controlling the price of basic goods, this will also lead to the dismantling of cartels that might exist in the country,” he said. – The Vibes, May 22, 2022
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