GEORGE TOWN – Consumers should not believe rumours that the prices of goods and services will skyrocket next month due to the weakening ringgit, a Penang exco said.
State Domestic and International Trade, Consumer Affairs and Entrepreneurship Development Minister Datuk Abdul Halim Hussain said that such rumours would only drive hoarding and panic buying if the authorities do not stomp it out.
“Frankly, the federal government needs to do more to arrest this steep increase in living costs, but unverified accounts of a price hike would only make the current imbalance between supply and demand worse,” Abdul Halim told The Vibes.
Among those who lodged complaints was Brew bistro owner Howie Tan, who related that he was informed by certain suppliers that prices would go up more next month.
“Already, we are alarmed by the weakening of the ringgit. This shows our economic fundamentals may not have been that strong when we reopened. Or we lack the fiscal flexibility to prop up our currency. Imports would cost higher,” said Tan.
Meanwhile, Halim said that he has informed the Domestic Trade and Consumer Affairs Ministry of the need to ensure there is no food smuggling in view of the curb on exports of commodities such as poultry.
“Our enforcement must be strong to deter any food smugglers since chicken is a controlled item,” said Halim.
He added that the removal of Approved Permits (AP) to bring in large supplies of food must be done effectively to prevent corruption from emerging among the “middlemen”.
Halim urged residents here to be smart consumers by only buying what is needed now, to prevent hoarding and to assist the state in restoring normalcy in the supply and demand factors.
He added that he was informed that the present spike in food prices was due to the sudden reopening of the economy, poor logistics planning due to more vehicles on the roads now, and the global factor in inflation.
Meanwhile, in a text message exchange, former Deputy Agriculture and Agro-Based Industries Minister Sim Tze Tzin said that the move to remove the AP may backfire on the government’s move to arrest the shortage of poultry in the country.
“I think the government of Prime Minister Datuk Seri Ismail Sabri Yaakob is in a panic mode and they have rushed their decisions.
“To allow more importers for chicken and to ban exports of poultry may not be effective in handling the root cause of the shortage.
“Importers are reluctant to bring in poultry because it is more expensive overseas. Hence, the removal of the AP is not welcoming.
“To resolve the issue, the government must know the root cause,” said Sim, who is the PKR Bureau spokesman on agriculture and commodities.
Sim said that the main cause of the shortage is the unusually high demand for the recent Hari Raya Aidilfitri celebrations after two years of lockdowns.
The second reason is the production cost, which has gone up 100%, driven by the minimum wage revision upwards to RM1,500 from RM1,200 previously.
Thirdly, the controlled price of chicken, pegged at RM8.90, has gone into the 141st consecutive day.
“It is the longest in history and it has derailed the open market forces from functioning.
“All of such factors have combined to influence the producers of poultry to reduce production due to rising costs and the outcome is a shortage in supply.
“The government must know this before deciding on how best to resolve the issue,” said Sim. – The Vibes, May 24, 2022
