KUALA LUMPUR – Umno information chief Isham Jalil has criticised Economy Minister Rafizi Ramli’s suggestion to consumers over their purchase practices, saying that it is difficult for people to visit different shops to buy necessities at reasonable prices.
According to Isham, consumers usually buy their necessities at the same store.
“We don’t go to check if the price of vegetables in the nearest store is the cheapest, we go to store A, (perhaps to buy) rice at store B.
“It’s not that in one day if we want to buy 10 items, we go to 10 stores. People don’t do that, even in theory, that’s what we can say,” he said in a video uploaded on his Facebook page yesterday.
He explained that consumers could compare prices in each store but in practice, many do not do so.
“It’s not like we go to Mydin for the cheapest rice, we then immediately take the car now to buy chicken, and then we buy bread at 7-Eleven.
“We don’t do that,” he said.
Instead, Isham urged the government to deal with micro issues including attracting many foreign investors to the country to strengthen the value of the ringgit.
He said it was important for the government to try to restore the confidence of foreign investors in addition to dealing with the increase in input costs – the rise in energy costs, such as petrol and electricity, as well as shop rental.
“Increase in loan costs, if the shopkeeper has to pay more to the bank, he needs to make a profit to pay the higher bank costs. That’s why I say shop prices with input of bank costs contribute to inflation.
“That’s what we have to look at first. Do not give recommendations on finding the cheapest store. No one does business like that. If he sells nasi lemak, for example, for RM1, the shop next door sells it for RM1.20 at the same volume.
“He always runs out, but after a while he (will) raise the price. So, the reality is that what is happening is not competition lowering prices. On paper, it’s like that but in real life, this doesn’t happen,” he added.
Isham’s remarks come after Rafizi had said food and beverages will continue to be sold at inflated rates as long as consumers keep choosing to support businesses that set exorbitant prices for their goods.
Speaking during a press conference in Putrajaya last Friday, Rafizi said that the culture of elastic supply-and-demand principles have yet to be adopted by citizens here, leading to traders being allowed to impose high prices on their products since customers continue to buy from them.
“Only if there is reduced demand will business operators have an incentive to control their prices.
“If lessened demand does not happen, then you can’t blame them (traders) for passing on (the additional charges) to consumers,” he said.
As such, the Pandan MP advised consumers to be more conscious of prices when purchasing items from the sector.
He noted that while the ministry will be doing its part to manage inflation rates, the people should opt for cheaper options to send a message to traders.
Rafizi also had said that while citizens are opposed to being told that their spending habits are contributing to inflation, it is a “politically explosive” reality that must be understood for the betterment of the economy.
“The public does not like to be told that the fact that it continues with its consumption habits is because consumers can still afford (goods at the current costs).
“However, hypothetically speaking from an economist perspective, if the demand has not gone down, then that means that prices are still okay,” he said. – The Vibes, December 26, 2022
