Look into possibility of cartels, urges Shafie, as Sabah sees price hikes in food items

KOTA KINABALU – Warisan president Datuk Seri Mohd Shafie Apdal is calling on the authorities to probe into the existence of business cartels raising the prices of some essential goods in Sabah.
 
In a statement today, he said the authorities have discovered a 30% hike in the price of chicken, while prices of fish and cooking oil have also increased. 
 
“In recent weeks, the media has reported the sudden increase in chicken prices.
 
“Checks by the Domestic, Trade and Consumer Affairs Ministry noted that chicken prices have increased by 30% and now, its prices are more than RM10 per kg.
 
“But the prices of fish have also increased significantly and, due to the higher prices, the sales of fish and other seafood have dropped by 80%.
 
“What is more worrying, the prices of cooking oil have also increased, reaching RM35 per 5kg bottle in June, from between RM20 and RM25 per bottle before,” he said.
 
Shafie said the inflation rate has also increased by 16.7%, putting a burden on the buying power of consumers.
 
The former Sabah chief minister said he is aware that the government has already taken action to curb the surge in prices, including by setting ceiling prices for chicken and fish.
 
On cooking oil, the government had reached a consensus with producers on August 1 for the retail price for palm cooking oil to remain at RM29.70.  
 
“The irony is that, for two months, consumers were burdened by the increased prices that were out of the government's control. 
 
“And probably, price manipulation has happened at the producer, distributor, wholesale and retail levels,” he said. 
 
Towards this end, Shafie said the government should probe the possibility of the existence of cartels and the indiscriminate manipulation of prices by scrupulous parties in trying to manage the rising prices of goods. 
 
Stressing the need for the government to penalise wrongdoers, he said the government should look at the European Union (EU) in terms of action against unscrupulous producers. 
 
He pointed out that the EU had issued €31.6 million (RM155 million) in fines to several vegetable producers for price-fixing, adding that the higher penalty will serve as a deterrent to would-be offenders. 
 
“Price fixing by cartels can also happen along the distribution line. This includes hoarding stockpiles. 
 
“Like in 2005, I have instructed the armed forces to distribute rice, flour and sugar for rural folk in Sabah, Sarawak, Terengganu and Kedah when I was the domestic trade and consumer affairs minister then.
 
“The move was to curb manipulation by suppliers or middlemen raising prices, while, at the same time, reducing the prices of such goods in these states.” 
 
Shafie said price-fixing can also happen at the retail level where operators pass down the cost of higher rentals to consumers by raising the prices of the items in their stores. – The Vibes, September 20, 2021