KUALA LUMPUR – The issue surrounding the ceiling price of Covid-19 self-test kits took another turn yesterday, after Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi gave his assurance that it will be revised next week.
This comes no more than a day after his deputy, Datuk Rosol Wahid, told the Dewan Rakyat that the ministry will leave it to market forces to determine the retail rates of the medical devices.
Speaking at a press conference after the tabling of Budget 2022 last night, Alexander said the new rate was determined following studies and engagements with various quarters, including the Health Ministry.
“If previously, I had said the price will be reduced in December, the good news is that we don’t have to wait until December,” he said in Parliament.
“We can reduce it this November, so I will be announcing it next week. I will issue a press statement.”
The minister said the price reduction took into consideration the interests of the public.
Currently, self-test kits retail at RM19.90 and the wholesale price is at RM16, which were fixed by the government on September 5.
On Thursday, while winding up his speech on the Trade Descriptions Act 1972 amendments, Rosol said the ministry was given a commitment by kit suppliers that they will ensure prices of their products are reduced by month-end.
“We were assured by some that the kits will be sold below RM10. This is what we have been waiting for. In view of this, the ministry no longer needs to set the ceiling or floor price. We will allow the free market to determine the cost,” he said.
Rosol said the government had initially planned to cap the price of the devices at between RM13 and RM15 per kit, before changing its mind after being assured of a lower rate by manufacturers.
Previously on September 25, Rosol said an announcement on new ceiling prices will be made public soon – following pressure from various quarters.
Two days later, he again expressed in a statement the government’s intention to lower the price of the kits, which he said can be expected to be announced earlier than its initial plan in December.
Alexander said the ministry is waiting another week before making an announcement on the revised prices to observe if retailers will be selling the kits at a lower rate than the one intended by the government.
He said with more manufacturers importing their kits into the country, this could drive prices further down.
“We don’t want to put a price where we consider it reasonable, but retailers are selling them at much lower prices, then take advantage of the higher ceiling price and raise it,” he added. – The Vibes, October 30, 2021
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