Disclaimer : Perpustakaan Tun Abdul Razak,UiTM
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Control price hikes before they spiral to exploitative levels
November 20, 2021 @ 4:03pm
LETTERS: The prices of construction materials are skyrocketing. The government needs to take note of this as the construction industry is a very wide-ranging business sector and its spillover effects will be seen if the hike in prices is not maintained at reasonable levels.
The hardware businesses, which like many other industries was affected by the lockdown and MCOs, now appear wanting to recoup their losses if not the profits foregone due to the pandemic.
If other commercial entities join the bandwagon, then the prices of a wide array of goods and services will follow suit and the people will be affected greatly on top of the socio-economic hardship brought about by the pandemic with job losses, reduced pay and closure of businesses.
Why should old stocks have new increased prices? One of the major issues in the post pandemic period is coping with the urge of businesses to recoup their losses.
Unlike the hardware businesses and some others, the workers and employees cannot recoup their losses in wages, salaries, overtime earnings and bonuses. Therefore, all businesses should show some restraints and not engage in exploitative price spirals that will compound the difficulties of the people.
Disclaimer : Perpustakaan Tun Abdul Razak,UiTM
This material may be protected under Malaysia Copyright Act which governs the making of photocopies or reproductions or copyrighted materials. You may use the digitized materials for private study, scholarship or research.
Prices even at the pre-pandemic time were already high, and to increase them is unjustifiable. It is time that the Consumer Price Index (CPI) reflected reality as incorrect or wrong statistics could delay action by the authorities or paint a wrong picture of the on-the-ground situation.
The government needs to conduct more surveys on a weekly basis to ascertain price increases and take appropriate action through enforcement and other measures.
The government can help by offering incentives and addressing the problems faced by specific industries including importing more agricultural produce to overcome the shortage of supplies brought about by various reasons.
Provide licence fee waivers, reduction in assessment rates and other reductions for the short term.
The government needs to compile a list of industries that are causing this short-term price increases and target them through better enforcement, incentives and assistance schemes.
Generally the multi-nationals, and big commercial operators do not raise prices wantonly as they would refer to the government for permission.
It is mainly the countless SMEs and micro-businesses that quickly raise prices at their whims and fancies.
The government's assistance schemes are helpful but price controls will be more beneficial for the consumers.
V. Thomas
Sg Buloh, Selangor
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times
