Eateries allowed to increase food prices by only 0.1%

STAR, 4 September 2013

PETALING JAYA: Eateries which increase food prices after the fuel price hike will face stern action, says Domestic Trade, Cooperatives and Consumerism Minister Datuk Hasan Malek.

He said that unfair price increases were defined by sudden hikes and prices that were not in line with the market norm.

“If your neighbourhood mamak restaurant is selling roti canai at RM1.50 when a week ago it was RM1, you should call the ministry. Another suspicious sign is when shops refuse to exhibit price tags.

“Consumers must report in with the exact facts so we can act immediately. Anything more than a 0.1% hike in prices will be looked into,” he said yesterday.

Hasan urged consumers who encountered unfair profiteering to call the ministry hotline at 1-800-886-800, or email in to e-aduan@kpdnkk.gov.my.

He said those found to have in­­creased prices without permission could be charged under the Price Control and Anti-Profiteering Act 2010.

Separately, the Land Public Trans­port Commission (SPAD) warned taxi drivers against raising fares.

SPAD chairman Tan Sri Syed Hamid Albar advised taxi firms to wait for the commission’s impact study on the fuel price hikes before it issues its recommendations.

On how soon the price review for public transport would be implemented, Syed Hamid said: “Don’t ask me for an exact date but we are working hard on it.”

He said requests for increase in fares by public transport companies were justifiable.

“But SPAD has to look into the quantum and how it would affect the public.”

RON95 petrol, diesel up 20 sen from midnight

STAR, 2 September 2013

PUTRAJAYA: Price for RON95 petrol and diesel will be raised by 20 sen per liter from midnight.

The move is aimed at reducing the fiscal deficit, thus saving RM1.1bil per year for the Government, said Prime Minister Datuk Seri Najib Tun Razak.

Najib said despite the increase, the government would still be subsidising 63 sen for RON 95 petrol.

"The subsidy rationalisation will be carried out in many stages. The first is that the price of RON95 and diesel will be increased by 20 sen per litre from 12.01am Tuesday," Najib told a press conference after chairing a meeting of the Fiscal Policy Committee (FPC) on Monday.

The new prices for RON95 will be RM2.10 per litre and RM2.00 for diesel.

To address the burden on low-income and vulnerable groups in the fuel subsidy rationalization, Najib said the quantum for the 1Malaysia People's Aid (BR1M) will be increased in the upcoming national budget announcement.

 Najib also promised that a comprehensive "social safety net" and further fiscal measures would be introduced in the 2014 Budget.

He said the FPC has reaffirmed the Government's commitment to achieve a fiscal deficit target of about 3% of gross domestic product by 2015 and to attain a balanced budget by 2020.

"The moderation in the current account of the balance of payments (BOP), coupled with continued fiscal deficits pose medium-term risks to the economy.

"Currently, our subsidy system benefits everyone, including the higher income group and foreigners.

"Thus, we need to move to a more targeted subsidy system that caters to vulnerable groups," Najib said.

Other measures announced by Najib include giving priority to public sector projects with low-import content and high-multiplier effects.

"Projects with high import components will be sequenced accordingly, so as not to adversely impact the BOP position.

"However, the Mass Rapid Transport (MRT) Lines 1, 2, and 3 will proceed as planned.

"The Southern Corridor High-Speed Rail project is still under negotiations," he said.

Over the medium to longer term, Najib said the Government will diversify the country's export markets and tourism would be given greater focus in the upcoming Visit Malaysia Year 2014.

Rise in chicken price, a case of foul play?

Malaysian Insider, 13 July 2013

The Agriculture and Agro-based Industry Ministry has not ruled out that the sharp rise in poultry prices was due to price manipulation by retailers as the farm price remains unchanged at RM5 per kg while the supply is adequate.

Its minister Datuk Seri Ismail Sabri Yaakob said the retail prices shot up to between RM8.50 and RM9 per kg although the ministry has fixed the ceiling price at RM7.80 per kg.

He said the demand for chicken was normally 1.2 million birds a day but increased to 2.2 million to 2.4 million a day nationwide during Ramadan through Aidilfitri.

The government has opened applications for chicken import permits to address the problem and theoretically dumping will reduce the price of goods, he told a news conference to announce Tekun Nasional winning the Best Innovation in Financial Services award in Karlsruhe, Germany.

He was commenting on a report that chicken prices have risen dramatically in many states for the past two weeks. He said there was an increase in demand for local chicken two months ago as China stopped exporting poultry following the H7N9 outbreak, but it has lifted the ban as the situation has returned to normal.

Meanwhile, the Domestic Trade, Cooperatives and Consumerism Ministry has urged all quarters not to make any speculation or claim that chicken prices have soared without any concrete evidence.

Its minister Datuk Hasan Malek said the ceiling prices of chicken at the farm, wholesale and retail levels were subject to the Price Control and Anti-Profiteering Act 2011, which must be abided by retailers.

"Provide us with the proof and we will act on it. Action will be taken against unscrupulous traders if the claim is true," he told reporters after visiting a Ramadan bazaar in Presint 2 in Putrajaya yesterday.

Hasan said the price control scheme for the Hari Raya festive season will be enforced early next month.

Meanwhile, the Muslim Consumers Association of Malaysia (PPIM) has urged a boycott on chicken until the prices drop below the ceiling price.

Its chief activist Datuk Nadzim Johan said a boycott would push down the prices as suppliers and retailers would have to lower prices if demand plummeted.

A survey around Kuala Lumpur and Selangor found that supermarkets were selling chicken at about RM7.50 per kg, but the prices in farmers' markets shot up to between RM8.50 and RM9 per kg.

Housewife Siti Rohani Yaakob, 47, expressed hope that the government will take action to protect the welfare of the lower income group against errant traders who took advantage of the festive season to raise prices of goods, including chicken.

Rogayah Ahmad, 64, a mother of eight, said although the price hike was a norm during Ramadan and other festive seasons, she has no choice but to still buy these goods to cater for her family.

Police pensioner Abdul Aziz Yusuf, 64, said he realised chicken prices have soared since April, but did not expect them to reach RM9 per kg during Ramadan. - Bernama, July 13, 2013.

Diesel subsidy cuts felt by housewives, restaurateurs

By Melissa Chi

Malaysian Insider, June 23, 2011

KUALA LUMPUR, June 23 — All through the Pudu wet market, one of the biggest in the Klang Valley, one can hear customers complaining that prices of goods are shooting up while sellers try to convince them that they are not profiting as well since the start of 2011.

This conversation is repeated across the country from Perlis to Sabah, reflecting the 2.9 per cent hike in the Consumer Price Index (CPI) for the first four months of 2011 but more since June when Putrajaya cut diesel subsidies for hauliers and trawlers, adding to the price of basic food items and other goods.

People buying fish at the Pudu wet market. Customers are complaining that prices of almost everything have gone up. — Picture by Choo Choy May

Restaurant owner Kak Mai told The Malaysian Insider that when prices of chicken and fish go up, she can’t raise the prices at her restaurant.

“I’ll just have to make less, what to do,” the 53-year-old said, pointing out that siakap fish (barramundi) has gone up from RM20 to RM24 per kg in the past few days, although she expects prices to come back down.

Fifty-six-year-old Mrs Cheong , who operates at a school canteen, was buying fish in bulk when approached by The Malaysian Insider.

“I sell at a school canteen, after signing the contract, the price is fixed and I cannot hike the price at all,” she said, adding that her profit went down from 20 per cent to 10 per cent in the past few weeks.

Until May 31, 2011, C2 trawler operators received a subsidy of 28,000l to 30,000l of diesel per month at RM1.25 per litre. Diesel super subsidies were removed for the C2 fishing trawlers and nine other logistic-related groups this month.

Those operating trawlers in the C2 category or 30 nautical miles offshore have been on strike since June 11 over the June 1 diesel price hike from RM1.25 to RM1.80 per litre.

Prime Minister Datuk Seri Najib Razak launched the Kedai Rakyat 1 Malaysia (KR1M) no-frills grocery shops yesterday in a move to mitigate rising prices of dry goods in the Klang Valley.

But the prices in the wet markets are subject to volatility.

Mohd Rosli Osman, 43, who was shopping for his family, pointed out that kerapu (grouper) went from RM9 to RM12 per kg and ikan bawal (pomfret) from RM8 to RM15.

Chan Soon Hoong, 48, who has been selling fish for 30 years, said the government should continue to provide the diesel subsidy.

“It costs twice as much now for almost anything,” he said.

Yuslizal, 42, another fishmonger at the market, agreed.

“The government should continue to subsidise. If the prices are too high, consumers don’t want to buy. Many of my customers complain about the price hike and they don’t know the reason why,” he said, adding that with less sales his profit margin has grown smaller, sometimes he just breaks even.

Rudi, 28, who has been operating at the market for three years, sells only freshwater fish such as pacu, rohu and tilapia.

He said the prices of his fish have also gone up as without the diesel subsidy transportation costs have gone up as well.

“Luckily I just sell freshwater fish because sea fish are way more expensive,” he said.

Mohd Erfan, 29, who sells chicken next to Rudi’s stall, said the price of chicken went up 30 sen continuously over the past three days.

As he was chopping up pieces of chicken, he explained that regular customers who run restaurants have cut down their orders from 10 birds to six per order.

He sells about 200kg to 250kg of chicken per day.

However, when The Malaysian Insider spoke to vegetable sellers, they said that there was no hike in their prices. Most of their vegetables come from Cameron Highlands.

The Najib administration has to take a razor to its subsidy bill despite surging inflation which hit a two-year high of 3.2 per cent in April as it attempts to trim the budget deficit down to 5.4 per cent after it hit a two-decade high of 7 per cent in 2009.

For the first four months of the year when the CPI averaged 2.9 per cent up, the three indices that rose highest was Transport (+ 4.6 per cent); Food and Non-Alcoholic Beverages (+ 4.5 per cent) and Housing, Water, Electricity, Gas and Other Fuels (+ 1.5 per cent).

Putrajaya said the June 1 subsidy cuts would save RM659.30 million, and had to be done due to the global increase in fuel prices since the start of 2011. Coincidentally, it brought down the market float price of RON97 premium petrol by 10 sen to RM2.80 a litre this month when global prices eased.

Agriculture Ministry Urged To Intervene In Chicken Price Issue

June 16, 2009

PUTRAJAYA, June 16 (Bernama) -- The Agriculture and Agro-based Industry Ministry will be asked to intervene to resolve problems on chicken prices as all matters pertaining to the Chicken Rearers Association falls under its jurisdiction.

Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri Yaakub said to that effect, the ministry would study the need for the setting up of a joint committee to expedite efforts to solve the problems.

He said a committee to determine chicken prices, chaired by the ministry's secretary-general, could not be held because representatives from the Chicken Rearers Association refused to attend the meeting.

"The Chicken Rearers Association is under the jurisdiction of the Agriculture and Agro based Industry Ministry. They don't feel guilty if they don't attend the meeting because they are not under the Domestic Trade, Cooperative and Consumerism Ministry.

"I'll discuss with the ministry's secretary-general and the Agriculture Ministry about this," he told a press conference after a pre-launch of the Malaysia Consumers Day here Tuesday.

On the Consumers' Day celebration, he said it would be themed, "Satu Suara" (One Voice), which he said was the key word to solving problems on consumerism.

"The people cannot hope for the government to use its powers to protect their interests because as consumers, they are more powerful that the laws that we have.

"For example prices of goods, the government cannot control the prices because the Price Control Act only allows it to fix the ceiling price for goods which have been gazetted as controlled items," he added.

He said traders would be forced to give in to consumers' demands to reduce price if consumers were united.

In another development, Ismail Sabri said the ministry would study the possibility of stationing its officers at public locations nationwide so that immediate actions could be taken if there were complaints.

He said it would be conducted with the assistance of non-governmental organisations and consumers associations in the respective locations.

The Consumers Day celebration, to be held on July 24 to 26, will be launched by Prime Minister Datuk Seri Najib Tun Razak in Kuantan.

-- BERNAMA

Shahrir: Don’t give petrol as prize

STAR, September 8, 2008

JOHOR BARU: Private companies have been requested to stop giving out petrol as a prize as it is subsidised by the Government.

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said although he understood the rationale behind the prize, petrol was not a suitable gift when companies were trying to promote their products.

“I hope that oil and car companies will stop giving out free petrol as each litre of petrol is subsidised with money from taxpayers,” he told reporters after handing out bubur lambuk at Masjid Jamek in Bandar Baru Uda yesterday.

Shahrir distributing bubur lambuk at Masjid Jamek on Sunday.

Shahrir said he had already informed his officers to pass the message to the relevant companies and that a “reasonable” deadline would be given.

“Those that have already announced their contests can finish them or they may be sued for misrepresentation, but must desist after that.

“Other companies should not attempt to offer such prizes in future,” he said.

Shahrir pointed out that action could also be taken against the companies as petrol was under the list of controlled goods.

“We probably won’t take immediate action, as these companies probably are not doing it intentionally,” he said.