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.

Govt yet to decide on power tariff review

STAR, 12 July 2013

KUALA LUMPUR: The Government has yet to decide on the electricity tariff review.

Energy, Green Technology and Water Minister Datuk Seri DrMaximus Johnity Ongkili said there was a need to look at the cost of fuel, gas and other inputs which have been increasing. “There is also a need to look at how Tenaga Nasional Bhd and Petroliam Nasional Bhd can absorb the increase,” he told a media briefing here yesterday.

He said there should be a mechanism for fuel price increases, not only when one party had to bear the cost, be it the Government, utility companies or consumers.

On the water issue in Selangor, Ongkili said what was available in the state was insufficient for its own use, as well as that of the Federal Territory and Putrajaya.

Ongkili said there was a need to work together with the Selangor state government to resolve the issue. — Bernama

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.

Higher electricity tariff next year?

The Edge Financial Daily, 9 July 2013

KUALA LUMPUR: Malaysians may have to pay more for electricity as Tenaga Nasional Bhd (TNB) is set to resume the fuel cost pass-through (FCPT) mechanism next year.

Deputy Energy, Green Technology and Water Minister Datuk Seri Mahdzir Khalid told Parliament yesterday that TNB will start implementing the mechanism next year to more efficiently regulate the electricity tariff for users.

The FCPT mechanism allows any changes in fuel cost to be channelled to users through tariff rates implemented by the government. Any additional fuel cost incurred due to higher fuel prices will be reflected by a higher electricity tariff and any reduction or savings will be returned to consumers.

FCPT has been adopted by utilities in many countries such as Singapore, Thailand, the Philippines, Japan, the US and Europe. It will be assessed every six months in tandem with the six-monthly natural gas price revision and taking into account the prevailing market coal and oil prices.

“With the implementation of FCPT, users will be given an incentive if power is used economically and a penalty would incur if power wastage is detected. “This programme will be implemented based on the country’s economic performance. Users’ cost of living will also be taken into account,” Mahdzir said in Parliament in reply to a question from Liang Teck Meng (BN-Simpang Renggam).

Mahdzir said the FCPT mechanism is a component in the incentive base regulation (IBR) programme. Although the mechanism was first introduced in mid-2011 and was supposed to be reviewed every six months to reflect movements in fuel prices, TNB has only revised its power tariff once.

The last adjustment in 2011 reflected the increase in gas price, which jumped from RM10.70 per million British thermal units (mmBTU) to RM13.70 per mmBTU, while the coal price is still assumed at US$85 (RM234) per tonne. The rates were revised to partly cover for the increase in electricity cost of supply since the last base tariff review in June 2006.

The last round of adjustments saw an average tariff increase of 7.12% following the 28% upward revision of the natural gas price. There was also an average 2% increase to partly cover the increase of electricity cost of supply since June 2006. Industrial and commercial consumers saw an average increase of 8.35%.

Domestic or residential consumers whose monthly consumption falls within the “lifeline band” of up to 200 kWhsaw no tariff increase as rates remained unchanged at a highly subsidised rate of 21.8 sen per kWh or approximately RM44 per month. The last tariff review of the lifeline band was done in 1997.

Consumers using 300kWh per month and below saw tariffs maintained at 33.4 sen per kWh. Those who use more than 300kWh per month will have to pay a rate of at least 40 sen per kWh.

According to TNB, about 75% of the household consumers, or 4.4 million people, use less than 300 kWh so they were not affected by the tariff increase.

Additionally, Mahdzir said consumers who use below 200kwh a month are subsidised, while payment from those with usage below RM20 is waived.

In April 2011, a 1% charge was imposed as feed-in-tariff for the renewal energy fund.

TNB is still paying RM13.70 per mmBTU for natural gas, which has been unchanged since June 2011. Gas remains the largest component of TNB’s fuel generation mix followed by coal and oil.

Recently, the power sector was badly hit by a gas shortage. TNB, in particular, saw an additional RM3.07 billion in fuel costs to burn distillates as an alternative fuel from Jan 1, 2010 to Oct 31, 2011.

SPAD slams bus fare move

STAR, 16 June 2013

KUALA LUMPUR: The fare for express buses should just have a surcharge of not more than 10% during the Hari Raya season and tickets should be up for sale from July 1, said Land Public Transport Commission (SPAD).

Its chief executive officer Mohd Nur Kamal said the usual 10% surcharge would not be exclusive to additional buses sourced out by bus operators but also applicable to the existing fleet as well.

He was responding to Pan Malaysian Bus Operators Association's (PMBOA) request seeking a 30% increase in bus fares and its reluctance to sell advance tickets for July and August until they received the Government's confirmation over the rate hike.

He chided the association for taking advantage of the Hari Raya season “to put a gun to our head with public interest at ransom, forcing us to decide on the fare review in a matter of weeks”.

“I think this seemed somewhat orchestrated to create panic among the public and put pressure on us,” he said in an interview.

He said PMBOA had raised the issue of the rate increase via a letter dated May 28 to SPAD.

Mohd Nur said SPAD spoke to several industry players and they were not on board with the increase as not all industry players were members of PMBOA.

“In fact, they are ready to sell the tickets as normal. We also found out that there was communication in the form of phone calls and text messages from certain parties to these other companies not to sell the tickets,” he said.

“This is against the Competition Act 2010 that came into force early last year. This has become a major problem and we are in communication with Malaysia Competition Commission (MyCC) to make a report and get to the bottom of this.

“If this is going to be the first landmark case so be it. SPAD is not here to make sure some companies maintain their profit level but we are here to protect public interest,” he said.

Mohd Nur said SPAD had been cooperative in engaging with the industry for improvement.

“We are actually in the midst of reviewing all land public transport operations that include light rail transit, stage buses, taxis and chartered vehicles in the aspects of efficiency, asset utilisation, productivity, competition as well as fares, but it's not a simple process that can be decided in a matter of weeks.” he said.

Five states yet to join national water asset body

January 31, 2013

SEREMBAN, Jan 31 — Five states have yet to join Pengurusan Aset Air Berhad (PAAB), said its chairman Tan Sri Mohd Tajol Rosli Ghazali. 

They are Pahang, Kelantan, Terengganu, Selangor and Kedah. 

“Information and briefing on the advantages of joining PAAB, which manages the development of water for state governments, have been presented to all state governments. But until now, these states are still reluctant to sign up with PAAB. 

“PAAB is prepared to implement all water development, including infrastructure in the state as long as PAAB gets full support from state governments,” he told reporters after the signing of an agreement on the handing over of water asset rights by the Negri Sembilan government to PAAB here yesterday.

Also present were Negri Sembilan Mentri Besar Datuk Seri Mohamad Hasan and PAAB chief executive officer Datuk Ahmad Faizal Abdul Rahman. — Bernama