‘Lay down the law to combat rising prices’
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PETALING JAYA: Robust enforcement against profiteering and cartel activities is critical in managing the cost of living, says the Federation of Malaysian Consumers Associations.
Chief executive officer Dr Saravanan Thambirajah said a centralised database is also necessary to monitor prices.
“This will enable more effective, data-driven policymaking and intervention.
“Enforcement against unfair practices is critical in managing the cost-of-living issue,” he said, adding that subsidies must be targeted at those who are deserving of them.
Saravanan said annual regular wage reviews would also ensure that the income of workers was aligned with inflation.
“The current minimum wage is inadequate to address the financial pressures faced by many Malaysians, particularly those in the lower and middle-income groups,” he added.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the labour market ecosystem has to be re-examined.
“If we look at the percentage of unionised workers, the ratio has been on the declining trend.
“In 1982, the ratio stood at 11.3% and it went down to 9.3% in 1992, progressively lower to 8.2% in 2002 and last year, the figure was merely 6.2%.
Banks urged to waive RM1 ATM withdrawal fee
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PETALING JAYA: The Federation of Malaysian Consumers Associations (Fomca) has called on banks to absorb the RM1 charge for each interbank withdrawal instead of forcing customers to pay, especially since they are making huge profits.
Financial reports for 2023 showed that among Malaysia’s top four banks by asset size, Maybank’s net profits grew by 17.5% to RM9.35 billion, CIMB’s rose by 28.3% to RM6.98 billion, Public Bank’s increased by 9% to RM6.6 billion and RHB Bank’s expanded by 4.8% to RM2.81 billion.
According to Bank Negara Malaysia’s (BNM) 2024 Payment Statistics: Payment Channels, Malaysians use ATMs twice a month on average.
Assuming that all transactions involve interbank cash withdrawals, each individual would be charged RM24 per year just because their bank’s ATM is not available near them. This does not take into account customers who use multiple banks.
Fomca CEO Saravanan Thambirajah said while the net profits of banks are a positive sign that the financial industry and economy are healthy, imposing the fee is unfair, especially when viewed from the perspective of vulnerable populations, even if it is just RM1 per transaction.
“A common concern is that the fee disproportionately affects low-income earners and rural folk, who rely on cash transactions and need to withdraw small amounts of money frequently.
“When their bank’s ATM is not available, they are forced to use the ATMs of other banks, incurring the RM1 fee each time.”
Fomca urges the PM's office to set up a division to oversee medical insurers and private hospitals
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KUALA LUMPUR: The Federation of Malaysian Consumers Associations (Fomca) chief executive officer T. Saravanan has called for a regulatory division to be set up under the Prime Minister's Department to oversee medical insurers and private hospitals.
Saravanan said Fomca does not agree with the interim measures of limiting premium increases to 10 per cent cap, and for healthcare providers to contribute to a fund aimed at reducing insurance costs.
"We disagree with the 10 per cent cap. It should be capped at five or six per cent… We need a social healthcare financing system that will assist the public.
"We do not agree with the proposal to contribute to a fund aimed at making medical insurance more affordable. That would be a waste of money as it would still be industry-controlled and biased.
"What we need is a concrete solution for Malaysia's healthcare system," he said.
Saravanan said the temporary pause on premium increases for the elderly does not tackle the core issue, lack of transparency and governance surrounding medical inflation.
He said that currently there is no proper governance by the relevant agencies, including insurance companies and private hospitals.
Bank Negara's measures on insurance premiums merely temporary, core issues unaddressed, says Fomca
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PETALING JAYA: Bank Negara's measures to address rising premiums for medical and health insurance or takaful (MHIT) products will provide temporary relief to consumers but it leaves some core issues unaddressed, says the Federation of Malaysian Consumers Associations (Fomca).
"We express grave concerns over Bank Negara's recent announcement on the MHIT premium increase cap of no more than 10% over a three-year period.
"While this interim measure aims to provide temporary relief to consumers, it fails to address the root causes of the escalating costs in private healthcare and the structural issues within the MHIT sector," it said.
Fomca said the proposed cap on premium increases was merely a stop-gap measure that masks the larger issue of excessive profits driven by insufficient government control and regulation of the private healthcare sector.
It urged the government to have greater responsibility in regulating the private healthcare sector, including pricing mechanisms for healthcare services and insurance premiums.
"It is high time that medical insurance policies are regulated by the government to ensure that it meets the needs of the population rather than serving as a profit-centric product for insurers," it added.
Extend Good Samaritan Act to cover food aid for the poor and hungry - Fomca
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GEORGE TOWN: The proposed Good Samaritan Act is a timely intervention as the role of first responders is crucial in times of emergency, the Federation of Malaysian Consumers Association (Fomca) said.
Fomca vice-president Datuk Indrani Thuraisingham said this was especially so with the high numbers of those suffering from non-communicable diseases including cardiovascular disease, as well as the floods affecting vulnerable communities as a result of climate change.
She, however, called for the proposed law to be extended to cover food aid for the poor and hungry by addressing legal concerns that often hindered individuals, organisations or businesses from donating food.
"The law should explicitly state that individuals, non-profits, and businesses (like restaurants, grocery stores and caterers) donating food in good faith will not be held liable for harm caused by the donated food, as long as the food is safe at the time of donation.
"It should also state that there is no gross negligence, intentional misconduct, or reckless disregard for safety.
"This can encourage more donations by alleviating the fear of lawsuits," she told the New Straits Times.
Indrani said the definition of the Good Samaritan Act should be expanded to include food aid as a recognised act of compassion under the law, alongside traditional emergency assistance.
Read more: Extend Good Samaritan Act to cover food aid for the poor and hungry - Fomca
Rising complaints over faulty, fraudulent second-hand car sales
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KUALA LUMPUR: The National Consumer Complaint Centre (NCCC) has received thousands of complaints about second-hand vehicles, including engine damage and water leakages that cause coolant fluid to mix with engine oil.
As a result, the vehicle's engine needs to be replaced at a high cost, but second-hand car sellers refuse to take responsibility for the damage.
NCCC senior manager Saral James Maniam said these were common complaints from victims who had purchased problematic cars.
As a partner of the Federation of Malaysian Consumers Associations (Fomca), the centre helps consumers resolve issues by acting as intermediaries between consumers and traders.
"Not only do buyers end up with 'defective' vehicles, but some victims purchase cars that were previously involved in serious accidents or have tampered odometers showing lower mileage," she said in a Metro Ahad report.
"Victims feel cheated when they are forced to bear repair costs. Their claims are often ignored by the sellers."
Read more: Rising complaints over faulty, fraudulent second-hand car sales
KAMI MEMERLUKAN SOKONGAN RAKYAT MALAYSIA UNTUK MENANDATANGAN PETISYEN SERUAN SEGERA UNTUK CAMPUR TANGAN REGULATORI TERHADAP KENAIKAN PREMIUM INSURANS DAN PENUBUHAN JAWATANKUASA KAWALSELIA SYARIKAT INSURANCE DAN HOSPITAL SWASTA DI BAWAH PMO
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KAMI MEMERLUKAN SOKONGAN RAKYAT MALAYSIA UNTUK MENANDATANGANI PETISYEN
CAMPUR TANGAN REGULATORI SEGERA TERHADAP KENAIKAN PREMIUM INSURANS DAN PENUBUHAN JAWATANKUASA KAWALSELIA BAGI SYARIKAT INSURANS DAN HOSPITAL SWASTA DI BAWAH PMO
Kepada Gabenor Bank Negara Malaysia,
Kami, rakyat Malaysia, mewakili suara pengguna yang terjejas akibat kenaikan premium insurans yang tidak wajar dan tidak dapat diterima. Kenaikan ini memberi beban besar kepada ramai pengguna, terutamanya golongan berpendapatan sederhana dan rendah yang kini berdepan dengan kos sara hidup yang semakin meningkat. Keputusan ini dibuat pada ketika industri insurans melaporkan keuntungan besar, menimbulkan persoalan sama ada kenaikan ini benar-benar diperlukan dan wajar.
Hospital swasta terus beroperasi dengan pengawasan minimum, menyebabkan kenaikan kos rawatan perubatan yang tidak terkawal. Inflasi perubatan ini memberi kesan langsung terhadap kenaikan premium insurans, dan tanpa pembaharuan sistematik, beban ini diletakkan secara tidak adil ke atas pengguna. Di samping itu, terdapat keperluan mendesak untuk mempertimbangkan pelaksanaan Insurans Kesihatan Sosial bagi meringankan kos sara hidup dan memastikan penjagaan kesihatan kekal boleh diakses dan mampu milik untuk semua. Oleh itu, kami menyeru Bank Negara Malaysia (BNM) untuk mengambil tindakan segera bagi melindungi kepentingan pengguna dan memastikan kenaikan premium ini adalah telus dan wajar.
KEPRIHATINAN KAMI
Kami ingin menyatakan kebimbangan kami mengenai perkara berikut:
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Ketelusan dan Justifikasi: Pengguna tidak diberikan maklumat atau data yang mencukupi mengenai kenaikan premium ini. Tanpa ketelusan, kami tidak dapat menilai keadilan keputusan ini.
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Kesan Terhadap Kemampuan dan Perlindungan Insurans: Kenaikan premium akan menjadikan perlindungan insurans asas tidak mampu milik bagi ramai rakyat Malaysia. Ini boleh menyebabkan ramai kehilangan perlindungan penting, terutamanya golongan rentan seperti pesara dan keluarga berpendapatan tunggal.
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Beban Kewangan Tambahan: Kenaikan premium ini akan membebankan lagi pengguna yang sudah terhimpit oleh inflasi yang memberi kesan kepada perbelanjaan isi rumah. Kami bimbang peningkatan ini akan mengurangkan kuasa beli pengguna dan menjejaskan kestabilan kewangan ramai keluarga.
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Pengambilan Keuntungan yang Tidak Dikawal dalam Sektor Kesihatan: Hospital swasta menyumbang secara signifikan kepada inflasi perubatan yang tidak terkawal. Industri insurans tidak seharusnya bergantung kepada kos yang melambung ini sebagai alasan untuk menaikkan premium. Tambahan pula, ganjaran mewah dan bonus besar yang diberikan oleh syarikat insurans menunjukkan bahawa kenaikan ini bukan disebabkan oleh keperluan tetapi bertujuan mengekalkan keuntungan yang besar.
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Risiko Kejatuhan Sistem Insurans Perubatan: Jika insurans menjadi tidak mampu milik, ramai akan bergantung kepada penjagaan kesihatan awam. Ini akan membebankan sistem yang sudah sedia tegang, mengurangkan aksesibiliti dan kualiti penjagaan kesihatan di negara ini.
CADANGAN KAMI
Kami, yang menandatangani petisyen ini, mencadangkan langkah-langkah berikut kepada Bank Negara Malaysia dan pihak berkaitan:
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Penubuhan Jawatankuasa di Bawah PMO:
Sebuah jawatankuasa khas di bawah Pejabat Perdana Menteri (PMO) perlu dibentuk, melibatkan pihak berkepentingan bebas, untuk menyiasat dakwaan inflasi perubatan yang sering digunakan oleh industri sebagai alasan kenaikan premium. Jawatankuasa ini juga perlu mempunyai kuasa untuk menyemak dan meluluskan semua kenaikan premium insurans pada masa hadapan berdasarkan justifikasi kukuh. Selain itu, jawatankuasa ini perlu diberi mandat untuk mengawal caj hospital swasta dan menyiasat tuntutan berlebihan oleh hospital atau syarikat insurans. -
Pelaksanaan Insurans Kesihatan Sosial:
Sistem Insurans Kesihatan Sosial perlu diperkenalkan sebagai penyelesaian mampan untuk mengurangkan pergantungan terhadap insurans swasta dan menangani kos sara hidup. Sistem ini akan:- Membahagikan tanggungjawab pendanaan antara majikan, pekerja, dan subsidi kerajaan.
- Memastikan akses yang adil kepada perkhidmatan penjagaan kesihatan asas untuk semua rakyat Malaysia.
- Memberikan kelegaan kewangan kepada golongan berpendapatan rendah dan sederhana yang terkesan oleh kos perubatan yang meningkat.
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Ketelusan Penuh oleh Syarikat Insurans:
Penyedia insurans mesti mendedahkan justifikasi aktuari terperinci bagi kenaikan premium. Rundingan awam perlu dijalankan bagi memastikan suara pengguna didengari. -
Pengawalseliaan Hospital Swasta:
Garis panduan harga perlu dilaksanakan dalam sektor penjagaan kesihatan swasta untuk mengawal amalan inflasi dan memastikan kos adalah adil serta telus. -
Moratorium ke atas Kenaikan Premium:
Perlaksanaan had sementara ke atas kenaikan premium sehingga kajian menyeluruh terhadap struktur kos insurans selesai. -
Kempen Kesedaran Awam:
Melancarkan kempen untuk mendidik pengguna tentang hak mereka sebagai pengguna insurans dan memastikan mereka mempunyai maklumat mencukupi untuk membuat keputusan yang bijak.
KENAPA ANDA PERLU MENANDATANGANI PETISYEN INI
Kami percaya bahawa sistem insurans yang adil dan mampu milik adalah hak setiap rakyat Malaysia. Kami tidak boleh berdiam diri apabila industri yang sepatutnya melindungi rakyat terus mengambil keuntungan secara tidak terkawal dan membebankan pengguna. Kegagalan untuk bertindak sekarang akan menyebabkan lebih ramai rakyat kehilangan perlindungan insurans yang penting, sekali gus menjejaskan keselamatan kesihatan dan kewangan negara.
Dengan menandatangani petisyen ini, anda:
- Menunjukkan bantahan terhadap kenaikan premium insurans yang tidak wajar.
- Menyuarakan sokongan anda untuk ketelusan dan akauntabiliti yang lebih besar dalam industri insurans.
- Menyokong usaha untuk mengekalkan insurans yang mampu milik dan boleh diakses untuk semua rakyat Malaysia, termasuk melalui Insurans Kesihatan Sosial.
Kami berhasrat untuk mengumpulkan sekurang-kurangnya 100,000 tandatangan bagi menyampaikan mesej ini kepada Bank Negara Malaysia. Tandatangan ini akan diserahkan kepada BNM sebagai bukti sokongan awam terhadap reformasi segera dalam industri insurans.
SERTAI KAMI DALAM PERJUANGAN INI
FOMCA juga mengalu-alukan mana-mana industri atau organisasi masyarakat sivil yang ingin menyokong dan bekerjasama dalam usaha ini. Kerjasama dan tindakan kolektif amat penting untuk mencapai perubahan yang bermakna dan melindungi hak pengguna. Kami berjuang untuk semua rakyat Malaysia dan memerlukan sokongan anda untuk berjaya.
SERTAI DAN TANDATANGANI SEKARANG
Marilah kita bersatu menyuarakan bantahan terhadap kenaikan premium insurans yang tidak wajar. Tandatangan anda penting untuk menunjukkan kepada Bank Negara Malaysia bahawa rakyat Malaysia menolak amalan yang menjejaskan keselamatan kewangan dan penjagaan kesihatan kita.
Tandatangani petisyen ini untuk menyokong pengguna Malaysia!
https://www.surveymonkey.com/r/Sign_this_petition_to_support_Malaysian_consumers
WE NEED THE SUPPORT OF MALAYSIANS TO SIGN THIS PETITION
URGENT REGULATORY INTERVENTION AGAINST INSURANCE PREMIUM INCREASES AND THE ESTABLISHMENT OF A REGULATORY COMMITTEE FOR INSURANCE COMPANIES AND PRIVATE HOSPITALS UNDER THE PMO
To the Governor of Bank Negara Malaysia,
We, the people of Malaysia, represent the voice of consumers affected by unjustified and unacceptable increases in insurance premiums. These increases place a heavy burden on many consumers, especially middle- and lower-income groups already struggling with the rising cost of living. This decision has been made at a time when the insurance industry has reported significant profits, raising questions about whether these increases are genuinely necessary and justified.
Private hospitals continue to operate with minimal oversight, leading to uncontrolled increases in medical treatment costs. This medical inflation directly impacts the rising insurance premiums, and without systematic reforms, the burden is unfairly placed on consumers. In addition, there is an urgent need to consider the introduction of Social Health Insurance to alleviate the cost of living and ensure healthcare remains accessible and affordable for all. Therefore, we call upon Bank Negara Malaysia (BNM) to take immediate action to protect the interests of consumers and ensure that these premium increases are transparent and justified.
OUR CONCERNS
We express our concerns about the following:
- Transparency and Justification: Consumers are not provided with adequate information or data regarding these premium increases. Without transparency, we cannot assess the fairness of this decision.
- Impact on Affordability and Insurance Coverage: The increase in premiums will make basic insurance coverage unaffordable for many Malaysians. This could lead to many losing essential coverage, especially vulnerable groups such as retirees and single-income families.
- Additional Financial Burden: These premium increases will further burden consumers already strained by inflation impacting household expenses. We are concerned that this increase will reduce consumers' purchasing power and jeopardize the financial stability of many families.
- Uncontrolled Profit-Taking in the Healthcare Sector: Private hospitals contribute significantly to uncontrolled medical inflation. The insurance industry should not rely on these inflated costs as a reason for raising premiums. Furthermore, extravagant rewards and large bonuses given by insurance companies indicate that these increases are not driven by necessity but rather by the intent to maintain significant profits.
- Risk of Collapse of the Medical Insurance System: If insurance becomes unaffordable, many will depend on public healthcare. This will strain an already overwhelmed system, reducing accessibility and quality of healthcare in the country.
OUR PROPOSALS
We, the signatories of this petition, propose the following measures to Bank Negara Malaysia and related authorities:
- Establishment of a Committee Under the PMO:
A special committee under the Prime Minister’s Office (PMO) should be formed, involving independent stakeholders, to investigate claims of medical inflation often cited by the industry as a reason for premium increases. This committee must also have the authority to review and approve all future medical insurance premium increases based on solid justification. Furthermore, this committee should be mandated to regulate private hospital charges and investigate overclaims made by hospitals or insurance companies. The committee must also investigate the root causes of medical inflation and pricing practices within the insurance industry independently, involving stakeholders such as BNM, consumer advocacy groups, healthcare professionals, and economists. - Introduction of Social Health Insurance (Insurans Kesihatan Sosial):
A Social Health Insurance system should be introduced as a sustainable solution to reduce dependency on private insurance and address the cost of living. This system would:- Share funding responsibilities among employers, employees, and government subsidies.
- Ensure equitable access to essential healthcare services for all Malaysians.
- Provide financial relief to middle- and lower-income groups burdened by rising medical costs.
- Full Transparency by Insurance Companies:
Insurance providers must disclose detailed actuarial justifications for premium increases. Public consultations must be conducted to ensure that consumer voices are heard. - Regulation of Private Hospitals:
Implement pricing guidelines for services in private healthcare to curb inflationary practices and ensure costs are fair and transparent. - Introduce a Moratorium on Premium Increases:
Implement a freeze on premium increases until a comprehensive review of insurance cost structures is completed. - Public Awareness Campaign:
Launch a campaign to educate the public about their rights as insurance consumers and ensure they have sufficient information to make informed decisions.
WHY YOU SHOULD SIGN THIS PETITION
We believe that a fair and affordable insurance system is the right of every Malaysian. We cannot remain silent when an industry that is supposed to protect the people continues to take uncontrolled profits and burden consumers. Failure to act now will lead to more Malaysians losing essential insurance coverage, jeopardizing national health and financial security.
By signing this petition, you:
- Show your opposition to unjustified insurance premium increases.
- Express your support for greater transparency and accountability within the insurance industry.
- Support efforts to maintain affordable and accessible insurance for all Malaysians, including through Social Health Insurance.
We aim to collect at least 100,000 signatures to deliver this message to Bank Negara Malaysia. These signatures will be submitted to BNM alongside this petition as evidence of public support for urgent reforms in the insurance industry.
JOIN US IN THIS FIGHT
FOMCA also welcomes any industry or civil society organizations willing to support and collaborate in this effort. Cooperation and collective action are essential to achieving meaningful change and protecting consumer rights. We fight for all Malaysians and need your support to succeed.
JOIN AND SIGN NOW
Let us unite to voice our opposition to unjustified insurance premium increases. Your signature is crucial to show Bank Negara Malaysia that Malaysians reject practices that jeopardize our financial security and healthcare.
Sign this petition to support Malaysian consumers!
Fomca warns public on surge in fake house rental agent scams
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KUALA LUMPUR: The Federation of Malaysian Consumers Associations (Fomca) today warned the public about a growing trend of scams involving fake house rental agents.
Its secretary-general, Dr T. Saravanan, said the fraudsters are pretending to be agents to scam potential tenants, including foreign students, by showing rental properties, collecting down payments and then disappearing.
"Many foreign students have fallen prey to these scams due to their unfamiliarity with local rental practices and lack of access to verified information. The scammers often present themselves as professional agents, using fake business cards, online advertisements and social media profiles to appear credible.
"They arrange property viewings, often of units they do not have legal access to, creating a sense of urgency by claiming high demand for the property. Victims are then pressured to make immediate down payments to secure the unit, only for the agents to vanish after receiving the funds," he said in a statement.
Read more: Fomca warns public on surge in fake house rental agent scams
FOMCA’s Marimuthu slams Ombudsman for Financial Services for claims delays
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THE Federation of Malaysian Consumers Associations (FOMCA) has criticised the delays in settling medical dispute claims by the Ombudsman for Financial Services (OFS).
Its president Datuk Marimuthu Nadason said the long wait erodes the trust and confidence of financial services consumers in OFS’s consumer dispute resolution system.
“The OFS was set up to provide fair treatment to consumers. Not all complaints from the financial services sector are accepted by OFS, hence no opportunity for the consumer to be heard,” he told The Health newspaper.
Marimuthu said the most serious complaint is the long waiting time for a financial service complaint to be resolved. According to the OFS 2022 report, more than 36% of cases were pending for over six months.
He was responding to an article in the March-April issue of The Health on the timeline the OFS took in settling medical claims and financial disputes. Following the article, feedback from readers indicated that it could take more than a year for a dispute to be settled.
Formerly known as the Financial Mediation Bureau, the OFS is supposed to provide independent, fair, efficient and effective dispute resolution to financial consumers. Its service is free for all financial consumers (individuals and SMEs).
Read more: FOMCA’s Marimuthu slams Ombudsman for Financial Services for claims delays
Announce targeted petrol subsidies early, says Fomca
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On the other hand, an economist advises against it, saying an early announcement may cause panic buying.
T Saravanan, CEO of the Federation of Malaysian Consumers Associations (Fomca), said prices will rise no matter when the government makes the announcement.
“As a result of the widespread discussions on targeted subsidies for petrol, businesses are already waiting in earnest for its implementation,” he told FMT.
“Whether (the government) announces it earlier or later, prices will definitely rise,” he said.
“Somehow or other, businesses will see additional costs and these will be transferred to consumers,” he added.
Read more: Announce targeted petrol subsidies early, says Fomca
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