PUTRAJAYA: Among ways to prevent unnecessary price hikes is to strengthen existing mechanisms for price monitoring and enforcement, says a consumer rights activist.
Federation of Malaysian Consumers Associations (Fomca) secretary-general Saravanan Thambirajah said this is one of the most immediate actions the government could take.
โWhen prices of essential items are being hiked up arbitrarily or without justification, there must be swift investigation and enforcement by the authorities.
โThe Domestic Trade and Cost of Living Ministryโs call for consumer associations to serve as its eyes and ears is a good initiative, but it will only be effective if reports from the ground lead to real action,โ he said.
Saravanan added that the government must focus on transparency to prevent the public from becoming victims of inflated prices or being wrongly taxed.
โWhen consumers know the market price of goods, they are in a better position to make informed choices.
โFomca has begun receiving feedback from consumers regarding price hikes associated with the recent increase in the SST (sales and service tax) from 6% to 8%.
โConsumers are still confused about which products and services are affected.
โThis confusion creates a fertile ground for abuse. Some traders may raise prices unjustifiably, citing the tax increase as the reason, even for items that are not actually taxed,โ he added.
Saravanan said Fomcaโs role was not only to inform and educate consumers on their rights but also to relay their concerns to the relevant enforcement bodies.
โFor the mechanism to work well, consistent and visible enforcement is needed to ensure traders do not misuse the sales tax revision as a pretext for profiteering,โ said Saravanan.
Similarly, Malaysian Consumer Friendly Organisation vice-president Azlin Othman said the government should monitor logistics costs as well as establish a more balanced tax policy and make regular inspections at business premises.
โQuick and consistent action is important to protect consumers and maintain price stability,โ said Azlin.
Consumersโ Association of Penang president Mohideen Abdul Kadeer said stronger enforcement was needed instead of waiting at the last moment for consumers to lodge complaints of getting cheated.
โThe government should set up help desks or mobile units to proactively receive feedback.
โTraders who cheat consumers must be brought to court and face the maximum penalty,โ added Mohideen.
