Cartel Middlemen The Root Cause Of Inflation Says Economist

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An economist says cartel-linked middlemen do not allow farmers to distribute their products directly to the market. (Bernama pic)PETALING JAYA: Cartels and unscrupulous traders acting as middlemen are the root cause of inflation in Malaysia, claims an economist.
Manokaran Mottain, the director of Malaysia Venture Capital Management (MAVCAP), said these middlemen did not allow farmers to distribute their products directly to the market.
“There are agents who go to villages and collect items (to be resold) from farmers at very cheap prices,” he said, adding that this increased the price of products for end consumers.
He also said some of these cartels had close ties with politicians, who could then shape policy in their favour.
Despite years of talk about removing these middlemen, Manokaran said no action had been taken.
He suggested that the authorities establish an agency that could serve as a link between consumers and retailers and producers.
“By establishing this agency, prices will be controlled, benefiting both consumers and farmers.”
On inflation and shortages, he said policymakers were also responsible for the current economic situation.
“Policymakers are always changing their policies, halfway through the game they stop and change the policy,” he explained.
Manokaran said as the B40 community was most adversely affected by inflation, they must demand improvements and should consider giving the authorities an ultimatum.
“It is the low-income group that will suffer. So, they must voice out that improvement is needed, or else they will not vote.”
He also called for unity among politicians, as he believed GE15 would likely not result in any party or coalition winning an absolute majority to form the government.
“I hope that there will be stability, and also that we get the right ministers, with the right qualifications.” - FMT

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