Is The Government Just Playing Monopoly


 
With the government currently pushing for more competition and hence, fewer monopolies in Malaysia, (Puspakom and Touch & Go are recent examples), it is natural to ask why so many monopolies were created in the first place.
Monopolies emerge for many reasons. For example the TNB monopoly in power distribution is a “natural monopoly” because it is too expensive to build two competitive electricity distribution systems. This justifies one provider.
Some, such as the Bernas rice monopoly, are created by policy. There is no real economic reason why many companies could not supply rice.
Some, like T&G, emerged from corporate restructuring. Originally it was created by PLUS to collect toll which was controlled by the government and used for highway maintenance. It worked very well.
Then it was sold and it now competes with other e-wallets for other purposes but still has the toll monopoly.
Other monopolies emerged from technology such as the Microsoft operating system but they have to allow companies access to the code so they can provide packages.
This has been forced by law in the EU for example but the market also forces it because the MS OS would not be as popular if you could not use all packages with it.
Pharmaceutical companies have patent monopolies over medicines to allow them to charge higher prices to recover R&D costs.
After the patent expires the medicines can be produced as generics by other companies and sold at lower prices.
Ads by KioskedThe problem is that sometimes the patent lasts too long and people cannot afford life-saving medicines until it expires.
To break up monopolies, either you remove their exclusive licences or you break down the barriers to entry so others can compete.
This is what will happen with Puspakom and should be done with Bernas and Pharmaniaga.
There are many examples where removing monopolies lowers prices for consumers.
In the UK, breaking up monopolies in electricity and gas supplies through privatisation helped keep prices down but they still have to be regulated.
Breaking down monopolies for airline access to flight routes and airports has allowed low-cost carriers into the market and kept fares down through market forces all around the world.
Ads by KioskedFor T&G, allowing toll payments by credit cards breaks down their monopoly. T&G will still survive but prices may not come down because they are set by the government.
It is easy to break up monopolies. In those cases where they are due to exclusive licences, you just remove it like Puspakom.
If the monopoly is due to patents it is harder because patents have IP protection. You have to shorten the patent life or legislate to allow access.
The taxi monopolies were broken up by disruptive technologies in e-hailing by Grab and Uber. Here you just allow market entry by prohibiting anti-competition activities and introducing competition law.
In the US this is called anti-trust legislation.
Professional monopolies such as the Malaysian Medical Council (MMC), Bar Council or Malaysian Institute of Accountants require changes in law to remove their exclusive licensing rights.
Ads by KioskedAllowing any doctor to practise with an accredited degree for example will end the MMC monopoly and solve the current contract doctor crisis in the Malaysian healthcare system.
Despite this, some monopolies can be successful if they serve a public interest such as TNB but they need to be regulated.
Regulation keeps TNB tariffs down and allows everyone access to electricity. It is a major social benefit.
So the government will successfully break up most monopolies in Malaysia because they mostly exist due to exclusive licences which can be revoked by the government but this will be a long haul. - FMT
The views expressed are those of the writer and do not necessarily reflect those of MMKtT.


Artikel ini hanyalah simpanan cache dari url asal penulis yang berkebarangkalian sudah terlalu lama atau sudah dibuang :

http://malaysiansmustknowthetruth.blogspot.com/2023/04/is-government-just-playing-monopoly.html

Kempen Promosi dan Iklan
Kami memerlukan jasa baik anda untuk menyokong kempen pengiklanan dalam website kami. Serba sedikit anda telah membantu kami untuk mengekalkan servis percuma aggregating ini kepada semua.

Anda juga boleh memberikan sumbangan anda kepada kami dengan menghubungi kami di sini
Ismail Sabri Warns Unity Government That The Forced Marriage Is Breaking Up

Ismail Sabri Warns Unity Government That The Forced Marriage Is Breaking Up

papar berkaitan - pada 17/4/2023 - jumlah : 215 hits
Datuk Seri Ismail Sabri Yaakob Filepic The StarPETALING JAYA Forced marriages will not work if there is no mutual love between top leadership or at a grassroots level says Datuk Seri Ismail Sabri Yaakob The former prime minister said that c...
Gomen Kena Tendang Sekali Lagi The Rumours Just Dont Go Away

Gomen Kena Tendang Sekali Lagi The Rumours Just Dont Go Away

papar berkaitan - pada 4/5/2023 - jumlah : 204 hits
Johor Ruler concern at incessant reports re stability of gomenhigh hopes for political stability until today 222 MPs cannot get on same page not healthy for nation socially economically internationallyHow much longer must 30m people endure ...
Government Facing 6 Crucial State Elections Now Time To Focus On The Domestic Agenda

Government Facing 6 Crucial State Elections Now Time To Focus On The Domestic Agenda

papar berkaitan - pada 23/4/2023 - jumlah : 173 hits
With a number of bank collapses within the United States Europe heading into a recession and the move away from the US Dollar in international trade Malaysia must prepare for unstable economic times ahead Murray Hunter Pakatan Harapan Baris...
May June Parliament Meeting A Make Or Break Session For The Anwar S Unity Government

May June Parliament Meeting A Make Or Break Session For The Anwar S Unity Government

papar berkaitan - pada 24/4/2023 - jumlah : 182 hits
THE three week May June Dewan Rakyat proceedings will be a make and break session for Prime Minister Datuk Seri Anwar Ibrahim s unity government Will Malaysians enhance the hope for a national renaissance from the Anwar unity government aft...
A Scenario Of How The Anwar Government Could Fall

A Scenario Of How The Anwar Government Could Fall

papar berkaitan - pada 27/4/2023 - jumlah : 307 hits
There are no permanent friends or enemies in politics Murray Hunter Et tu Brute For political strategists it s always important to map out and play through different political scenarios that could potentially face the government Below is on...
Today Tomorrow Or The Day After

Today Tomorrow Or The Day After

papar berkaitan - pada 20/4/2023 - jumlah : 536 hits
Someone sent this to me This is the never ending perpetual problem And yet some folks want to show the way forward for the rest of the world Here it is You can hate me all you want but this needs to be said Surely Muslims are more advanced ...
Oppo Introduces The Limited Edition Reno8 Pro House Of The Dragon

Oppo Introduces The Limited Edition Reno8 Pro House Of The Dragon

papar berkaitan - pada 20/4/2023 - jumlah : 160 hits
House of the Dragon the prequel to Game of Thrones was a real hit on HBO While fans wait for the second season Oppo is releasing a smartphone that will really appeal to fans of the series The limited edition Oppo Reno8 Pro House of the Drag...
The Power Of Seo

The Power Of Seo

papar berkaitan - pada 20/4/2023 - jumlah : 223 hits
The Power of SEO Boosting Your Online Visibility and Traffic In the world of digital marketing search engine optimization is king It s the process of optimizing your website to rank higher in search engine results pages such as Google Bing ...
Rasa Masakan Korea Soondubu Jigae Beef Di Dubuyo

China S President To Host Official Dinner For Anwar

Drama One Cent Thief 2 Lakonan Syafiq Kyle Azira Shafinaz

I Bought A Toy Like Vape Online Mp Tells Dewan Chamber

Tip Mudah Santan Berketul Jadi Elok Semula Letak Sehelai Daun Ini Saja

Unlocking Savings Expert Tips For Finding Discounted Cigarettes In Australia

Kips Bay Decorator Show House Dallas 2024 An Exquisite Showcase Of Design

India Secebis Kenangan Di India Random Photos


echo '';
Biodata Terkini Penyanyi Illa Sabry Peserta Gegar Vaganza 2024 Musim 11 GV11

Info Dan Sinopsis Drama Berepisod Senyawa iQIYI Malaysia

Info Dan Sinopsis Drama Berepisod Project Projek Exit Astro Originals

Pelajari Asal Usul Nama Makhluk Seram Kisah Fiksyen Barat Yang Terkenal

10 Fakta Filem Kahar Kapla High Council Yang Ramai Tak Tahu Prekuel Drama Project Projek High Council


Kecantikan Puteri Tunggal Mawi Ekin Dipuji Sweetnya Cahaya Malaika Copy Paste Mawi

Janna Nick Menangis Rayu Henti Tanya Soal Zuriat Pernah Cuba Ivf Tapi Gagal

Hukum Solat Jenazah Dua Kali Oleh Orang Sama

Kajian Tentang Teknik Humblebrag Di Media Sosial

Kisah Care Giver

Building Dreams One Brick At A Time Legoland Malaysia Resort Welcomes Malaysia S First Master Model Builder