Price Increases Causing Great Hardship To The People

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MALAYSIAN consumers are facing price hikes daily as even products that have remained on the racks for months suddenly have a new higher price tag.
Retailers, wholesalers, supermarkets and manufacturers never had it so good before especially from an indifferent government that seems to have lost control of retail prices that are spiking the cost of living.
The B40 and the M40 income groups appear to be the most affected by the price increases of household essentials. Now the Christmas and year end shopping season could hike prices even further.
From December to January annual bonuses will be paid to workers while civil servants will receive their salary increments. This will be followed by the general shopping spree that begins for Christmas, New Year and the Chinese New year.
During this festive season larger amounts of money will be in circulation causing inflation and price increases that will spiral beyond control unless the government does something drastic to ease prices.
(Image: Bernama)Recently, I saw a video of president-elect Donald Trump shopping in a supermarket, and he expressed his shock at the exorbitant prices of a wide range of essentials and has promised to “make America affordable again!”
I only hope that our Prime Minister Datuk Seri Anwar Ibrahim or his two deputies or other ministers will do something similar in our local supermarkets and genuinely feel how price increases are hurting most Malaysians.
The government’s Bantuan Sara Hidup (BSH) hand-outs are now a drop in the ocean and has no subsidising effect for poor consumers.
Nowadays, hardly anyone brings up the issue of price increases as it has become normal and it looks like the people have given up hope that things will change.
Due to the present rainy spell and floods prices of a large number of consumer essentials like vegetables, fish and fruits could see a rise with the producers blaming the weather.
Due to the floods having damaged infrastructure, houses, people’s livelihood and agriculture the government will have to spend hundreds of millions of ringgit (if not more) for rehabilitation and repairs and this will affect the assistance and subsidy schemes next year for the lower income groups.
There is no point blaming the Ukraine and the Middle Eastern conflicts for a global increase in a wide variety of products and merchandise. The prices of local products have skyrocketed also and it has nothing to do with imports or conflicts.
Local businesses are now going for profit maximisation, and retailers have resorted to profiteering to the hilt.
The government is unable to rein in these exploiters in any way even by way of enforcement. Producers have found new ways to exploit consumers such as reducing the amount or contents for the same price, reducing quality, puffing up packets to appear larger, giving discounts and offers that is really a deceptive enticement, and other tricks.
In restaurants and eateries it is even worse with runaway prices and the reason for this is the high rentals, levies for foreign workers and the Malaysian habit of eating out.
Even the operators of government-built and -subsidised food courts are quoting the same price levels as the high rental paying restaurateur. The price list in the eateries features previous, rather than current, prices and no itemised bill is issued.
The government has to issue a directive on the display of compulsory price list boards as well as itemised billing and this can help consumers.
(Image: Malay Mail)One can nowadays discern the obvious fact that sellers simply do not care about the buyers, customers and consumers – it is on a take it or leave it basis.
A lot of retailers are long-time businessmen who have amassed wealth and they can afford to hold on to the high prices come what may.
Additionally there are too many retail outlets and too many foreign workers in the country who increase demand for basic essentials that pushes up price levels.
The businessmen who benefit and profit from foreign workers are not from the B40. However, the B40 is paying the price for the presence and competition of millions of foreign workers.
The government has to consider a mass deportation scheme similar to the one proposed in the US if the illegals are to be reduced, and foreign remittances curbed to help the economy.
The government to date has still not found a way to help the B40, excluding the foreigners, through assistance schemes such as a subsidy card which will enable the target groups to benefit from the billions of ringgit spent on subsidies.
A scheme like this will be a boon to the poor. It is no point talking about Malaysia heading towards becoming a high-income country for a small minority when millions in the B40 and M40 groups are stuck with incomes that do not allow these groups to cope with the current cost of living or surviving. 
V. Thomas is a FocusM viewer.
The views expressed are solely of the author and do not necessarily reflect those of MMKtT. 
- Focus Malaysia.

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