Thursday, March 30, 2023

Ministry warns of another round of price hike, in light of the new minimum wage of RM1,500

NewsMinistry warns of another round of price hike, in light of the...

The Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) has warned of another round of price hike following the recent announcement of increasing the minimum wage to RM1,500.

“We admit that there will be an increase in the price of the goods due to various factors, including Covid-19, transportation, the foreign exchange rate, the Russian-Ukraine war and also the floods,” the ministry’s Deputy Minister, Datuk Rosol Wahid said.

“Even the announcement of the new minimum wage of RM1,500 is feared to be another contributing factor.”

Source: TheSun

In the meantime, he also warned suppliers and traders against excessive price hikes and said the ministry will take stern action against those who are found guilty of profiteering.

Rosol said the ministry will investigate each and every case of excessive price increases thoroughly to prevent excessive profiteering activities by any parties.

“With regards to the price increase, there is no single way to curb the issue as it is a global phenomenon that affected the whole world. What the government can do is to subsidise the goods,” he said.

Rosol also said that 1,000 price monitoring officers will monitor business activities across the country.

Earlier, Utusan reported that bazaars Ramadan traders and traders associations in Kedah, Selangor, Perak dan Negeri Sembilan had stated that they will have to raise the prices of their menus to cover the cost of increasing goods.

However, Rosol reminded traders to be mindful and not to burden consumers or they will face being taken action under the Price Control and Anti-Profiteering Act (AKHAP) 2011.

What do you think about businesses’ justification for price hike? Share your thoughts in the comment section below!

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