PETALING JAYA: Consumers may not see prices dropping just yet, but there is good news coming for those wanting more value for their money.

Although prices of goods have not dipped in tandem with decreasing fuel prices, more stores are climbing on the price reduction bandwagon encouraged by the government. Smaller retail shops are following suit.

Most importantly, consumer associations say that the much-awaited reduction in prices is a certainty, with only the clearance of market stockpiles left in its way.

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said mini-markets and smaller retail shops, such as those under the Felda scheme, had joined the ministry's "price reduction campaign".

More hypermarkets are launching cost-saving campaigns. They include Giant where Shahrir yesterday launched its latest move to slash prices of another 500 items.
Shahrir said he was buoyed by the good response from markets and shops in support of the nationwide campaign, adding that manufacturers, suppliers, wholesalers and retailers had understood the importance of cutting prices.

"So far, we've had good support and cooperation because they understand that this is a way to ensure economic growth.

"If prices are not brought down, consumers won't purchase. The economy will be affected. So these people realise that this is the way to sustain consumer demand."

Giant was the first to heed the ministry's call by slashing the prices of 1,200 grocery products five weeks ago. It was followed by Tesco, Carrefour and The Store.

The Consumers Association of Penang has also said that it was only a matter of time before prices of cooked food items dropped, with the delay due to the practice of hoarding by markets and stores.

The past week had seen complaints coming in from consumers and traders who were unhappy about prices not budging despite the staggered cuts to petrol and fuel prices since August.

Shahrir said the ministry had since been able to get the participation of smaller mini-markets, which were able to reduce prices because they had the same business models and bought in bulk.

"For instance, shops under the Felda D'Mart scheme are also supporting the price reduction campaign. So we have a wide range of retailers on this campaign, including chain stores."

With the government putting more money into consumers' pockets, he said it was the right time for smaller shops, such as family-owned outlets and sundry shops, to reinvent themselves and attract consumers looking for the best prices.

He cited coffee shops that evolved into popular "kopitiam", saying the time was ripe for these smaller outfits to challenge the modern retail centre phenomenon by offering more options and keeping prices low.

Despite options available to the price-savvy customer, Shahrir said the government was unable to do anything about retailers who refused to reduce prices of goods outside the list of price-controlled items.

"We do not have the power to take action against those who do not want to reduce prices. The success of this campaign depends on the cooperation of those who will."

On whether the price of cooking oil would come down, the minister said this would eventually happen with the forces of supply and demand.

"For now, we are waiting for crude palm oil prices to decrease further. Only then can we decide. With less demand for palm oil, and with increasing stock, I do not discount the possibility that cooking oil prices will come down."