KUALA LUMPUR: Apart from the nation's frontliners, staff from the Domestic Trade and Consumer Affairs Ministry have also been working non-stop throughout the Movement Control Order (MCO) period.
Minster Datuk Seri Alexander Nanta Linggi shares some insights into how the ministry works towards not just ensuring that there is an adequate supply of food items, but also guaranteeing that they are sold at reasonable prices to avoid profiteering, especially essential items such as cooking oil.
Question: Issues have recently cropped up concerning the hike in prices of essential items. What are the measures that have and will be taken by the ministry to ensure that the public are not adversely impacted by price hikes?
Answer: An increase in the price of an item is not necessarily an offence. However, there is possible cause for action to be taken in accordance with the Price Control and Anti-Profiteering Regulations (Mechanism to Determine Unreasonably High Profits) 2018.
Action will be taken against business owners under the same Act if they are found guilty of profiteering. Since the rollout of MCO 2.0 on Jan 13, a total of 193 notices under Section 21 have been issued to business owners to monitor the prices of goods in the market.
Q: The Chinese New Year celebration is around the corner. What are the steps being taken to control the increase in the price of goods?
A: The ministry does not control the price of goods except for selected items, the prices of which are fixed during some festive seasons. This is done by setting the ceiling prices at the farm, wholesale and retail levels. This is one of the ways to ensure that traders do not indiscriminately raise prices.
Chinese New Year is one of the six festive seasons included. Anyone caught selling items more than the ceiling price will be subjected to stern action.
Q: On the issue of cooking oil, what are some of the facts that consumers should know regarding palm oil?
A: The government helps the people secure cooking oil at stable prices by subsidising it, enabling it to be sold at RM2.50 per kg. These are sold in plastic polybags and are available in grocery shops and major supermarkets. The government allocates a large quantity for this, approximately 60,000 metric tonnes each month.
Non-subsidised cooking oil, meanwhile, is sold in bottles ranging from 2kg to 5kg. The price of this type of cooking oil is determined by supply and demand. Nevertheless, the ministry continues to monitor the situation to ensure that retailers do not set unreasonable prices.
Q: Why has the retail price of cooking oil gone up during the MCO?
A: From June until now, the Malaysian Palm Oil Board (MPOB) has reported an upward trend in the production of crude palm oil (CPO). The prices have gone up due to a variety of reasons such as an increase in global demand which led to a stock shortage in the country. The rise in prices of other types of cooking oil in the international market has also made palm oil a popular choice compared with soya and rapeseed oil. Climate change has also affected the production of palm oil.
The price of unsubsidised cooking oil depends on CPO, whose pricing is in turn determined by supply and demand. Complaints on the price of unsubsidised cooking oil is due to the rise in CPO prices. The price peaked in excess of RM3,000 per metric tonne in December 2020. This, in turn, placed pressure on local market prices, with the exception of subsidised cooking oil, which still retails at RM2.50.
Q: Have any retailers been caught raising the price of cooking oil throughout the MCO?
A: None so far. However, six notices under Section 21 of the Price Control and Anti-Profiteering Act (AKHAP) 2011 have been issued to traders to obtain more information on the matter. I urge consumers to compare prices before buying and not to focus on brands but quality and value.
Q: What actions can be taken against traders who raise the price of cooking oil?
A: We will issue notices and an investigation will be conducted for profiteering. Those found guilty can face action under Section 14(1) of the same act. Corporations can be fined a maximum of RM500,000 for the first offence and RM1 million for subsequent offences.
Other offenders can be fined a maximum of RM100,000 for the first offence or a maximum of three years jail or both. For subsequent offences, they can be fined a maximum of RM250,000 or a maximum of five years' imprisonment or both.
Q: How can KPDNHEP ensure that the price of the 1kg package cooking oil does not increase?
A: There are no plans to withdraw the subsidy. We guarantee that the price will not go up unless the allotted quota has been used up.
Q: What is the quota in terms of budget allocation and metric tonne given for subsidised cooking oil?
A: Based on the 2021 Budget allocation, the subsidy is between RM150 million and RM200 million. The government hopes that this additional allocation can reduce the people's cost of living .
As an additional measure, the government has also implemented distribution control for cooking oil based on the population ratio in all states.
Q: How can KPDNHEP ensure that only those who are eligible can buy the 1kg packaged cooking oil?
A: On Jan 19 last year, the ministry decided to allow retailers to impose a purchase limit of three packets per consumer.
This is to ensure that more people can obtain the cooking oil. This only applies to the 1kg polybag packet cooking oil, priced at RM2.50 per kg.
Q: What is your advice to consumers?
A: Consumers should take note of the two types of cooking oil in the market, namely subsidised and non-subsidised.
Alert the ministry if the subsidised cooking oil is sold at more than RM2.50 per kg. They can also alert us if they know of attempts to smuggle subsidised cooking oil across the borders.
Those buying unsubsidised cooking oil can use the Price Catcher app to compare prices. Be a smart user and check prices before buying. Emphasise quality over brand.
Also, refrain from panic buying or excessive purchases to ensure that there is enough for everyone.