Consumers feel heat of surging prices, says association

The main factor for the hardship is the supply shortage while prices kept on going up, said Covas president Michael Tiong. – Bernama photo

KUCHING (May 21): Consumers in general are now feeling the heat from the surging prices of goods in the market, said Consumers Voice Association of Sarawak (Covas).

Its president Michael Tiong also identified who would be facing financial burden and constraint because of the price hike during this difficult time.

“Who suffers the most? Everybody suffers including the T20 group but the group who would be suffering the most are those with income less than RM2,000 a month or the B40 group. Their disposable income could only cover their basic needs such as loans, rentals, utilities, study fees, transport, and food and beverages while their quality of life is being compromised,” Tiong said when contacted yesterday.

Michael Tiong

He said the main factor for the hardship is the supply shortage while prices kept on going up.

The increase in freight charges automatically led to inland haulage and thereafter the land transport cost which is factored in the sale price of goods, be it wholesale or retail, were also the causes, he said.

Greedy distributors or middlemen also contributed to the high cost of living, he added.

He said the government had to continue giving subsidies to ensure the B40 and M40 groups would be able to cope.

“More mini expos throughout Sarawak offering essential food items including canned food and other household products should be held regularly apart from making sure that goods offered are cheaper and also making sure that logistics and distribution are well managed at the lowest cost possible,” he said.

Sarawak Business Federation (SBF) secretary general Jonathan Chai also shared his views on the numerous factors that caused the recent surge in the prices of goods.

The rise in petrol prices, freight charges, exchange rate (US dollar) and the disruption of the supply chain due to the pandemic and the Russia-Ukraine conflict, were some of the causes, he said.

Jonathan Chai

“There has been outcries from importers on the sudden massive rise in freight charges. For example, the freight charge for a 40-footer container from China is about two folds of that charged in pre-Covid time, and worse still, the supply chain has also been severely disrupted and considerable delay for delivery of orders seemed to be the normal phenomenon in trade these days.

“Also, the earlier than expected revision of interest rate by Bank Negara Malaysia last week may also exert more inflationary pressure on the market,” he added.

The anticipated increase in minimum wage, which came into effect this month, would escalate the cost of doing business as additional cost would hike the prices of goods too, Chai said.

“At the end, the adverse impact of inflation will be passed on to the consumers resulting in their spending power grossly affected. To ease the burden of the B40 group, the government needs to come up with more effective measures to curb the rise of inflation.

“While subsidies will have a direct impact in stabilising the prices of certain essential items like petrol, cooking oil and sugar, stringent enforcement and supervision must be put in place to avoid any potential leakage and abuse.

“We (SBF) would like to appeal to the government to engage and have sufficient consultation with the stakeholders before implementing any policy that would escalate the costs of business operations especially when businesses are already struggling to cope with the challenges posed by the pandemic and the deteriorating economy,” said Chai.

from Borneo Post Online https://bit.ly/3lrqGtM
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