Pengguna perihatin

PUTRAJAYA (Jan 23, 2008): Severely challenged by spiralling global oil prices that has driven national subsidies to beyond RM40 billion, the government today announced it has established a high-powered National Price Council (NPC) to ensure the people get sufficient supply of essential goods and at stable prices.

Deputy Prime Minister Datuk Seri Najib Abdul Razak told a news conference here the council will be chaired by Prime Minister Datuk Seri Abdullah Ahmad Badawi and represented by a number of relevant ministries.

The ministries are Domestic Trade and Consumer Affairs (secretariat); International Trade and Industry; Agriculture and Agro-based Industries; Plantation Industries and Commodities; Finance; Energy, Water and Communications; and Transport.

An expert advisory committee chaired by former executive director of Malaysian Institute of Economic Research Datuk Dr Kamal Salih will assist the council in deliberations and to give its input on measures that will be taken.

Other members in the committee include representatives from the National Chamber of Commerce and Industry, Federation of Malaysian Manufacturers, Federation of Malaysian Consumer Associations (Fomca) and Malaysian Trade Union Congress (MTUC).

Najib said the NPC has agreed in principle on several initiatives. They are:
> National stockpiling of selected essential goods like cooking oil, flour, rice and sugar to help stabilise supply and prices. The advisory committee will help draw up a list of goods to be stockpiled.

> The set up of a National Call Centre that will operate 24 hours to gather feedback from consumers on unfair and unusual price increases, difficulty in getting supply of goods and related problems. There will be a toll-free line for the people to use which will be announced once details have been finalised.

Najib, who is the deputy chairman of the council, said details of these initatives and other steps will be announced after the inaugural meeting of the NPC expected to be held soon after Abdullah returns from the World Economic Forum in Davos, Switzerland.

Abdullah is expected back on Jan 28.

The continuing increase in prices of consumer items, aside from those which are subsidised, has been a challenge to the government since it allowed several rounds of fuel price increases in a bid to manage a burgeoning subsidy purse that kept prices of fuel and other essential items and services low. Leakages through smuggling also posed big problems.

Although the Consumer Price Index, which indicates the rate of inflation, is at 2.4% - thanks to the subsidies - prices of items other than those in the CPI's basket of goods have yielded complaints from consumers used to stable prices. It is this dissatisfaction - and public safety issues - which the opposition parties are tapping into for votes as the country gears for the general election.

The new CPI is expected to be announced tomorrow.

Asked if the NPC's work will result in an increase in the number of goods placed under price control, Najib said it is up to the council if this is necessary to deal with situations when they arise.

He said the NPC is a comprehensive step to ensure the consumer and the rakyat enjoy stable prices and is a follow up to the affirmative actions taken by the government to reduce inflation rate.

"The NPC is a reasonable effort because we have monitored the people's reaction and we found that many feel that comprehensive action needs to be taken to control the price of goods," he said.

Najib added the low inflation rate in the country was a reflection of the government's positive efforts.

"However, people feel that more comprehensive action must be taken. Hence the need for a NPC and the creation of a national stockpile," he said.

Kamal, when approached after the announcement, said the committee would conduct studies, including on the oil price increases.

"We will make our recommendations then because this issue affects subsidies in the long run. The subject of subsidies also has to be studied carefully as it is a very complex issue," he said.

Kamal said the committee will also look into fuel becoming a part of the national stockpile.

Form a Price Commission instead, says Fomca
PETALING JAYA (Jan 23, 2008): In welcoming the government's new initiative to help ensure stable supply and prices of consumer goods, the national consumer movement has counter-proposed the formation of an independent commission to handle pricing issues.

Federation of Malaysian Consumers Associations (Fomca) president Datuk Marimuthu Nadason said a price commission will have the independent authority to undertake review of prices of goods based on public feedback from time to time, and will be fully managed by civil society.

He said Fomca had proposed the price commission 10 years ago.

Marimuthu was asked for his comments on Deputy Prime Minister Datuk Seri Najib Abdul Razak's announcement today of the establishment of a National Price Council (NPC), chaired by the prime minister, which will come out with measures to stabilise supply and prices of essential goods.

Among the steps it would take is the national stockpiling of such goods, and the set up of a national call centre to get public feedback.

Arguing for a commission, Marimuthu said: "If manufacturers want a price hike, they can submit their petition to the commission and the commission will advertise to get the people's feedback.

"After that, the commission will decide on a win-win situation for the manufacturers and consumers," he said in a phone interview.

On the stockpiling, Marimuthu said the government can set up a government-linked-company to do this.

"This company can keep the goods for four to six months and whenever a supply shortage happens, the goods can be used to overcome the insufficient supply problem," he said.

Marimuthu said that because of the subsidy on cooking oil, the market price is so low that it encouraged smuggling.

He proposed that subsidy be given to the poor people in the form of cash, as in a welfare state.

"This is the best way of subsidy and the welfare department can play the role of disbursing the money to the people's accounts monthly," he added.

Pahang Consumers Associations president Muhammad Sha'ani Abdullah also supported the proposal of a commission, saying that there is already a National Consumer Advisory Council.

He said a commission would have the force of law, and suppliers will be obliged to answer to it.