The bigger issue with face masks

There is intense debate about whether everyone should be wearing face masks even when they are well to prevent Covid-19 transmission.

Many are calling for authorities to recommend universal use of face masks.

People are already doing so but the obvious problem is availability as the whole world is scrambling to buy them. Thus the suggestion to use cloth face masks by the public who are symptom-free.

Many frontliners and healthcare workers still experience shortage of face masks in their daily work in fighting the pandemic. This is particularly worrying as they are our most critical line of defence.

There are massive ramifications if a healthcare worker is infected and unable to continue to provide care or, worse still, needs critical care themselves.

Each healthcare worker affected means less care for the public and diminishes the healthcare system’s ability to cope with the Covid-19 onslaught.

There are long lines of people outside pharmacies whenever fresh supplies of face masks are available. There are even people fighting over them. Many pharmacies put up signs that say ‘No face masks’. Online portals that offer such items have their stocks snapped up in hours. Many scam sellers surface and black market sales seem abundant, making the situation worse.

Doctors find their supplies depleted and some clinics have had to close simply because they can’t continue to see patients unprotected.

Face masks and personal protection equipment can mean life and death for some of our most vulnerable and weak in the community. It can mean the pandemic continuing to spread unabated, or our economy and healthcare system collapsing.

The government fixed the price of three-ply face masks at 80 sen per piece and resulted in severe shortage. Subsequently, it raised the ceiling price to RM2 and, a week ago, reduced it to RM1.50.

This flip flop policy will not alleviate the situation in the short and long term and may threaten our healthcare system with severe consequences.

China is the “factory of the world” for face masks and local producers also rely on the country for their raw materials.

When many nations bid for supplies or vie for raw materials, prices will naturally increase to even multiple-fold and, in many instances, supply will go to the highest bidder.

We can put a ceiling price for all we want but if it is below the global price, and with so many bidders, we will get none or very little.

It’s paradoxical that fixing the price for face masks implies disallowing free market forces but yet the supply is dictated by free market prices and offered to the highest global bidder.

Malaysian may face a long-term shortage of these life-saving masks as supply may continue to go to many other countries who are able to acquire them at higher prices.

Logically, prices will come down when supply outstrips demand, which may not happen in the foreseeable future with the Covid-19 pandemic taking a foothold in many countries in the world.

The government’s intention on fixing the ceiling price is noble, realising it as an integral life-saving item and attempting to ensure affordable access to all. But sadly, it may backfire with many frontliners and healthcare workers facing a constant shortage, not to mention the public.

If the government intends to continue fixing the price of face masks, then either it gives subsidies when global prices outstrip the local ceiling price, or it takes over local production and makes the items available at a fixed price.

Alternatively, instead of a fixed ceiling price, the government can have a fixed percentage markup from import or wholesale prices and thus allow the free market to function and ensure continuous supply.

The fixing of a ceiling price for face masks in the scenario of a global free market is a classic example of how a well-intentioned policy may backfire and result in consequences the opposite of what is intended.

Instead of succumbing to populist policies and allowing the shortage to fester, we should implement more practical solutions in the face of global reality.

Dr John Teo is an FMT reader.