AS a Muslim finfluencer hit out at the existence of an umrah (mini haj) cartel involving 81 service providers as exposed by the Malaysia Competition Commission (MyCC), the Malaysia Umrah & Haj Travel Agency Association (PAPUH) was quick to refute MyCC’s claim as a “gross exaggeration”.
Its CEO Datuk Seri Razali Mohd Sham explained that the deemed “floor prices” as claimed by MyCC are merely reference prices in line with the Tourism, Arts and Culture Ministry’s proposal for the various umrah packages that the public can choose from according to their affordability level.
“The package pricing can be higher or lower dependent on the booking period, travelling season and festivity period, among others,” he pointed out in a media statement.
“Therefore, the allegation levelled by MyCC has tarnished the reputation and trust of the society towards members of PAPUH who possess valid MOTAC licenses. PAPUH is very upset with MyCC’s action and will pursue a follow-up action after seeking legal advice.”
For context, MyCC had on Monday (Sept 30) earmarked 81 enterprises – including GISB Travel & Tours Sdn Bhd – for their involvement in a price-fixing scheme for the provision of umrah travel services in Malaysia from 2023.
Their cartel characteristics can be deemed as an infringement under Section 4 of the Competition Act 2010, according to the agency under the Ministry of Domestic Trade and Cost of Living (KPDN).
In all fairness, MyCC had nevertheless caveated that this is only its provisional findings on grounds that the said enterprises had in principle agreed to fix the floor prices for both economy and premium umrah package services during their (MyCC-PAPUH) meetings in early 2023.
As such, it should not be assumed that these enterprises have infringed the Competition Act.2010 at this juncture.
“As required by the Act, the enterprises named in the Proposed Decision have been notified of the proposed penalties. These enterprises are given the opportunity to submit their written representations to MyCC within 30 days of receiving the Proposed Decision,” asserted MyCC’s chairman Datuk Seri Mohd Hishamudin Yunus.
“The enterprises will also have an opportunity to present their oral representations before the commission on a date to be determined later.”
But the well-intended MyCC exposé has let to finfluencer Nazrihamdan (@nazribiztal) lamenting that “there has been many cases of late whereby businesses which portrayed religious image ended up getting busted for various wrongdoings”.
“Some are involved in sexual cases, some are in business but do not pay workers’ wages while others are engaged in promoting umrah packages but their prices are deliberately increased because of cartel alliances,” he fumed.
“The umrah cartel package means that many of our Muslim brethren have been fleeced into paying unreasonable prices.” – Focus Malaysia
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