Fomca: Traders will find ways to justify price hikes despite price controls

Indira said laws regulate pricing and supply, but enforcement is key to preventing unjustified price hikes. —NSTP/Hairul Anuar Rahim

KUALA LUMPUR: Despite the government's introduction of the Festive Season Maximum Price Scheme (SHMMP) to control food prices, some traders may still find ways to justify price increases, said a consumer group.

The Federation of Malaysian Consumers Associations (Fomca) vice-president Datuk Indrani Thuraisingham said that based on previous years, certain traders have used various excuses to hike prices even when price control measures were in place.

"We have seen time and again that some traders will find ways to justify raising prices, even when controlled pricing is introduced during festive seasons," she said on NST's Beyond the Headlines.

Indira stressed that existing laws, such as the Price Control Anti-Profiteering Act 2011 and the The Control of Supplies Act 1961, to regulate pricing and supply but effective monitoring and enforcement are necessary to prevent unjustified price hikes.

"It's just a matter of monitoring, surveillance and also enforcement. That is why consumers must remain vigilant and report any unreasonable price hikes," she said.

"If there are shortages, it is crucial for consumers to inform consumer groups (such as Fomca) or the ministry so that action can be taken," she added.

On 19 March, Domestic Trade and Cost of Living (KPDN) Minister Datuk Armizan announced that a total of 26 controlled items will be included in the SHMMP list for the 2025 Hari Raya Aidilfitri season.

This, he said, was an increase of four items compared to the 22 items gazetted under the same scheme the previous year, with the list now also including Indian red onions (small), Indian red onions (rose), and coconut milk (santan).

He said coconut milk would be priced at RM17.50 per kg in Peninsular Malaysia, RM12 per kg in Sabah, RM9 per kg in Sarawak, and RM15 per kg in Labuan.

Indrani urged consumers to "budget wisely" and consider cooking at home instead of purchasing food outside during the upcoming celebration.

Maintaining healthy financial habits is essential to avoid unnecessary spending during festive periods, she said.

She added consumers must prioritise necessities over luxury items and explore cost-saving measures, such as reusing or making their own decorations.

"It is not necessary to buy new decorations annually. Consumers can update, reuse, or even make their own, which can also strengthen family bonds when done together," she said. - NST