Saifuddin: Yes, prices really dropped after zero-GST

Domestic trade minister Saifuddin had come under fire earlier after stating that prices of goods had fallen in June.

Domestic trade minister Saifuddin Nasution Ismail says a survey of 1,688 shops showed that prices have dropped between 0.04% and 13% on 70% of the products.

GEORGE TOWN: The domestic trade and consumer affairs ministry has maintained its findings on a survey that revealed 70% of consumer goods experienced a drop in prices after the zero-rated goods and sales tax (GST) was introduced on June 1.

Minister Saifuddin Nasution Ismail said apart from monitoring by the ministry’s enforcement for one month, he was informed of the matter by traders while conducting inspections, including at the Bayan Baru Market here today.

“Our enforcement department has conducted a survey on 1,688 premises, involving 417 items used by consumers, among others wet and dry items as well as infant essential items, and 70% of these prices have dropped between 0.04% and 13%.

“In my observation today, traders also acknowledged the prices of goods have dropped similar to the survey conducted by the survey at the ministry level previously,” he said after visiting the Bayan Baru market.

Prior to this, various quarters had questioned Saifuddin’s statement on the fall in prices of goods between June 1 and 30.

Umno Youth vice-chief Shahril Sufian Hamdan even urged the minister to disclose the report of the study to enable the people to compare the real prices on the market.

Saifuddin, who is also Kulim Bandar Baharu MP, said the survey conducted also found the willingness to spend among consumers was on the rise following cheaper prices of goods.

He said traders also admitted there was a drop in the prices of goods purchased from wholesalers and they could offer cheaper prices to consumers.

“I talked to the traders. They said people were more inclined to spend after the zero-rated GST and the spending trend is rising, I believe the feedback is reasonable because the traders are more familiar with consumers’ habits,” he said.

Meanwhile, he said 4,000 complaints were received by the ministry and over 50% of them concerned prices of goods that remained fixed, with some prices of items increasing, after GST was zero-rated.

“The number of complaints received last month has increased from May and were made via the e-portal, hotline and our ministry’s website.

“Our enforcement personnel have taken immediate action and made inspections at restaurants, eateries and food courts,” he added. -FMT