Not just cartels, the government is equally responsible

 

From TK Chua

So when is this baloney going to end? I am referring to a news item, “Non-Bumiputeras control meat cartels, says Tajuddin”.

Somehow behind every problem in this country, the non-Bumiputeras are the cause of it. They must somehow shoulder the blame.

Has it ever occurred to Tajuddin that if the non-Bumiputeras had not engaged in this trade, maybe no one else will be doing it?

Look, cartels and monopolies in this country are as natural as the sun coming up each morning. Why are we talking about meat cartels only now?

If we have cartels and monopolies having a stranglehold on the people and the economy, may I know whose fault is it?

Everything in this country is controlled and regulated by the government. The number of control mechanisms, ranging from licences, permits, APs, and those under the purview of the competition commission are endless.

Also, please take a look at the number of government agencies monitoring our ports and airports.

So if cartels are causing the problems, which I agree they could, then the government must be the bigger culprit.

Did the government allow a sufficient number of importers and exporters to operate in an industry? Is it difficult to get a licence to import meat or any food product?

What did the government do if importers had colluded to corner the market? Did the government just form another agency purportedly to control and regulate when in actual fact it does nothing?

Usually cartels come into existence when an industry is highly-regulated and the number of operators is small. New players are usually discouraged by high entry barriers, among them due to insurmountable regulations and control.

It is the job of the government to issue more licences and permits to any new player who wishes to engage in this trade. It is not the job of the government to second guess whether an importer is capable or not.

The government should allow as many as possible to come into the meat industry and those unable to compete will exit the industry on their own accord.

My question to Tajuddin is this: why blame the non-Bumiputeras when probably only the non-Bumiputras are willing to do this trade. Instead, he should encourage as many as possible, both Bumiputeras and non-Bumiputeras, to enter the meat industry.

TK Chua is an FMT reader.

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.