KJ: Self-test kit pricing is final, rakyat comes first

 

The government’s decision to impose a ceiling price on Covid-19 self-test kits is final, said Health Minister Khairy Jamaluddin.

Speaking to reporters earlier today, Khairy said he was aware of the grouses raised by test kit suppliers and retailers, but they have made the decision to side with consumers.

“I know about their statement. But we have to balance between the suppliers, retailers and the people.

“If we were to give them a month to clear up their stocks, the ones who would be shouldering the burden of having to pay as high as RM40 per kit are the rakyat.

“So we had to make a decision. We decided to side with consumers, who have asked for a ceiling price to be set on test kits as soon as possible.

“The decision is done,” he said.

Month-long study to determine ceiling price

Meanwhile, Domestic Trade and Consumer Affairs (KPDNHEP) Minister Alexander Nanta Linggi said after the ceiling price comes into effect on Sept 5, sellers will have a one-week grace period to change their prices. This is in line with the ministry’s enforcement practices for earlier price ceilings for other products.

However, he dismissed allegations that ceiling price had been introduced too hastily or without public consultation.

On the contrary, it has been the result of a month-long study undertaken by the ministry.

This includes consultations with relevant industries, government agencies, pharmacy associations and proprietors, manufacturers, importers, and retailers to garner accurate information about the supply and sale of the test kits.

“Although the discussions did not specifically touch on ceiling price to be set, all industry players involved should have been aware that the purpose of the discussion was to obtain information regarding the pricing and supply mechanism.

“Preliminary information was also provided through the ministry’s press release titled ‘KPDNHEP studies price and cost of Covid-19 self-test kits to determine appropriate price’ which has garnered media coverage.

“Every detail from feedback garnered from the consultation sessions have been taken into account and given attention by the KPDNHEP in implementing the ceiling prices in accordance with Section 4 for the Price Control and Anti-Profiteering Act 2011 (AKHAP), as with (price controls) on face masks and bottled palm oil before this,” he said in a statement today.

In addition, he said the ministry’s enforcers had inspected 2,333 premises including community pharmacies and health facilities nationwide between Aug 15 and Sept 2 and issued notices to manufacturers and importers under Section 21 of the AKHAP.

This is to gather information to help determine the ceiling price.

“The ceiling price is justifiable and accounts for sellers still being able to make a profit at the wholesale and retail levels,” he said.

Alexander added that the price ceiling will benefit residents of Sabah and Sarawak equally, as based on feedback from distributors there, and will not burden those living in the two states.

Yesterday, Khairy and Alexander jointly announced that the government capping the price of rapid self-test kits.

The ceiling price has been set at RM19.90 for retail and RM16 for bulk purchases.

Following this, the Malaysian Pharmacists’ Society issued a press statement stating their objection, saying that the price cap was too sudden and too steep.

According to the group, community pharmacists had paid between RM22 and RM32 per kit when purchasing from suppliers. In addition, shipping the kits to Sabah, Sarawak and Labuan incur a high logistics cost.

Meanwhile, when asked if the government has a plan to also put a cap on prices for RTK Antigen and RT-PCR Covid-19 tests, Khairy said the MOH would consider it.

“Let us look into that,” he said. - Mkini