YOURSAY | Rafizi’s collective effort to combat inflation idea worth a try

 

YOURSAY | ‘Who knows, it might just work.’

Rafizi calls for 'collective effort' to battle inflation

Milshah: I think we should give Economy Minister Rafizi Ramli's idea for a collective effort to battle inflation a try. Who knows, it might just work.

Having said that, Rafizi needs to make a structured plan on how the rakyat can go about this, maybe have a campaign. The campaign should clearly instruct what the rakyat needs to do. For example, don't eat rice, but eat only vegetables, for this month.

Simply saying the rakyat should not consume high-priced food is too generic, and it will end up as rhetoric and nothing will change. Do it. I'm willing to give it a try.

BOBBYO: First, we should study the reasons for the price increases. Is it due to a monopoly? One of the factors is when a cartel or individual control the production and purchasing of the product.

This can be easily sorted out by having a free market. If there is competition, there will be suppliers who would easily reduce their prices to seek minimum profits to cover their costs.

Secondly, when it concerns not the basic products, you cannot control these prices. As Rafizi said, it is due to the people purchasing them even at times when there is no necessity to do so.

We must work on the necessities - food, transport, and housing. Food means the basic items like rice, eggs, vegetables, sugar, flour, fish, and chicken, and not the luxury items like crab, shrimp, certain fishes, or even higher-class rice.

Transport, petrol, and tolls are the basic ingredients of the transport cost. Housing - it is time to build more public apartments, especially in the cities.

This is to allow the people to either rent or then use part of the rental to be considered a deposit to purchase their apartment.

The next suggestion is the online industry. If the government wants to start Goods and Services Tax (GST), it should start with the online industry. Six percent for every item purchased online. This will help in reducing unnecessary purchases.

Maya: If we just go by the Consumer Price Index (CPI), then it is not an accurate picture to gauge the cost of living. The basket does not give much weight to healthcare and education. CPI again is expected to go up next year.

Malaysians are generally bargain hunters not only the B40 but a good number of M40 (Malaysian middle class). We have not factored in loan payments, which have significantly gone up. We also depend too heavily on imports.

The other issue is export, there are ready buyers of our commodities, which are cheaper and if consumer demands decrease, they will still have the export market to contend with.

Let's not forget the B40 has hardly much left after paying off loans, utilities, and transport. What are we talking about looking for cheaper alternatives?

The chances of a recession are not over yet. The supply chain and hence goods are not easy to source. Inflation is now worldwide. I am not sure if any of the measures will work.

Only the subsidies or so-called targeted subsidies may help in the short term, but how long are the subsidies going to last?

Yes, it is easy to comfort, from a data point of view, but on the ground the situation is different.

Rafizi said he wants to eradicate poverty, but this is an even bigger hurdle as even the lower M40 have fallen into the B40 group.

Things are going to only get tougher. Remember there will be a domino effect too, for example, the health of the people will suffer during these times and more people are going to end up sick.

The government is just coping on the healthcare side. We must have a holistic view of the situation. It is just not about the price of goods and educating the people. To be frank more needs to be done.

A lot of people are comparing his words with the earlier ministers, but whether it makes sense is the other thing. Let us stop comparing and patting people on the back. Anyway, let's wait for our economists to dissect the speech.

YellowCat1156: It is good that Rafizi is laying out all the cards, but allow me, a man in the street with very little understanding of economics, to say a few things.

Most of us appreciate his honesty, but really do not want a lesson in economics. For many, what he said probably just flew over our heads, or we listened with mouths open, understanding little, and maybe comprehending even less.

Many are already spending as prudently as they can, but do not have much choice in the way they spend when it is the price of essentials that grips us the most. Unfortunately, cheaper alternatives are not cheap anymore.

I am not sure what the impact will be like for small, family businesses, especially those in the food and beverages sector when customers decide to eat out far less than before.

I understand his call for a collective effort, but our efforts can only go so far when we still need to buy to survive. Not live, but survive. - Mkini