More monopolies should be dismantled, say economists

 

Following the Cabinet decision on opening up vehicle inspection services, the government has been urged to look into other monopolies.

PETALING JAYA: Monopolies in food, rice import, 5G mobile technology, and supply of medicine should be broken up, say economists in the wake of the decision to end Puspakom’s monopoly on vehicle inspections.

Geoffrey Williams of the Malaysia University of Science and Technology said monopolies in food production, especially in the import of rice and other staples, were among those that should be dismantled as they led to higher prices for consumers.

He said the other monopolies include the 5G rollout and the supply of medicines to government hospitals.

Another economist, Nazari Ismail of Universiti Malaya, also said the government should look into the Bernas monopoly over rice imports.

“More competition will allow consumers to enjoy better products and services,” he said.

Williams said the dismantling of monopolies should not be done on an ad hoc basis. Anti-competition initiatives must be part of a holistic competition policy spearheaded by the Malaysia Competition Commission and the economy ministry.

The government has announced that vehicle inspection services will be opened to all qualified parties once Puspakom’s concession ends on Aug 31 next year.

However, Nazari said vehicle inspections should be carried out by the authorities rather than private industry.

He said the issue is not about ending Puspakom’s monopoly but bringing its functions back under the government.

“There should be strict supervision to make sure the services provided are up to the mark and there is no corruption,” he said.

Mandatory vehicle inspections for commercial and private vehicles are carried out solely by Puspakom, which was appointed by the government in 1994. - FMT