The government is prepared to offer a grace period before implementing the Price Control and Anti-Profiteering Act 2010 which was approved today by the Dewan Rakyat, Domestic Trade, Cooperatives and Consumerism Minister Ismail Sabri Yaakob said.

He said this would enable the ministry to obtain feedback from the industry, consumers and traders on the most suitable price determination mechanism to be applied.

"We are preparing the (price determination) mechanism, the regulations of which will be provided under the act. Only then will we discuss with the industry and so on so that we can come up with a standard and complete mechanism," he said when winding up debate on the bill.

The act, which aims to check unscrupulous traders, provides for a fine of up to RM1 million for any company or organisation found to have raised prices of goods and services arbitrarily to reap excessive profit.

Ismail Sabri said the government was scrutinising legislation in countries such as Australia, China and Singapore to determine the mechanism used as the determinant for unreasonable rate of profit.

He said the price determination mechanism also took into account the elements of tax, geographical location and transportation cost which were often cited by traders when raising prices of goods arbitrarily.

- Bernama