Don't speculate on rise in goods prices - Armizan

Domestic Trade and Cost of Living Minister Armizan Mohd Ali has urged all quarters not to make any speculation on the rise in goods prices following the implementation of diesel subsidy rationalisation.

In fact, Armizan said, the actual date of implementation has yet to be decided by the government.

“Don’t make speculations now. The exact date of the subsidy rationalisation has yet to be announced and we will announce our strategy later on,” he told Malaysiakini.

Armizan (above) was asked to comment on the government’s assurance that prices of other goods will not increase following the implementation of subsidy rationalisation.

Previously, Malaysiakini reported that Malaysians have expressed their concerns over the rise in prices of goods, following the government’s plan to implement targeted diesel fuel subsidies.

Checks by Malaysiakini found that Prime Minister Anwar Ibrahim’s guarantee that commercial users will continue to receive subsidies is not enough to assure the people.

No need to worry

Meanwhile, Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh said the people need not worry about the government’s announcement.

She asserted that the speculation that there will be a surge in the price of goods is baseless.

“We are in the process of registering all types of vehicles that transport necessities, and we are also opening registration for individuals who use trucks or private pickup trucks to obtain subsidies.

“This means we are tackling the issue of transportation of essential goods.

“So, where is the rationality (for traders) to increase the price of goods?” she told Malaysiakini.

The government, she said, has also identified 23 types of vehicles that will receive diesel subsidies.

"For example, those who have businesses at night markets, pick up goods and use a private pickup truck, they did not buy the vehicle in the name of the company. So, there is no excuse whatsoever to raise the price of the goods.

“Because all private vehicles that transport goods are given a fleet card and cash subsidy, if it’s a company, we give a fleet card," she added.

Control mechanism

Should any quarter attempt to take advantage of the subsidy rationalisation, Fuziah said her ministry will take action.

“We have the power to obtain the price (of goods) along the supply chain, from the manufacturer to the cost of transportation.

“Let’s say we’re talking about vegetables. We know the vegetables from the farm involve production, transportation, wholesale, and retail costs, and we have the authority regarding the Price Control and Anti-Profiteering Act.

“This means we can use the act and we have already used it in several cases,” she said, citing examples of the discontinuation of subsidies and price controls on chicken on Nov 1 last year.

She said the government has a mechanism to control every increase in goods prices.

“We guarantee that we will monitor, and we will take actions in the event of an unreasonable price increase,” she stressed.

On May 21, Anwar announced that the government would end blanket subsidy for diesel, with an expected savings of RM4 billion, saying it was also benefiting the “maha kaya” (ultra-rich) and over three million foreigners.

However, he said the government will continue to subsidise diesel for 10 types of public transport and 23 types of vehicles used to transport goods, to curb a sudden increase in prices of goods and services.

'Don't use targeted diesel subsidy as excuse to increase price of goods'

Chamber calls for gradual subsidy reforms

Tour van drivers unhappy with exclusion from diesel subsidy

RM200 diesel subsidy criteria unveiled, application opens tomorrow

MP SPEAKS | Time to move forward on subsidies