KUALA LUMPUR: A month-long mega sale of CDs and VCDs will be held from July 26 instead of the plan to introduce ceiling prices, which has been scrapped.
Domestic Trade and Consumer Affairs Minister Datuk Shafie Apdal said the sale, which would offer discounts of at least 20%, was a better way of making the discs more affordable.
“The ceiling price (plan) is difficult to implement and it will not stop people from buying pirated CDs and VCDs.
“A minimum discount of 20% will make the CDs and VCDs cheaper than under the earlier proposal,” he said at a press conference to announce the scrapping of the ceiling price plan.
Shafie said that, for a start, during the launch of the mega sale on July 26 to coincide with Consumer’s Day, the 20% reduction would be offered on CDs and VCDs because recording companies and video and CD producers such as Speedy Video, Sony and Warner Music had agreed to participate.
The sale will be held twice a year and the next
one this year will be in September. From next year, it will be held in March and September.
On the decision to scrap the ceiling prices, Shafie said the Government did not want the move to stunt the growth of the industry but at the same time it wanted to make sure the items were “accessible to consumers”.
“We decided to leave it to market forces. But at the same time we want affordable prices for consumers,” he added.
Shafie said the decision was made after several discussions with the industry, artistes, consumer groups, retailers and distributors.
The Government decided to impose ceiling prices on CDs and VCDs last year to curb the buying and selling of pirated discs.
The price control was originally set to take effect on Jan 1 but was deferred to April to enable the ministry to further study the price structure. The implementation was again postponed to today after Shafie was appointed the new minister.
Based on the initial study, the ministry proposed that local CDs be priced at RM21 and foreign ones at RM29, and local and foreign VCDs at RM14. Both consumers and manufacturers did not agree to the prices.
The present prices for original local CDs range between RM19.90 and RM45 while for original foreign CDs it is between RM29.90 and RM63. A local VCD is priced between RM19.90 and RM21.90 while a foreign one is priced between RM16.90 and RM19.90.