Going all out to keep prices low

Doing good: A passer-by looking at the advertisement of Mr D.I.Y. at SS2 in Petaling Jaya.

PETALING JAYA: While many retailers are putting up excuses, a handful are making the effort to keep prices down and setting an example for the others to follow.

Among the companies that have heeded the Government’s call to lower prices is Mr D.I.Y., which deals in hardware, kitchenware, automotive and other products.

Its eye-catching billboards across the country promise: “GST 6% Kami Bayar: Biar Kami Rugi, Anda Puas Hati (We will absorb the 6% GST: We take a loss to keep you satisfied).”

Standing alongside the retailer were hypermarket chains Giant and Mydin, which pledged to maintain low prices, including passing on to consumers some of the savings made from stocking goods in bulk.

These positive actions came at a time when consumers became tired of the buck-passing between manufacturers, retailers and transporters who claimed that their hands were tied when it came to reducing prices – despite a recent fall in fuel costs.

“We understand that people are worrying over the rising cost of living,” said Mr D.I.Y.’s senior assistant marketing manager Andy Chin.

“So, for instance, a hammer costing RM2 now will cost the same after the new tax is implemented (in April),” he said.

The retailer has more than 100 outlets in the country.

GCH Retail (Malaysia) Sdn Bhd, which operates the 126 Giant outlets nationwide, was considering several options to keep the prices of its goods low.

Its corporate affairs director Roslinda Idrus said, among the measures was to have regular sales promotions for specific goods that would feature the lowest possible prices.

She cited Giant’s Chinese New Year sales promotion as an example; vegetables were being imported from China by the hypermarket to keep the prices low for the festive season.

Owing to the recent floods, which damaged several farms in the country, vegetables sourced locally were costlier, she explained.

“Giant is committed to helping ease the rising cost of living. This will be our priority this year.”

Mydin Holdings Bhd managing director Datuk Wira Ameer Ali Mydin said the company was looking at a different approach and was using its bulk purchases to maintain low prices.

Ameer, who is a spokesman for the Malaysian Retail Chain Association (MRCA), said a bigger reduction in prices could only happen at the manufacturing level.

“Despite the lower fuel cost, many manufacturers are not in a rush to help lower costs.

“They are giving the excuse that costs have gone up due to the weakening ringgit against the US dollar,” he said.

“The Ministry of Domestic Trade, Cooperatives and Consumerism must put pressure on these manufacturers to reduce prices via the use of laws such as the Price Control Act and Anti-Profiteering Act,” he said.

Mydin has 267 outlets nationwide, comprising 18 hypermarkets, 16 emporiums, 47 mini markets and three bazaars.

Roslinda agreed with Azmeer, saying that the prices of goods were usually controlled by the manufacturers.

“It is a public misconception that the prices are determined by retailers,” she said. “It is the manufacturers that are at the top of the food chain.”