PETALING JAYA: Price controls and subsidies should be used as a temporary measure to curb the negative effects of price shocks and enable consumers and producers to adjust smoothly to the supply-demand imbalance, say economists.
Malaysian Economic Association deputy president Prof Dr Yeah Kim Leng said keeping prices low and stable through controls and subsidies has to be weighed against the need to ensure adequate and efficient supply, which is harder to manage if there are distorted markets and prices.
