Helping hand: Eateries that offer regular or permanent discounts will help consumers keep expenses down.
PETALING JAYA: Robust enforcement against profiteering and cartel activities is critical in managing the cost of living, says the Federation of Malaysian Consumers Associations.
Chief executive officer Dr Saravanan Thambirajah said a centralised database is also necessary to monitor prices.
“This will enable more effective, data-driven policymaking and intervention.
“Enforcement against unfair practices is critical in managing the cost-of-living issue,” he said, adding that subsidies must be targeted at those who are deserving of them.
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Saravanan said annual regular wage reviews would also ensure that the income of workers was aligned with inflation.
“The current minimum wage is inadequate to address the financial pressures faced by many Malaysians, particularly those in the lower and middle-income groups,” he added.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the labour market ecosystem has to be re-examined.
“If we look at the percentage of unionised workers, the ratio has been on the declining trend.
“In 1982, the ratio stood at 11.3% and it went down to 9.3% in 1992, progressively lower to 8.2% in 2002 and last year, the figure was merely 6.2%.
“In that sense, the voice of labourers is not being heard effectively. Perhaps, this trend would need to be revisited to see how best it can serve as a platform that can have bargaining power with the employers,” he said.
Mohd Afzanizam said the cost of living is a multifaceted issue and factors such as how prices are being set had to be looked into.“Is there any malpractice in the industry such as hoarding or price manipulation by cartels?
“From farm gate to marketplaces, the middlemen are the ones to set the price. So, it’s an ecosystem and it’s quite complex.
“Therefore, policies have to consider various aspects so that price increases may not be too steep as there is healthy competition in the market,” he added.
However, on the proposal by the Parliamentary Special Select Committee on Domestic Trade, Entrepreneurship, Cost of Living and Agriculture for an annual review of the RM1,700 minimum wage, some quarters are against it.
Malaysian Employers Federation president Datuk Dr Syed Hussain Syed Husman said a yearly wage review may lead to businesses, especially micro, small and medium enterprises (MSMEs) freezing hiring, reducing employees or introducing automation to mitigate labour costs.“This situation will result in fewer job opportunities, particularly for entry-level workers,” he said.
Syed Hussain also said a yearly minimum wage adjustment may lead to higher inflation.
“Businesses will, in most cases, pass on higher labour costs to consumers through increased prices for goods and services, “ he added.
He proposed that the current biennial minimum wage review policy be conducted at intervals of between three and five years instead.
“Businesses, especially MSMEs, will not be able to survive if salaries keep on increasing.”
SME Association of Malaysia president Chin Chee Seong said increasing minimum wages would create uncertainties for SMEs.
“SMEs have been grappling with other rising costs like that of raw materials and logistics.”
Chin also proposed that stores similar to the Kedai Rakyat 1Malaysia be set up to cope with the cost of living.
