‘Monitor utility and diesel prices’

PETALING JAYA: Putrajaya must move swiftly to monitor and control the prices of diesel and essential utilities such as water and electricity to curb inflation and prevent a wave of job losses, says MCA president Datuk Seri Dr Wee Ka Siong (pic).

Referring to the Statistics Department’s Producer Price Index (PPI) for March, Dr Wee said the percentage rose 4.1% month-on-month, the sharpest increase in 20 years.

“The PPI measures production costs. A higher reading means it is more expensive to produce goods, which eventually translates to higher prices,” he said in a video posted on social media yesterday.

He noted that the spike coincided with a sharp rise in diesel prices, from an average of RM2.98 per litre in February to RM4.12 in March, and further to RM5.92 in April.

“What is more worrying is that Malaysia’s diesel prices have recently surpassed those of several competing economies such as Thailand, Indonesia, Japan, South Korea and China, even though these countries are not petroleum exporters,” he said.

Dr Wee warned that the trend could erode Malaysia’s industrial competitiveness, a key concern among the people.

He also expressed concern over a surge in job losses, citing Social Security Organisa­tion (PERKESO) data showing that 24,100 workers were retrenched in the first quarter of 2026, a 47% increase from a year earlier.

“In just the first 16 days of April, 4,700 people lost their jobs, almost matching the total for the whole of April last year, which was 4,800,” he added.

Dr Wee said the current pressures stem not only from global factors such as tensions in the Strait of Hormuz and rising fuel prices, but also from domestic cost increases introduced since late last year.

These include the expanded scope of the Sales and Service Tax, higher port charges, mandatory contributions for foreign workers, rising insurance costs, increased industrial electricity tariffs and water rate hikes.

“While these measures may appear to target businesses, the cost is ultimately passed on to the rakyat,” Dr Wee said.

He urged the government to act decisively, warning that rising costs will continue to force businesses to raise prices and reduce their workforce.

The Statistics Department recently said Malaysia’s PPI rose in March as higher global commodity prices pushed up producer costs.

Before the Middle East conflict, Brent crude traded at about US$70 per barrel. As of April 27, it had climbed above US$110, marking a year-on-year surge of over70%.