PETALING JAYA: Consumer groups are urging the government to introduce targeted price controls on essential goods alongside more focused subsidies to shield households from rising costs amid global economic uncertainty.
They said temporary price caps could be extended beyond festive periods during times of volatility.
Federation of Malaysian Consumers Associations chief executive officer Dr Saravanan Thambirajah said such controls should focus on essential items including rice, cooking oil, sugar, milk, eggs, fresh produce, flour, bread, chicken and fish.
“Temporary and targeted controls for essential goods can be considered during periods of volatility and not just during festive seasons.
“However, these must be supported by strong enforcement and anti-profiteering measures to ensure that the intended benefits reach consumers and are not undermined by market manipulation,” he said when contacted.
Saravanan added that the government should also strengthen targeted subsidies and cash assistance to ensure support reaches vulnerable groups without distorting the market.
“The government should enhance targeted subsidies and cash aid so that assistance reaches those who need it most, while improving supply chain transparency and addressing inefficiencies, including the role of intermediaries,” he said.
Saravanan also stressed that cost-of-living pressures extend beyond food, calling for a broader approach that covers essential services such as healthcare, transport, utilities and financial services.
He said a more coordinated mechanism is needed to address consumer issues, noting that responsibilities are currently spread across multiple ministries and agencies, which can lead to gaps in enforcement and confusion for the public.
“A centralised platform or coordinating body would improve policy coherence, streamline responses and ensure more effective monitoring and intervention,” he said.
Meanwhile, Consumers’ Association of Penang president Mohideen Abdul Kader said Malaysia must continue implementing and closely monitoring price controls on essential food items as global uncertainties persist.
He said part of the savings from reducing fuel subsidies could be redirected towards boosting food production, improving public transport and supporting those most in need.
“With savings from fuel subsidy rationalisation, the government could also establish food banks and work with grassroots charitable organisations to reach those in desperate financial situations,” he said.
Mohideen added that a portion of these savings could be channelled into food subsidies for the poorest groups to help cushion the impact of rising prices.
He cautioned that maintaining artificially low fuel prices could have unintended consequences, including encouraging overconsumption and smuggling.
“If RON95 prices continue to be pegged at RM1.99, there will be little incentive for people to drive less or switch to public transport,” he said.
He also warned that rising food prices could push lower-income households towards cheaper, less nutritious diets, increasing the risk of malnutrition and diet-related diseases, while placing greater strain on public healthcare services.
He added that prolonged inflationary pressures could also lead to a rise in loan defaults as borrowers struggle to meet their financial obligations.
