‘Monopolies hamper drop in prices’
KUALA LUMPUR: Finance Minister Lim Guan Eng has cited monopolies as well as global demand and supply as the reason why prices of certain goods have yet to go down despite the removal of the Goods and Services Tax (GST).
He said these were among the reasons why prices have yet to decrease despite the consumer tax holiday put in place since May.
“International demand and supply means prices remain the same. Another factor is the monopoly of certain goods, including sugar and rice.
“By right, the people should enjoy six per cent savings, but the prices have remained the same due to structural factors,” he told the Dewan Negara yesterday.
Lim said the ministry would conduct a comprehensive study to establish other reasons why prices of goods have generally remained the same despite the GST’s removal.
Lim was replying to a supplementary question from Senator Datuk Seri Khairudin Samad, who had asked what the Finance Ministry planned to do against traders who did not reduce the
price of goods despite the GST’s repeal and the introduction of the Sales and Services Tax on Sept 1.
Citing sugar prices as an example, Lim said the product was retailed at RM1.40 per kg in the international market, but sold at RM2.90 per kg in Malaysia.
“This is a structural and monopoly problem that does not benefit the people. They only want to profit and are using their monopoly to maintain prices.”
Lim said Domestic Trade and Consumer Affairs Minister Datuk Saifuddin Nasution Ismail. will make an announcement soon on sugar prices.
Currently, the price of refined sugar per kg in the country is RM2.95 while castor sugar retails at RM3.05 per kg.