SERDANG: The Domestic Trade and Cost of Living Ministry is prepared to act upon the emergence of any cartel attempting to control prices of chickens or eggs.
Acting minister Datuk Armizan Mohd Ali admitted it was possible there were risks of cartels cropping up following the government's move to consider floating the prices of the two commodities.
However, he pledged the ministry will do all it can to prevent such a thing.
"There are certain goods that we may float (the price). And when certain goods are floated, there is a risk of cartels being formed.
"Cartels can take the form of price agreements, production alliances, market agreements and similarly, in government procurement, this risk is increasing," Armizan told reporters after attending the signing of a memorandum of understanding (MoU) between the Malaysian Competition Commission (MyCC) and Universiti Putra Malaysia (UPM) here today.
Commenting further, he said the decision to fluctuate the price of commodities like chicken and eggs was a long process as it has involved years of research and engagement between the government and the industries.
Together with the Agriculture and Food Security Ministry , he said the ministry has engaged in various collaborations, with certain companies and industries. He said this was to ensure that the supply of these commodities is sufficient and for them to be sold lower than the controlled prices.
"Our responsibility at the Domestic Trade and Consumer Affairs Ministry is to enforce these things. We will ensure all our enforcement agencies rely on public cooperation when it comes to receiving complaints so we can monitor this together.
"We have about 900 monitoring officers who will observe prices in all regions nationwide and they are deployed to assess price trends.
"Even though there are assurances from the industry, we will monitor and take any necessary actions. If there are complaints in any specific area, we will take appropriate action."
Yesterday, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu announced that subsidies and price controls for chicken would be discontinued from Nov 1, while subsidies and price controls for eggs remain unaffected.
He said the chicken supply in the country remains sufficient.
When presenting 2024 Budget on Oct 13, Prime Minister Datuk Seri Anwar Ibrahim said the government was considering floating the price of chicken and eggs as the supply of both items were now stable.
