fomca logoJune 14, 2022 @ 7:14pm
KUALA LUMPUR: The Federation of Malaysian Consumer Associations (Fomca) has welcomed the government's decision to implement a new mechanism to manage the ceiling prices of goods.

Chief executive officer T. Saravanan said the government was trying its best to maintain the country's food supply and that the new mechanism would help in this effort.

"The new mechanism for prices of food is a good move. Of course, (the government) has looked into various factors before deciding upon it. The (price mechanism) will follow the market's situation.

"We also saw a statement by the prime minister saying that the government will play an important role in the supply chain of the agro-businesses. It is the correct course of action. However, we must also look into integrity issues to ensure that everything is done accurately and in proper order," he said.

Saravanan said it was a good idea for the government to eliminate the subsidies for chicken suppliers because none of them had approached it for assistance.

He said this was crucial, following claims of a livestock-related cartel and supply manipulation.

He cited the government's decision to ensure that subsidies benefit the people who need them the most.

"In the long term, as the prime minister stated, we must look into the cooperation between the state and federal governments and build an agricultural sector of quality."

Saravanan said Fomca would support the new price mechanism provided that the government maintains the nation's food supply.

"We have seen shortages of food items, and many people have complained to Fomca about this. We must understand it is not only happening in Malaysia but globally as well.

"Hopefully, the supply will recover in the upcoming month," he said.

Yesterday, Prime Minister Datuk Seri Ismail Sabri Yaakob said the government would impose a new mechanism to manage the ceiling prices of goods based on market fluctuation to strengthen Malaysia's food security.

The decision was made during an Economic Action Council, which he chaired.