Ceiling price is to control prices of goods, not necessarily make them cheaper, Dewan Negara told

KUALA LUMPUR: Setting the maximum price of goods is to ensure they are not sold at too high a price, but this does not necessarily mean that the items will be cheaper, says Datuk Rosol Wahid.

The Deputy Domestic Trade and Consumer Affairs Minister told the Dewan Negara that consumers were often confused about the term maximum price, by assuming that the items would become less expensive than usual.

“For example, today we put a maximum price of RM9.60 for chicken, meaning maybe a trader can (buy) chicken at a cheaper price; he may sell it for RM8.

“Suddenly, because the government set the maximum price, he raised it to RM9.60. This is what happens,” he said when winding-up the debate on the Trade Descriptions (Amendment) Bill 2021.

Rosol said to address the issue of rising prices of essential goods, the ministry planned to implement a pilot project involving the cooperation of industry players, traders and local authorities.

“We will discuss with the local authorities, and then put labels on certain shops that want to lower the price or are willing to accept the price we set. These traders may be given rental rebates, and this will lead to lower prices,” he said.

The Trade Descriptions (Amendment) Bill 2021, which seeks to amend the Trade Descriptions Act 2011 (Act 730) to restructure and strengthen its functions to be more comprehensive and up to date was passed unanimously, after being debated by five senators.

The Dewan Negara also approved the Malaysian Space Board Bill 2020 tabled by Deputy Science, Technology and Innovation Minister Datuk Ahmad Amzad Mohamed @ Hashim, which was later debated by seven senators.

Among others, the Bill is expected to develop local talent and expertise in the space industry, as well as make Malaysia a country that not only uses technology, but also is involved in the development of related technologies.

Earlier, the Malaysia Deposit Insurance Corporation (PIDM) Amendment 2021 Bill tabled by Deputy Finance Minister II Yamani Hafez Musa was passed unanimously, after being debated by six senators.

He said the amendments were aimed at protecting the interests and preserving public confidence in the banking and insurance system, thereby maintaining the stability of the financial system as well as stimulating Malaysia’s economic growth and prosperity.

The Dewan Negara sitting continues Monday (Dec 13). – Bernama