Food for thought on food prices

TWO articles in the New Straits Times and Berita Harian highlighted the effects of property-related taxes on the cost of living in Selangor and Penang.

The facts and figures presented by Isham Jalil, the special officer to the prime minister, provided food for thought.

The cost of living is associated with the Consumer Price Index (CPI), which comprises housing, transport and food. CPI in parts of the country has gone up. This is due to traders abusing the Good and Services Tax (GST).

It is time to stamp out profiteering by traders using GST to hike up prices. Consumers have to deal with exorbitant prices whenever traders abuse the taxation system.

The rise in the cost of living is mostly an issue among urbanites, particularly among the young Malay working class, who earn between RM3,000 and RM4,000 per month.

They are part of a demographic who went through a much slower rate of urban migration as compared with those who had moved to the cities three or four decades ago.

As 60 to 65 per cent of the population live in urban areas, more focus must be given to this segment.

To say that the cost of living has gone up across the board may not be accurate. The significant increases in costs are seen only in the food and beverage (F&B) sector. That is why relieving and controlling food prices must be continuous.

As rental and transportation costs affect traders in the F&B sector, a more cost effective, hygienic and trendy option is for them to consider migrating to food trucks.

The government’s push to promote food truck entrepreneurs is commendable.

When tabling the 2018 Budget, Prime Minister Datuk Seri Najib Razak announced a RM120 million allocation to 1,000 1Malaysia Food Truck and 1Malaysia Mobile Food Kiosk entrepreneurs.

The allocation is to be distributed by Bank Rakyat and Bank Simpanan Nasional with a subsidised interest rate of four per cent.

The prices of goods will continue to be a hot topic in the coming weeks as preparations for Chinese New Year are underway.

There are rumours of traders marking up prices to up to RM300 for items for the reunion dinner, such as white pomfret.

That is why having controlled prices for essentials is helpful. Traders must be compelled to display prices of vegetables, meat, poultry and other food as it will help consumers compare prices.

Ultimately, the responsibility of bringing down the cost of living lies in the hands of consumers.

They have the right to get the best value for their money, and boycott traders who charge exorbitant rates for goods and services.

DR HOO KE PING

Kuala Lumpur

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