Festive Overtime Costs May Push Up Prices, But Sharp Hikes Discouraged
IPOH: Essential goods are expected to see slight price adjustments ahead of the Chinese New Year and Ramadan festive seasons, largely due to increased operational costs borne by traders, particularly overtime payments for employees.
Perak State Executive Councillor for Domestic Trade, Cooperatives, Consumer Affairs and New Villages, Woo Kah Leong, said modest price increases are understandable during festive periods, as businesses often extend operating hours to meet higher consumer demand.
He explained that during major celebrations, retailers and wholesalers frequently operate beyond normal hours, including public holidays, which inevitably raises wage expenses.
Price Adjustments Must Remain Reasonable
While acknowledging the realities faced by traders, he stressed that any increase must remain minimal and justifiable.
“If the increase is small and meant to cover overtime costs during the festive season, it is understandable. However, prices should not be raised excessively or suddenly,” he said after attending the launch and walkabout session of the 2026 Chinese New Year Festive Season Maximum Price Scheme organised by the Kementerian Perdagangan Dalam Negeri dan Kos Sara Hidup (KPDN) Perak at Pasar Besar Ipoh.
According to him, unreasonable price hikes would not only burden consumers but could also harm businesses in the long term.
Short-Term Gain, Long-Term Loss
Woo cautioned that traders who take advantage of festive demand by imposing steep price increases may enjoy short-term profits but risk losing customer trust permanently.
Consumers today are increasingly price-conscious and have access to multiple alternatives, including comparing prices across different outlets before making purchases.
“A sudden spike in prices may discourage customers, including tourists, from returning in the future. It may be profitable today, but damaging in the long run,” he said.
He added that festive seasons should strengthen goodwill between traders and consumers rather than create dissatisfaction driven by excessive pricing.
Adequate Supply Limits Room for Sharp Increases
On supply concerns, Woo assured that essential food supplies in Perak remain sufficient ahead of the festive celebrations.
In fact, he noted that certain goods are available in quantities exceeding demand, reducing justification for drastic price increases.
“As long as supply remains stable and sufficient, there is no space for unreasonable price hikes. Adequate supply plays a crucial role in ensuring price stability,” he explained.
He added that enforcement teams from KPDN branches across Perak are conducting daily inspections to ensure compliance with the Festive Season Maximum Price Scheme.
Traders found selling above the ceiling price or failing to display clear price tags may face enforcement action under existing regulations.
Shared Responsibility for Price Stability
Woo also urged consumers to report any suspicious or unreasonable price increases to the authorities.
He emphasised that maintaining a healthy business ecosystem requires cooperation between traders, enforcement agencies and consumers.
With household spending typically rising during festive periods, balanced pricing and consistent enforcement are essential to prevent undue financial pressure on the public.
Through continuous monitoring and sufficient supply levels, the state government aims to ensure that celebrations can proceed smoothly without excessive cost burdens on consumers.
-wilayah.com.my
