Monitor the price of diesel so that the price of goods does not rise – Economist

KUALA LUMPUR: Following the government’s subsidy targeting measures which saw the price of diesel float, enforcement should be stepped up to avoid a situation where traders deliberately increase the price of goods.

Bank Muamalat Malaysia Bhd’s Chief Economist Dr Mohd Afzanizam Abdul Rashid said, this is because business cost structure information is not a matter known to the public and it requires regular monitoring by the authorities.

“When going to the store and finding the cost of doing business has increased, then the merchant has to charge a higher price and most consumers will just accept,

“Therefore, the authorities need to look into this matter in order to ensure that excessive profit-taking activities can be curbed,” he said.

In addition, Mohd Afzanizam said, the BUDI MADANI initiative should be strengthened, especially for those who are eligible but do not know how to apply.

Therefore, he called for regular information sessions to be conducted to ensure that there are no dropouts of those eligible to receive the RM200 per month assistance.

He added that the savings obtained by the government through subsidy cuts will be able to be channeled to more important segments.

“The government will spend it towards productivity such as the education, health and infrastructure sectors, where we already know these things are important for future generations,

“For example, if we look at the education sector, we definitely need good schools in terms of infrastructure, classrooms and furniture,

“This step will be able to ensure that students come to study calmly, teachers are motivated to teach and all this requires funds to improve the education sector,” said Mohd Afzanizam.

He is also confident that through this subsidy rationalization step, credit rating agencies such as

Moody’s, S&P, and Fitch Ratings are expected to give a positive assessment of the Malaysian government’s credit position.

It follows the steps and commitment of the government in reducing the precise fiscal deficit.