The drastic increase in essential goods affects the people badly as they need to sustain themselves, especially during an economic crisis.

(Source: Harian Metro)

Companies selling goods have issued statements stating that the price increase is necessary and unavoidable due to the increased costs that they must bear.

This was further confirmed as Prime Minister Datuk Seri Ismail Sabri Yaakob stated in a statement during the Barisan Nasional (BN) convention at the World Trade Centre Kuala Lumpur, that the government will introduce subsidies in terms of finance to the ones in need, especially the B40 group.

With the statement itself, it has indirectly stated that the price of goods has, in fact, increased starting in July.

Prices for goods, especially food items such as chicken, wheat, potatoes, and more, have skyrocketed, causing uneasiness for everyone in the country.

Not only that, prices for certain items such as clothing as well as crude oil also make people further distraught by the situation that is happening.

With the country in constant economic turmoil, it is shocking but no surprise that this situation has come to haunt Malaysians in order to survive.

But why exactly has this situation happened? How has the country been shaken by this situation and what are the main causes behind it?

Why the Sudden Increase?

On February 24, 2022, the world was shaken by the news of Russia's full-scale invasion of Ukraine. It was a threat to world peace, but it also crashed many sectors of the global economy, affecting Malaysia as well.

According to the Berita Harian report, the invasion of Ukraine by the Russians has put pressure on the global market as both these countries are important suppliers of items such as wheat, barley, gas, fuel, fertilizers, and many more.

Based on a report from The New York Times, Russia and Ukraine both account for more than a quarter of the world's export supply of wheat, which is the prime ingredient used in everyday foods around the world like bread and noodles.

Although the Russia-Ukraine war has taken a huge toll on these items' rising prices worldwide, many other nations have been troubled with problems as well.

The Russian-Ukraine war has affected the whole world, not just Malaysia economically, as Russia and Ukraine are both powerhouse countries in terms of exporting.

(Source: Reuters)

Reuters and GEP detail that India banned their export of wheat as the extreme heatwave has stunted production, and there was a global potato shortage from the USA and Canada to restrict the spread of potato wart disease.

The Asean Post also mentioned that Malaysia itself is blocking its export of chicken to Singapore as our nation itself is facing a shortage.

The ongoing war and the global food crisis surely do affect the price rise of items here in Malaysia, but it is not just solely because of those.

Mazlina Ahmad, Head of the Price Control Unit of the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) Putrajaya, stated that there are many factors affecting the price rise in Malaysia recently.

“The cost of goods produced soared because of factors that we can divide into internal as well as external factors.

"Besides the war with Russia and Ukraine and natural disasters happening around the world and in our country, global crude oil and raw material prices have risen too.

“Transportation costs, scarcity of labourers, and the high cost of migrant labour all affect the recent price rise in Malaysia,” stated Mazlina when interviewed by Berita DIMENSi via Google Meet.

Besides that, the recent increase in the minimum wage to RM 1,500 has been seen as a good initiative from the government to the people, but as basic economic sense goes, when the minimum wage increases, the operating cost of items will also increase.

All these factors, including the scarcity of food production in Malaysia, are the main reasons why the recent price rise percentile is high and fear of it increasing is imminent.

Malaysians Livelihood Concern

The sudden increase in prices is not something out of the ordinary and it happens all the time. Even so, the rapid increase of items has proven to be a burden this time to everyone in Malaysia.

The world is slowly getting around to functioning well after the COVID-19 virus has halted a lot of activities for the last two years.

And yet, the constant price rise in Malaysia has added more salt to the wounds of the people, as it is said that things would get better, yet the opposite happens.

With people losing jobs because of the pandemic, it surely is a slap to the face of the people now for them to survive.

Not only does it affect consumers, but the price rise also affects traders and wholesalers.

Wholesalers and traders can do nothing but raise their prices for their customers too, as they are affected as well, even though they feel guilty about doing so.

According to Hanom Kamaruddin, 47, who owns a convenience store at Sungkai, Perak said that when the cost of a product rises, so does the value of the items.

"Some customers are bewildered on why certain items that we sell increase in price.

“We do not like it as well as we as traders feel guilty for charging extra from customers but it must be done", she added.

It is the same case for Maizatul Hafizah, 21, who runs her family convenience store at Shah Alam, where she stated that the items bought from wholesalers now are more expensive but needed to be sold to customers at a constant price.

Maizatul also stated that items like bottled drinks, coconut milk, and even sardines, which were once considered to be poor man's food, are now expensive among other goods.

Price Catcher, Law Enforcement Needed

Regardless of everything, the world's economic breakdown or the incompetence of the government in handling this problem, the people need to realise that hardship can come in any shape or form no matter the time, so it is best to prepare, especially in this crisis.

Although the government has made multiple initiatives to help the people, such as making sales or developing a ‘Price Catcher’ application to compare prices, it is deemed not enough, especially if the matter comes through globally.

The Price Catcher application developed by KPDNHEP for consumers to compare prices of goods is a good initiative, but it is still deemed not enough as complaints still occur.

(Source: Berita DIMENSi/Harith Kamal)

However, something that needs to be done by the government in the days of price peaking is to tighten and enforce laws on whoever dares to raise their price beyond what is set.

Businesses and wholesalers might take this opportunity to scam consumers on the rise in price, especially the ones who are not aware of it.

As believed by Sinar Harian, with the constant change of the economic balance, businesses may take the opportunity to raise the price of goods at their own will.

It is best for everyone to be aware of the news of the recent price peak, not only to ensure consumers are not getting finessed by businesses but also for themselves when they need to buy goods.

There are multiple ways to curb the increase in the price of goods, and everyone should take notice of it as a precaution.

(Source: Berita DIMENSi/Sabrina Jamali)

For consumers who have absolutely zero power over the price rise, they can only prepare mentally for what is yet to come.

Zalina Ibrahim, 57, who works as a senior human resource said that people need to adapt and learn to save our daily spending.

"Cut off anything unnecessary and plan better, such as learning how to cook instead or planting your own vegetables. All of these can help tremendously during this time, especially for people who have a big family,” she added.

The price rise happening is something that could not be avoided, especially for the masses. It is hard enough to survive on a daily basis currently, but with the constant rise in prices, it may affect our way of living.

Regardless of this, it is not impossible for everyone to pull it through during these hard times as there are numerous ways to mitigate this situation.

The Consumer Price Index (CPI), a measurement to show the rate of inflation shows how it affected the price and also the state in Malaysia

(Source: Berita DIMENSi /Fatin Umairah)

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