KUALA LUMPUR, July 12 – Since the Unity Government took over the reins of the country, the rate of price increases for goods and services, also known as “inflation” in economic terms, has been relatively lower. In 2023, inflation continues to decrease, with the inflation rate in May 2023 at 2.8% compared to 3.3% in April 2023, 3.4% in March 2023, and 3.7% in February and January 2023. The current inflation rate is lower compared to November 2022, before the Unity Government came into power, where inflation was at 4.0%.
The 2.8% inflation rate in May 2023 was contributed by the decline in the inflation rate of the Non-Alcoholic Food and Beverage Group to 5.9% (May 2023) compared to 6.3% (April 2023). The Food at Home subgroup recorded a lower inflation rate of 4.3% (May 2023) compared to 5.0% (April 2023), while the Food Away from Home subgroup remained at a rate of 8.1% for April and May 2023. This improved inflation performance is the result of the efforts made by the Unity Government to curb uncontrolled price increases, especially for food and basic necessities.
The Unity Government continues to implement price control policies, whether with or without subsidies, for essential goods such as bottled cooking oil, refined and unrefined white sugar, whole chickens, Grade A, B, and C eggs, local white rice, LPG, RON 95, and diesel. In this regard, continuous monitoring and enforcement are carried out by the Ministry of Domestic Trade and Consumer Affairs (KPDN) to ensure sufficient supply, compliance with controlled prices, and to prevent wastage. As of June 2023, a total of 440,327 inspections have been conducted, resulting in 854 cases and RM11.8 million worth of seizures.
The successful implementation of the RAHMAH Umbrella initiative by KPDN has helped stabilize inflation at a lower rate. The declining trend in the inflation rate of the Food Away from Home subgroup is also attributed to the introduction of the RAHMAH Menu on January 31, 2023. The inflation rate for the Food Away from Home subgroup has been reduced to 8.1% (May 2023) compared to 9.6% (November 2022). To date, there are 2,922 operators of the RAHMAH Menu throughout the country and 290 operators of the RAHMAH Student Menu (formerly known as Kafe RAHMAH) in public universities and polytechnics.
The KPDN is actively implementing the RAHMAH Sales Program, which offers discounts on food and basic necessities of up to 30%, covering 222 Parliamentary Constituencies nationwide. As of June 30, 2023, KPDN has implemented a total of 3,557 RAHMAH Sales locations. Emphasis is placed on the implementation of mobile RAHMAH Sales with the hashtag #KedaiCariRakyat to ensure that more low-income individuals can benefit from the RAHMAH Sales program. The RAHMAH Sales Program is complemented by the Agro-Madani Sales program by the Ministry of Agriculture and Food Security, which brings agricultural produce directly from the farm at a lower price.
To date, a total of 620 Agro-Madani Sales have been implemented, including at 52 government premises nationwide. Retail Price Monitoring KPDN monitors prices for 480 items, with 186 items monitored daily. Retail price data is collected every day from over 1,400 premises nationwide, including wet markets, supermarkets, hypermarkets, grocery stores, and mini markets. The monitoring carried out shows that the prices of most items have remained stable for the past 4 months. For the 61 monitored imported items, a total of 50 items (82%) are within a stable price range, with 28 items experiencing price reductions.
Among the imported items that have shown a decrease in prices are Dutch chickens, bone-in Australian lamb, blade beef, block and blade buffalo meat from India, red radish, large onions from Pakistan, small red onions from India and Myanmar, and Russet potatoes. For consumers’ convenience, all the retail prices collected are available in the Price Catcher mobile application by KPDN, which allows users to compare prices. KPDN encourages consumers to download and use the Price Catcher app to help them plan their shopping in advance.
KPDN would like to remind all traders to practice ethical business conduct. Failure to do so may result in legal action under various acts and regulations, particularly the Price Control and Anti-Profiteering Act 2011. Traders are reminded not to take advantage by arbitrarily increasing prices, hiding controlled goods, or raising prices due to supply shortages. Consumers and concerned parties can report any non-compliance by traders to KPDN through various channels, including WhatsApp, the KPDN e-Complaint Portal, the Call Centre, email, the Ez ADU KPDN smartphone application, and the Enforcement Operations Room.
