I
believe the rising cost of living in Malaysia is the most commonly discussed
topics today since the last general election. Almost all consumer products and
services are in the trend of rising prices, despite the Prime
Minister and Deputy Prime Minister urging the retailers not to increase
the prices unnecessarily.
The
government earlier materialized Kedai Rakyat 1 Malaysia to reduce burden of
people whereby most of the common households can be purchased with lower /
affordable prices here. However, it's not an ultimate solution for the
people.
Speaking
about the price of food in Malaysia, there is a dramatic price increase, almost
throughout the nation. Peoples living in major cities feel the burden most as
the total living cost rises up as well. A standard residential apartment that
can be rented for RM 600-700 three years ago, will cost you now
almost double of it.
I
was triggered after reading today's newspaper, where Domestic Trade,
Cooperatives and Consumerism, Minister Datuk Hasan Malek
said cooperatives in Malaysia are able to reduce prices increase
impact and able to help reduce people's burden. It is certainly a great
stunt to control the price hike.
Anyone
has read about the theory "invisible
hands" by Adam Smith will
agree with this point that, consumer have better power than government in
controlling the product prices. Though I agree with
"invisible hands" and "its" capability to control product
price, but there is something limiting ‘its’ capability in controlling
the price hike trend. I agree with Adam Smith and his theory for all
luxury items, but not for basic human needs. I can live without a smart phone
and a luxury car, but how about food and a place to stay?
I
believe, the government has to play the authority role to ensure the
public are not suffering for their basic needs. So don't fully put the
responsibility on cooperatives and public. Price increase is something un-avoidable,
but still be manageable.
Anyone
having different thoughts from me?
Please
leave a comment here.
