Supply chain disruption causes the prices of goods to rise

The surging prices of food items and basic essentials is one of the main problems plaguing most Malaysians today. This problem affects everyone, but the degree of hardship for people with lower income would certainly give them more pressure on their cost of living.

Last year alone, Malaysia has witnessed several incidents of rising prices of goods, especially involving the prices of chicken, fish and meat. The increase in price is due to various factors. Among them are the growing demand for goods, rising global oil prices, disruptions to the supply chain and more.

On top of that, the hike in prices is affected throughout the supply chain – from the producer to wholesaler and to the retailer. We can see that eateries have increased their prices at hawker stalls and restaurants and this certainly affects the consumer's expenditure.

Therefore, to avoid this problem escalating further, necessary measures and initiatives to monitor food prices and the supply of basic necessities must be stepped up immediately.

Supply chain disruptions

According to Zulkarnain Shahbari, a butcher at Jalan Othman Central Market, the problem of rising prices of goods is due to the costs incurred at various levels of the supply chain before reaching the traders. The producer and wholesalers have set their costs. So by the time, it reaches the traders, the price eventually increases.

The purchasing power of a handful of people is now at a critical level and without intervention from the government, they will risk living in starvation.

Vegetable prices are declining

“Currently, the supply of vegetables at the Jalan Othman Central Market is seen to be able to meet consumer demand apart from the declining price. Most traders also do not face problems in obtaining supplies from wholesalers to meet consumer demand, "said Fikri Misnon, a vegetable seller.

"The prices of vegetables will rise and decline and it is normal especially when the festive season arrives. However, controlled vegetables such as tomatoes, long eggplants, chillies are still expensive because they are supplied from Selayang and also because the floods have caused many crops to be infertile,’’ he said.

“Most Malaysians always express dissatisfaction to traders without understanding the business ecosystem. The problem is, we always look at one side only without finding out the cause of the price increase. There are suppliers and wholesalers who also play a role in setting the price,’’ said Datuk Mohd Ridzuan Abdullah, President of the Association of Small and Medium Entrepreneurs Malaysia (IKHLAS).

The increase in the price of goods needs to be closely monitored by KPDNHEP so it would not continue to affect the lives of low-income households and families affected by the Covid-19 pandemic.

As one of the ministries under the government, KPDNHEP needs to put the interests of consumers above the profits of the individuals in the supply chain who take advantage of the rakyat.

This content is provided by 99 Media.