SHAH ALAM - The Malaysian Malay Chamber of Commerce (DPMM) predicts that the impact of rising goods prices on traders will begin next week due to the global oil price surge driven by the West Asia conflict.
DPMM president, Norsyahrin Hamidon said this is because unsubsidised diesel and petrol prices must be adjusted following the crude oil price increase, which raises transportation costs.
“So far, the impact on businesses is not yet visible because the adjustment of eligibility under the Madani Budi RON95 (BUDI95) Programme from 300 litres to 200 litres a month only takes effect on April 1.
“So in the near future, we will hold a roundtable conference, call all major associations under DPMM and industry captains directly involved in the business chain to discuss and get feedback from them,” he told Sinar.
He made the comment when responding to a statement by Bumiputera Retailers Organisation (BRO) president Datuk Syed Naqiz Shahabuddin Syed Abdul Jabbar that the current goods price increase was not widespread and remained under control despite pressures from the West Asia conflict.
Norsyahrin further explained that in businesses driven by supply and demand, any impact borne by entrepreneurs also affects consumers.
“When costs rise, profits decrease. Even if traders try to maintain prices, if profits are too low to cover operating costs, they will be forced to raise prices.
“If consumers’ purchasing power drops, traders will also be affected because products and services cannot be sold. A domino effect will certainly occur. Therefore, we hope for government support in this situation,” he said.
Norsyahrin also supported Prime Minister Datuk Seri Anwar Ibrahim’s call for the public to practise prudent spending, including cutting unnecessary expenses.
He said such measures were vital for the entire population to face global economic uncertainty.