Stop rising cost of living after increase in OPR, MPs tell Putrajaya
ANIS ZALANI SITI NURFATIHAH PIRDAUS
SHAH ALAM - Opposition MPs have raised concerns over another increase to the overnight policy rate (OPR) announced by Bank Negara yesterday.
Tangga Batu MP Rusnah Aluai said businessmen may shut operations as prices of goods may rise while ordinary Malaysians may have to cough out more to pay for monthly car and housing loans.
She said her monthly loans have gone up after the first OPR increase in May.
“If I as an MP can feel the pinch, people are affected too,” she told Sinar Daily.
She urged Putrajaya not to take the impact lightly and to take measures to curb rising food prices.
“Those from the government should not say something like people should take lesser eggs to combat the rising cost of eggs," she said referring to Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) Melaka director Norena Jaafar who had advised Malaysians to eat lesser eggs is the prices are increasing.
Rusnah added the government needs experts to come up with better solutions.
“Don’t we have experts to do research to produce food locally? If we depend on imported products, then what about our food security?
“We have an 11-year-old who won an international award for producing food for livestock using snails. But are we going to wait until she grows up and graduates from a university for us to take action?,” she said.
She was referring to Maryam Muzamir who won three awards at the International Invention Innovation Competition (Ican) in Toronto, Canada for converting shrimp and sea snail shells, that would otherwise become food waste, into livestock feed.
In May, the Central Bank raised the OPR to 2% from 1.75%, reportedly the lowest on record, following a 25 bps cut in July 2020, citing the severity of the global economic slowdown as a result of the pandemic and the contraction of Malaysia’s economic activity.
Yesterday, Bank Negara Malaysia again announced that it has raised the overnight policy rate (OPR) by 25 basis points, raising it to 2.25%.
Setiawangsa MP Nik Nazmi Nik Ahmad, the PKR vice-president said the central bank hopes to control inflation by increasing OPR but added cost of living is rising.
“This is the responsibility of the government, including implementing RM1,500 minimum monthly salary.
“In some areas in Kelantan for example, those working in smaller shops are still paid RM800 or RM900,” he said.
He added small-scale employers need incentives to help them raise staff minimum wages.
Nik Nazmi further questioned the effectiveness of the Malaysia Competition Commission (MyCC) involving cartels who are one of the main causes of the price increases. “Because these companies are big and if they conspire, there is a need to see if MyCC will be able to compete with them.
Umno veteran Tan Sri Shahrir Samad said the increase in OPR is to ensure ringgit does not weaken and is a necessary strategy as other countries were also raising their interest rate.
“The move is necessary or our ringgit value will continue to drop, causing more economic problems,” he said.
However, he urged Bank Negara to explain to the masses the impacts of rising OPR so that the rakyat are informed.
