Announcement of price hike draws attention of MyCC

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PRICEY BREAD: Consumers in Sibu bracing for costlier bread and confectionery following the association’s announcement of an increase of 10 to 15 per cent next month to offset spiralling cost. (Inset) Wan Ahmad Uzir Wan Sulaiman

SIBU: A local confectionery association has come under the Malaysia Competition Commission’s (MyCC) scrutiny following its move to hike prices of bread and confectionery from Dec 1.

Sibu Confectionery and Bakery Association at its second annual general meeting on Sunday announced a hike of 10 to 15 per cent to offset spiralling cost.

According to Ministry of Domestic Trade, Cooperatives and Consumerism (MDTCC) state director Wan Ahmad Uzir Wan Sulaiman, MyCC was investigating the matter.

“The association did not inform the ministry of the proposed hike.

“There wasn’t any discussion with MDTCC,” Wan Uzir confirmed yesterday when asked if the association had discussed with the ministry before making the decision to hike prices of bread and confectionery.

This latest development came just days after consumers here were hit by the price increase of drinks by between 20 and 50 sen after the government removed the sugar subsidy recently.

Sibu Coffee Shop and Restaurant Owners Association chairman Tong Ing Kok recently cautioned that an uglier nightmare might arise in less than two months’ time.

Meanwhile, to alleviate consumers’ concern, Sibu Confectionery and Bakery Association chairman Huong Sien Meu claimed that the increase in the prices of bread and confectionery was deemed minimal, which they believed would not burden consumers much.

Wan Uzir said such unilateral hike contravened the Competition Act 2010.

“The main thrust of the Act enforced since Jan 1 last year is to promote a competitive market environment and provide a level playing field for all players in the market, quashing anti-competitive practices such as cartels and collusions to protect consumers.

“The Act also prevents firms or enterprises from abusing their dominant market position that could create economic hardships for consumers,” he explained.

Meanwhile, a construction worker, known only as Kelvin, when met outside a construction site here yesterday, lamented that the increase starting next month would be burdensome to labourers.

“We are daily paid workers and come from low-income families. The increase of 10 to 15 per cent in bread and confectionery would create economic hardships for us.”

Taxi driver Robert Angka, also opined that the increase would be burdensome to consumers, particularly those in the lower income bracket.

He, however, reckoned that people would gradually adjust to the new economic reality.