Is corporate greed undermining positive government initiatives?

The government has recently tried to implement several important initiatives.

These include increasing the minimum wage, launching affordable housing programmes and managing electricity subsidies more effectively.

The first two programmes provide much-needed help for the people of Malaysia. The last one helps save government funds, which can then be used to support more pro-people initiatives.

Yet these measures often face strong resistance from various groups, who urge the government to delay implementation. Their main concern? Having to deal with higher costs of materials, items and services.

Could these higher costs stem from opportunistic increases by certain providers and company executives to generate greater profits? Or could they be simply due to corporate greed?

Let’s go through the issues raised with each measure listed above.

Minimum wage concerns

Small and medium-sized businesses express worry about paying higher wages, citing the financial burden it would cause them.

One key issue is that some larger businesses often charge higher prices to smaller ones for supplied goods. This squeezes smaller businesses’ profit margins, making it harder for them to pay better wages.

The motive behind these larger businesses’ actions? Often to gain more profits for themselves through unwarranted, opportunistic price increases.

Housing affordability challenge

When it comes to government-driven affordable housing programmes, such homes should be sold at lower prices to make them genuinely affordable. This is crucial given the low and unstable financial status of many people in Malaysia these days.

However, many housing developers say higher building material costs make it difficult to keep prices low. This suggests these developers worry about smaller returns, making them reluctant to take part in such initiatives.

The key question is whether the increases in building material prices are justified by actual costs. Or are they opportunistic attempts by certain suppliers to reap greater profits?

Impact of subsidy changes

There are concerns that removing electricity subsidies for larger businesses and shopping complexes could lead to consumer price hikes that could burden the public.

Again, we must consider whether such increases reflect genuine costs and are warranted. Or are they attempts to maintain sizeable profit margins?

Other price increases

We have also heard of issues of costlier essentials like medical supplies and equipment. More recently, planned hikes in certain services like electricity tariffs are likely.

The public deserves to know whether these price rises are justified.

Need for oversight

To minimise unjustified price increases, the government must establish and strengthen independent regulatory bodies. These oversight groups must remain independent and professional and resistant to improper influence.

Unjustified price increases driven by greed can cause hardship for people and create financial burdens for the government. Such practices should not be allowed to obstruct positive pro-people initiatives.

Only by stamping out profiteering can the government effectively uplift the people’s living standards and raise more funds for much-needed pro-people initiatives.

The views expressed in Aliran's media statements and the NGO statements we have endorsed reflect Aliran's official stand. Views and opinions expressed in other pieces published here do not necessarily reflect Aliran's official position.

AGENDA RAKYAT - Lima perkara utama

1. Tegakkan maruah serta kualiti kehidupan rakyat
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