Fair Trade Act needed to curb malpractices

KUALA LUMPUR: Malaysia needs a Fair Trade Practices Act to control unethical business practices and ensure a healthy economic environment, Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said.

He said the Act, to be tabled in Parliament by the year's end, would among other things replace the price control regime currently in use for essential items.

“The Act will allow us to act against those involved in profiteering, monopolistic business and cartels, and those players conspiring to determine prices,” he said at a press conference after opening the 1st Malaysian Construction Summit 2008 at Putra World Trade Centre here yesterday.

“We don’t want to control prices and we don’t want others to fix prices as well, and the Act will give us the power to investigate any complaint.

“The Act is based on the United Nations model,” he said, adding that it was part of the Government’s efforts to reduce price-controlled items.

“This will allow the prices of the controlled items to be determined by market supply and demand.

“From the 11 price-controlled items, the Government has announced that ceiling prices of steel bars and cement would be scrapped to overcome a supply shortage in the market.

“We are also moving towards the removal of ceiling price for chicken at all levels, be it from the farm, wholesale or retail sectors,” he added.

Shahrir said the idea was to narrow or reduce the numbers of essentials items for easier management.

He, however, said the Price Control and Supply Control Acts would remain, as these were required for the remaining essential items under the price-controlled list.