PUTRAJAYA: The Economy Ministry is developing a policy paper to study and propose the reduction of approved permits (APs) and import permits (IPs) covering all economic sectors with the aim of lowering the prices of goods, especially imports.
Its minister Rafizi Ramli said the policy paper is expected to be presented to the National Economic Action Council (MTEN) as early as October.
Rafizi said the ministry needs to be careful in developing the paper to ensure the reduction in APs and IPs would not adversely affect food supply in the country.
“(This) requires a throrough study and the ministry has already spent five to six months. We cannot eliminate them totally. We need to look at the entire supply chain to ensure there won’t be any (supply) disruption.
“For example, if certain goods have only two or three importers and we terminated (their APs and IPs) when the market or industry is not prepared to have a new player, it would cause a supply disruption,” he told a media conference here today.
Rafizi said that through a government-level policy decisionl, his ministry is hopeful that inflation would be manageable and prices of goods, especially imported ones, would fall.
“There is also room for improving anti-monopoly and competition regulations to ensure a more competitive marketplace. With increased competition, the prices of goods and services would be more reasonable.
“This approach will be implemented in an inclusive, effective and sustained manner to safeguard the people’s well-being,” he added.
Meanwhile, Rafizi said the country’s headline inflation continued to moderate to 2.0 per cent in July from 2.4 per cent in the preceding month, marking the 11th month of reduction.
This, he said, reflects a continued price stabilisation trend, with the food and non-alcoholic beverages category, which recorded a moderate rise of 4.4 per cent, contributing the most to the inflation change.
The minister said curbing inflation is a government priority to prevent runaway inflation or a drastic and unmanageable rise in inflation.
“A chronically-high inflation would erode the people’s purchasing power, as prices of goods and services rise while salaries may not rise in tandem.
“The people’s economic power would be affected, potentially creating social instability,” he added. -Bernama