Don’t make people pay the price

Businessmen should not profit from the misery of others

EVERYBODY is puzzled as to why the falling price of fuel has not translated into lower prices of food and many essential items. The last time such prices rose drastically and across the board was in tandem with the huge spike in fuel price.

As usual,when it comes to finger-pointing, the Government appears to be the main party to be blamed. It had reacted too swiftly to the soaring prices of oil and slapped a big increase in the price of fuel without considering how traders would react. In other words, it did not seem to have a framework of how prices could be allowed to rise, and in what way this should be communicated to businesses and consumers.

The current situation of inflated food prices is one of the instances of what can be described as profiteering. To ordinary people, this refers to making gains based on unfair pricing, or excessive gains to the detriment of others. It is different from profit.

Many reasons are being offered as to why these prices, once up, cannot be reduced. Other costs have gone up and demand has dropped. Some say to keep costs down, they have even started laying off people in a small way. Therefore, they are not in a position to lower prices as their business has to be maintained.

Those in the upper or middle income brackets may tolerate the situation a bit longer; but the lower income segment will not buy such stories. They expect fair game. Traders and business people cannot maintain prices, profits and prop up their companies at the expense of the public.

At the end of the day, market forces should prevail and the most inefficient will have to find the proper means to survive. In this respect, the public has a role to play in ensuring that prices are dictated by market forces. It is no use crying at the high prices of things and still keep paying for them.

Of course, there are certain payments that are unvoidable such as fixed toll rates and higher electricity charges. Certain policies in the past had deemed that the consumer bears the burden of high investments in highways and power plants. As we progress, we should be able to structure investments as well as risk and reward in a more efficient manner.

The present crisis should teach us that it is the survival of the fittest and that people should not profit from the misery of others. That does not mean that businessmen cannot seize opportunities presented by the current economic weakness especially in the area of mergers and acquisitions. In fact, those with some form of financial strength are planning strategic moves in preparation for the upswing.

But whether it is good or bad times, people should not profiteer from the naivety of others. The case in point is some of the hillside developments where there should have been stricter due diligence. There are acts of God that cannot be avoided. But in many instances, greater care and monitoring could have saved the day.

Falling fuel prices should translate into lower prices of food and other essential items

Buyers pay a premium for scenic and secure locations. They do not want to find out at the end of the day that their trust has been misplaced.

It is time we take the bull by the horns and really look into what we are paying for!

l Senior business editor Yap Leng Kuen advocates a proactive approach towards ensuring that things are really worth the price we pay. People – whether they are building mansions or just serving noodles – must be able to account for every item they charge the public.