SINCE the implementation of the sales and services tax in September, 70% of goods have seen price reductions, Deputy Domestic Trade and Consumer Affairs Minister Chong Chieng Jen.

The ministry studied the average prices in May and September for 419 goods, and found 291 items cheaper since SST replaced the Barisan Nasional-introduced goods and services tax (GST).

The items surveyed are in six categories – fresh food (136 items); dry goods (25); packed, canned and bottled goods (159); drinks (25); cleaning products (23); and baby food and products (49).

Of the 291 items that were cheaper, 120 are packed, canned and bottled goods; 70 fresh food items; 43 baby food and products; 22 cleaning products; 19 drinks; and 17 dry goods.

“The range of the reduction in prices is from 0.11% to 37.61%,” he told the Dewan Rakyat during question time this morning in response to a number of queries on the impact of the SST.

Chong (Stampin-PH) said the average prices for 115 items or 27% of the total 419 items became pricier since SST was implemented, while the prices of 11 items or 3% have remained unchanged.

He said items that became more expensive are 63 fresh food; 34 packed, canned and bottled goods; seven dry goods; six drinks; and five baby food and products.

“The range of the price increases is from 0.09% to 41.65%,” he said. 

Chong said since SST is paid by manufacturers, the impact it has on prices is still not so noticeable at the beginning of its implementation.

The impact on prices will be clearer when new stocks enter the market starting from September, he said.

His answers soon led to an argument with several opposition MPs.

Former deputy international trade and industry minister Ahmad Maslan (Pontian-BN) said the study by the ministry on 419 items was not wide enough as there are thousands of goods in the market.

A study on new stocks will represent the current situation better and that prices are up because the PH government replaced the 6% GST with the 10% SST, Ahmad said.

“What Pontian says is misleading. Of course, we will conduct studies. We won’t just make fried rice like Pontian to put up a show when GST was being implemented,” Chong said.

In June 2015, Ahmad tried to play down the people’s unhappiness over the newly implemented GST with a Twitter post showing himself and his GST-free fried rice. He was widely panned over the post.

Chong cited year-to-year consumer price index figures from June to August last year and this year to show that GST had led to inflation.

In June, July and August last year, the CPI was at 3.6%, 3.2% and 3.7% respectively when GST was still implemented, he said.

But after GST was zero-rated in June this year, the CPI went down to 0.8%, 0.9% and 0.2% until August.

Chong also said more than 5,000 items, including many daily necessities, are SST-exempted, telling Ahmad not to mislead the people.

“But you are giving figures from the three-month tax holiday. SST started in September,” Ahmad protested.

Chong replied: “I already said the SST impact is not noticeable yet. We haven’t received the latest figures. Don’t make allegations.”

Earlier, Chong told the chamber that the ministry continues to monitor prices, take complaints from consumers and act on profiteering businesses exploiting the reintroduction of the SST. 

He said the people can send information on alleged profiteering and their complaints about prices via WhatsApp to 019-2794317.

Alexander Nanta Linggi (Kapit-BN), one of the MP who sent in questions on the SST, said in his supplementary question that the new government is not doing anything different from the previous BN administration to control prices.

He also asked what the government will do to make sure rural communities like those in East Malaysia can also enjoy reasonable prices like those in the peninsula.

Chong, who is from Sarawak, said while policies remained the same, the implementation will be different under the Pakatan Harapan government.

“This is because when BN was in power, there was widespread corruption and leakages. This we will change to ensure rural communities will also get to buy goods at reasonable prices.

“The previous BN government gave transport subsidies under a programme to standardise prices. But we found so much leakages and the subsidies benefitted others, not the rural folk.

“The transporters became rich. Those people had links to BN politicians,” he said, as some BN lawmakers protested. – October 17, 2018.