MALAYSIANS need to stop panic-buying due to fears over the coronavirus, as the practice only harms others and the overall economy, a consumers’ group said today.

The Federation of Malaysian Consumers Associations (Fomca) said panic-buying creates shortages, which will in the end harm vulnerable groups.

“Secondly, panic-buying causes prices to increase substantially, as it causes the suppliers to increase prices to make excessive profits,” said its president Dr. Marimuthu Nadason.

This year alone, 19 retailers have been prosecuted under the Anti-Profiteering Act for price-gouging, said Marimuthu.

“Panic-buying also creates a toxic environment. Shortages of parking spaces, long queues at cashiers, empty shelves and very anxious and fearful consumers, desperate to make their purchases.

“In fact, according to one report, in Malaysia, hoarding has driven a 800% increase in weekly sales of hand sanitisers.”

Fomca weighed in on reports of panic-buying by Malaysians worried that a government-imposed lockdown will lead to shortages of food and toiletries.

Other countries hit hard by Covid-19, such as China and Italy, have already imposed lockdowns in certain areas to control the spread of the virus.

The Malaysian Insight’s own survey found that stores in Kuala Lumpur and Penang were already running low on items such as rice, powdered milk, toilet rolls and diapers.

Fomca urged the government to provide timely and accurate information to the public on the virus situation in the country to reduce the public’s anxiety.

“If the government can address public fears and uncertainties, it can potentially reduce panic and last minute-buying,” he said, adding that the Health Ministry has done well in dealing with the virus.

“Fomca calls on all Malaysians, during this time of crisis, to trust the government in handling the situation, practise good hygiene and stop the panic-buying.

“With normal spending patterns, all essential foods and other items would be available and prices would drop to ‘normal’. – March 16, 2020.