1st March 2022 - 3 min read
Several traders and breeders’ association have cautioned that certain goods in Malaysia may see a significant increase in price due to the ongoing Russia-Ukraine conflict, particularly if the government does not take steps to intervene.
According to a number of associations, the conflict will result in the price hike of certain goods, including oil, as well as commodities such as corn, soybean, and palm oil. This, in turn, may start a domino effect that leads to a price increase in other items and necessities.
Specifically, advisor of the Federation of Livestock Farmers’ Associations of Malaysia (FLFAM), Datuk Jeffrey Ng said that the price of chicken is forecasted to surge further in the next month. This is because the main ingredients to produce chicken feed – namely corn, soybean, and palm oil – have soared since the conflict began.
“Ukraine is a producer of wheat and corn, and controls about 70% of the world market. The war has caused a spike in corn prices. Concurrently, the prices of soybean and palm oil have also increased, with the price of crude palm oil yesterday rising to a record high of more than RM6,800 per metric tonne. These are all main ingredients for chicken feed, and the factories have informed that there will be an increase in the price of chicken feed next month,” said Datuk Jeffrey, adding that the rate is still unknown as it depends on the period of conflict between Russia and Ukraine.
Meanwhile, the president of the Malaysian Federation of Hawkers and Petty Traders Association, Datuk Seri Rosli Sulaiman said he also expects there to be an increase in the prices of non-controlled goods due to increase in oil prices.
“The increase in oil prices would affect the logistics costs, certain raw materials and operating costs. Factories and wholesalers may have to increase their selling prices, and the same goes with traders. Therefore, I hope that the government will maintain the oil subsidy to ensure no significant impact on the prices of goods,” Datuk Rosli further shared.
Similarly, the chairman of Selayang Wholesale Market Hawkers and Petty Traders Association, Mohammad Pandu Insani Yahya agrees that the prices of goods – such as chicken – will be impacted. “The same goes for the prices of imported goods, should the source countries also be affected by the conflict,” he said.
The tension between Russia and Ukraine officially erupted into war Thursday last week, which not only shocked the world, but also sent global markets reeling. At the heels of that, the Domestic Trade and Consumer Affairs (KPDNHEP) Minister, Datuk Seri Alexander Nanta Linggi had cautioned traders to avoid using the conflict as an excuse to raise the prices of their goods or services indiscriminately. He further commented that although conflicts and wars could cause price hikes in goods and services, it may not necessarily affect all corners of the world.
(Source: New Straits Times)
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