The Kuala Lumpur Chinese Assembly Hall (KLCAH) suggested that the government, in response to the current difficult economic situation and rising cost of living, should take immediate action to implement several micro and macro policies to avoid things from getting out of hand further.
The KLCAH’s suggestion include the need to implement a politically stable and pro-business environment; address labour shortages; help industries to transform themselves; adjust fiscal policy to give more tax incentives; implement another round of economic incentives; and to allow chicken prices to float freely to stabilize the supply of chickens.
The KLCAH discussed the latest situation in the country and made suggestions at their committee meeting recently. It believed that the current situation is bad enough for the people and the country, and if the government does not take strong measures, a bleak future will await us.
The KLCAH points out in a statement that our country has been in the stage of endemic, although the situation is looking up, and the number of confirmed cases has been stabilizing, and everyone expects that various industries, including entertainment, will reopen, but some sectors, such as tourism, restaurants, and hotels, still need time to recover to the pre-pandemic level.
“Therefore, the government needs to pay attention to rising prices, continue to provide subsidies, and take measures to stabilize prices and reduce the burden on the people.”
They pointed out that in the face of the strong US dollar, Ringgit continues to depreciate. Ringgit’s value against the Singapore Dollar has dropped to a record low since the separation of Singapore from Malaysia.
“A weak Ringgit and rising international oil prices have resulted in inflation. The people and businesses alike are taking the hit. Things get worse with a long-term labour shortage in sectors such as construction, plantation, and manufacturing. Profiting from the rising palm oil prices is still an illusion to many smallholders because of the labour shortage.”
KLCAH said that the government must quickly find solutions to these problems that plague the people and the economic sectors.
Datuk Seri Dr Chai Kee Kan, the president of the KLCAH, pointed out that at first he thought the country’s economy would bounce back after the pandemic is under control, not expecting the war in Ukraine to trigger another crisis of food shortages and rising raw material costs.
“Coupled with the disruption of the global supply chain because of the pandemic lockdown in China, the world’s economy and people’s livelihood suffered further damage.”
He said that the complex global economic chain reactions have severely affected the daily lives of people and businesses, and it is apparent that the prices of our daily necessities have increased significantly by 10-20% in the past three months.
“The short supply of chicken alone has hit our lives hard. With the price of chicken feed rising by over 100% in the past 2 years while the ceiling price of chicken has only increased by 16.67%, poultry farmers can no longer survive in the long run. It is time for the government to let the price of chickens float freely to protect the local food supply chain.”
He said that the shortage of chickens will concomitantly cause the price of other meats to rise because of higher demand, and the resulting domino effect will become more and more apparent.
The recommendations of the KLCAH:
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The government must create a politically stable and pro-business environment to attract foreign direct investment, catalyze economic recovery, sustain our economy, and improve people’s lives.
- The government must address the labor shortage issue as soon as possible so that all sectors can develop healthily.
- In the long run, the government must help transform industries, just like the government’s Industry 4.0 plan, to avoid overly depending on foreign workers.
- It is imperative for the government to adjust the fiscal policy and give more tax incentives to help the people sail through the inflation.
- The government needs to implement more measures for long-term economic growth and sustainable development, and introduce more effective economic revitalization packages.
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It is time for the government to let chicken prices float freely to protect the local food supply chain.