Factors for the occurrence of profiteering:

1. Traders raise prices not in line with the increase in the cost of goods.

2. Traders make a sharp increase in prices without any cost increase that causes the profit percentage to exceed the predetermined basis for the current year.

The factors that increase the price of goods in rural areas compared to urban areas are due to:

1. Increase in the cost of goods including transportation and storage of goods taken.

2. There is a concentration on the supply of goods by only a few traders.

3. There are many distribution chains before the supply of goods to traders in rural areas.

4. Lack of information or current legal information.

KPDN always conducts monitoring and enforcement to ensure that the prices of goods in the market are reasonable.

Among the efforts taken and to be improved are:

• Implement strict enforcement under the Price Control and Anti-Profiteering Act (AKHAP) 2011, namely:

• Enforcement against unreasonable profiteering or profit-taking by traders under the Price Control and Anti-Profiteering (Mechanism for Determining Unreasonably High Profits) Regulations 2018 which came into effect on 6 June 2018;

• More aggressive monitoring and enforcement covers the entire distribution chain of goods and services nationwide under Ops Catut, Ops Rantai and Ops PASAR. This operation has mobilized all enforcement personnel of the Ministry nationwide to curb the issue of rising prices of goods in the market;

• Issue a written notice under Section 21 of the AKHAP 2011 to any party found to have increased the price dramatically and significantly to obtain feedback and explanation in writing on the price increase to determine the occurrence of the profiteering element;

• Enforcement of the Price Control and Anti-Profiteering (Price Marking of Goods and Charges for Services) Order 2020 which requires traders to display price lists or place price tags on goods and services sold;

• Implementation of the Festive Season Maximum Price Scheme to control the prices of certain essential goods during major festive seasons in the country and the Determination of the Maximum Price of Chicken and Chicken Eggs for a certain period for the purpose of stabilizing prices; And

• The maximum price is set for refined white sugar, face masks, Covid-19 Test Kits, LPG, Ron95 petrol and diesel to ensure that the price sold does not exceed the set price. However, the ministry will extend price controls on other essential goods according to conditions and needs.

• Conducting engagement programmes to provide explanations, advisory services and cooperation with traders in understanding and complying with the laws enforced;

• Implement collaborative measures with relevant Government agencies such as the Ministry of Agriculture and Agro-based Industry (MAFI) to ensure adequate supply and offer at reasonable prices under the National Living Action Council;

• Increase the omnipresence of enforcement officers at consumer-focused locations to create a safe and ethical business environment.

• Provide various channels of complaint distribution to facilitate the people to submit complaints related to price issues for action by the Ministry.

No. The increase in the price of goods is a trigger for the mistake of levying.

No. The determination of profiteering is determined based on a comparison of the percentage of profit of goods based on the elements of the selling price of the goods and the cost of a trader or premises itself and not between premises. However, the price increase is the trigger for the profiteering check and an analysis will be made to see if the increase causes a percentage increase that exceeds the percentage of the trader in the current year.

The price of goods in a Hypermarket differs from the price of goods in a grocery store because:

• Buying goods in bulk or in large quantities at the hypermarket level when compared to retail stores that take small quantities from suppliers will cause the price of goods to be more expensive at the retailer level as buying in bulk will find discounts or cut of price. 

• The purchase of goods in cash by retailers and on credit by hypermarkets also causes higher prices charged by retailers to cover the cost of purchases or cash used.

Notice 21 is a written notice issued to traders under Section 21 of the Price Control and Anti-Profiteering Act (AKHAP) 2011. The purpose of the notice is to be submitted to traders to obtain justification and explanation regarding the price of goods. Traders are required to provide relevant supporting documents to support any changes in costs and selling prices

The Enforcement Division will obtain information from traders through notices under Section 21 AKHAP2011 and conduct a profiteering analysis whether the increase made is illegal or otherwise.