Price hike and the link to corruption

SHAH ALAM: Corruption watchdog, Transparency International (TI) has raised alarm over the worsening Consumer Price Index (CPI), linking it to the "corruption culture" in the country.

This comes after Malaysia's CPI stood at 62 out of 180 countries from the previous 57 in 2020.

In a Sinar Harian editorial published today, it said this shows corruption is on the rise, adding that the late former Johor Corp (JCorp) president and CEO Tan Sri Muhammad Ali Hashim had said that corruption is a major cause of price hike.

The report published on Feb 25, 2014 - "How the Islamic Economy Can Control Market" organised by Sinar Harian focuses on the importance of rising against business monopoly and culture of corruption that was rampant at various levels.

Looking back at this statement, it is not surprising that the sharp price hike and the cost of living are among the major causes and symptoms of corruption.

To reverse leakages in the system, the government must curb corruption at all levels from manufacturing, production, supplies including within enforcement officers, as there is no point in introducing laws, regulations or price control policies if enforcement officers are found to be corrupted.

Due to that, the government's subsidies and tax breaks are only a short-term solution to reduce the temporary hike on goods. If the government fails to act, it would fail to curb prices of goods, especially within the food industry.

Eventhough there are other factors involved such as inflation, geopolitics and climate change but the government fails to at least handle corruption, people will continue to pay higher prices.