Unregulated capitalism allows for profiteering led to public brawl

Ministry of Domestic Trade, Co-Operatives, and Consumerism (KPDNKK) Secretary-General, Alias Ahmad showing dissatisfaction towards the authority for not taking action in Kota Raya cheating incident.

Mobile phone shops situated at Kota Raya shopping complex opposite Chinatown in Kuala Lumpur remained closed following a recent public brawl where a group of youngsters stormed one particular shop and attack its employees.

Ownership of a couple mobile phone outlets at the Kota Raya Complex switched hands recently following the incident where Persatuan Pengguna Islam Malaysia (PPIM), a consumer-rights non-governmental organisation (NGO), raided the mall. A notice stated that buyers with disputes should liaise with the previous operators from whom they had bought the mobile phones, however, no contact details of the old owners were posted. A staff at one of the shops confirmed that the notice was placed today, but was unaware of who the old or new owners were and had no contact with either.

Ministry of Domestic Trade, Co-Operatives, and Consumerism (KPDNKK) Secretary-General, Alias Ahmad, shown discontent on why no action was taken by the authorities. Alias clarified that the victim had lodged a report with the Tribunal for Consumer Claims in Kuala Lumpur and the Tribunal had instructed the mobile phone shop to refund the sale, however he was shocked knowingly that the victim had returned the next day only to complain that the authorities were uncooperative and refused to take action. Alias also mentioned that KPDNKK had raided mobile phone stores in Kota Raya Complex this year and seized counterfeit devices and accessories totaling RM9,037.

Dang Wangi deputy police chief Supt Habibi Majinji explaining to public on Kota Raya Complex incident

Two people were injured at the Kota Raya Complex after a brawl broke out between workers at a mobile phone shop and about 20 people claiming to have been scammed by the shop. Police have arrested a suspect in connection with a brawl that broke out between workers at a mobile phone shop in the Kota Raya shopping complex and a group claiming to have been scammed by them.

Dang Wangi deputy police chief Supt Habibi Majinji stated that the 38 year old man was arrested at the scene of the crime as soon as the riot was brought under control. The suspect works as the parking attendant at the shopping complex and was suspected as part of the group which assaulted the retail workers.

Supt Habibi mentioned that the police are investigating whether the suspect was one of the individuals allegedly swindled by the traders. He also stated that the images of the suspects would be published in due time.

The case is probed under Section 148 of the Penal Code for rioting with weapons and Section 394 of the Penal Code for voluntarily causing injury while committing robbery.

In Malaysia Critiques opinion, by looking at the sections of the probe, it looks like police is committing a double standard probe whereby only the rioters gets probed while the presumed cheaters who caused the riot was left unchecked.

Domestic Trade, Cooperatives and Consumerism Ministry enforcement director Mohd Roslan Mahyudin rubbishing traders claim that their goods were cheap.

Domestic Trade, Cooperatives and Consumerism Ministry enforcement director Mohd Roslan Mahyudin stated that some traders in the Kota Raya shopping complex in Kuala Lumpur perform business transactions in an unusual way.

"They say their mobile phones and the accompanying gadgets are cheap but when customers go to buy them, they will say the customers have to pay more for the software and other things. You don’t buy the phone and its software separately. They come together," he said in The Star Online report.

Malaysia Critique sees this as a hidden charge where the goods sold may look cheap but the actual total price is more expensive.

Roslan also mentioned that the traders who sells counterfeit goods are hard to detect as they would only display dummy goods to avoid having their product being confiscated. The enforcement director stated that KPDNKK had done 92 raids on stores nationwide this year and had confiscated around RM600,000 worth of imitation mobile phones.

Rural and Regional Development Minister Datuk Seri Ismail Sabri Yaakob acknowledging public not to presume Kota Raya incident as a racial clash

Rural and Regional Development Minister Datuk Seri Ismail Sabri Yaakob said the handphone clash was the result of a dissatisfaction problem on transaction between buyers and sellers. "This is an isolated case. The customers were dissatisfied and they returned to the shopping complex to meet the seller," said the minister. He also advised business owners should be more ethical in conducting business following a professionalism code of ethics.

The statement by Ismail Sabri was announced at Anggerik Mall, Shah Alam which would be estimated to be the next MARA Digital location.

Prime Minister Dato Seri Najib Razak raging at public for taking the laws into their own hands

Prime Minister Dato Seri Najib Razak advices the public to report to the relevant authorities should there be any case of fraud or cheating for action to be taken.

“If any case of business cheating or fraudulent transaction, report to the authorities for investigation and necessary action taken”. ”Don’t take the law into your own hands” said the prime minister in a post on his official facebook page.

“I see as a serious matter the brawl at Kota Raya Kompleks which created public disharmony” stated by Najib as reported by Malaysian Insider while Minister in Prime Minister Department Tan Sri Joseph Kurup sees the brawl as a racial issue. Rural and Regional Development Minister Datuk Seri Ismail Sabri Yaakob however had rubbished the racial brawl statement given Joseph Kurup.

Since BN, PKR, and DAP are all fighting for consumer rights, they should all sit together and find a feasible resolution to this issue with unregulated capitalism as it would benefit everyone. Consumer rights should be taken seriously as similar event had happened at LowYat Plaza just recently due to similar reason which is lack of consumer rights. They should definitely show an act of professionalism as there is absolutely no point in fighting each other when your fighting for a similar cause. Didn't Najib proposed a unity government back right after GE13? No reason government and opposition couldn't work together.

Is Express Rail Link Sdn Bhd (ERL) profiteering?

Umno president and Prime Minister Datuk Seri Najib Razak

Umno president and Prime Minister Datuk Seri Najib Razak notified the public that he was aware with the recent public outcry on the controversial Express Rail Link (ERL) train price hike which will take effect 1 January 2016, but he blamed it on a "one-sided" concession agreement signed in 1997 during Former Prime Minister Tun Dr Mahathir Mohammad’s administration.

In his speech during the Annual UMNO General Assembly at PWTC, said it was a long-term concession contract and he accepted the "legacy problem" which he inherited when he became prime minister, but stressed that he was against the ERL price hike.

"People are angry because the fare has risen from RM35 to RM55. But gentlemen, you do not know, the agreement was signed in 1997. Not this year. 1997. Long-term concession. Although the numbers may seem miniscule, however when it is looked at a specific view, the increase in price was a massive 57% hike which may seem like an unreasonable increase in cost for those who fly regularly.

Najib also stressed out that the federal government did not allow it to rise every five years when he became prime minister, and that was why the fare remain unchanged for 14 years. However the RM2.9 billion compensation required to be paid to ERL Sdn Bhd seem like a non-beneficial use of public funds as it would only benefit YTL Corporation whom is the major shareholder rather than the mass public.

Pokok Sena MP Mahfuz Omar

Pokok Sena MP Mahfuz Omar had given Land Public Transport Commission (SPAD) a new acronym ‘Suruhanjaya Penghisap Darah’ (blood sucker commission) over their approval for allowing train operator Express Rail Link (ERL) to increase the one-way fare for KLIA Ekspres by 57 percent, from RM35 to RM55, starting 1 January.

Mahfuz stressed out that the hikes to taxi, express bus, monorail, KTM Komuter and LRT fares had severely burdened the public and opposed approval to the hikes by SPAD. He also stressed out that moving from public transport to private vehicle as a non-feasible option as they would face with tolls which rates have also gone up recently.

The PAS lawmaker pointed out despite ERL price had not increased since 2002, the number of passengers had increased by 40%. He also pointed out that ERL Sdn Bhd is also getting RM5 out of RM51 of airport tax for international flights, so there is completely no excuse of unprofitability.

From the arguments pointed out by Pokok Sena MP Mahfuz Omar, Malaysia Critique thinks the recent price hike was non justifiable and nothing but a complete act of profiteering. However it’s up to the readers to decide if ERL Sdn Bhd really is profiteering.

Airasia Airline tycoon Tan Sri Tony Fernandes - posting discontent towards erl overpricing

Tan Sri Tony Fernandes posted on his twitter page showing discontent on ERL new pricing as unreasonably expensive as a train ride to the airport is more expensive than an airline ticket. "On the ERL. It's a great product but it's expensive. Don't understand. They got all of Airasia passengers. Cheaper to fly," he tweeted on Monday. Not only Land Public Transport Commission (SPAD)’s approval on KLIA Express by ERL Sdn Bhd price hike created a public outcry, even the airline industry are starting to show disapproval as the increased transport cost to the airport had affected the industry.

Malaysia Critique seems to agree with Tan Sri Tony Fernandes as his argument is totally valid on showing how ridiculous it is when the cost of flying is cheaper than the cost coming to the airport. A massive 57% hike on train ride to the airport will definitely give a negative impact towards the airline industry and may recess the industry due to YTL’s selfishness.

KLIA Express by Express Rail Link Sdn Bhd (ERL)

Express Rail Link Sdn Bhd (ERL) defended its 57% increase by pointing out that the actual approved price by the Land Public Transport Commission (SPAD) was an even higher price of RM64. The company had stressed out that the RM55 price they decided to implement was a discounted rate out of their own generousity.

ERL stressed out that the fare revision for a one-way trip between KL Sentral and KLIA/klia2 from RM35 to RM55 was in accordance with the concession agreement it had signed with Putrajaya in 2002, adding that the hike had been approved by the government rather than themselves.

ERL pointed out that the strategic pricing was to keep the price of their service competitive compared to taxi. The company also pointed out that are aware of the price sensitivity and they ensure the public by promising to find ways to cut the costs even further.

Deputy Transport Minister Datuk Abdul Aziz Kaprawi argued that the cost of the train service had doubled compared to back in 2002 as a counter statement to Serdang MP Dr Ong Kian Ming whom had urged the government to suspend the proposed fare increase and instead conduct an open inquiry to establish a reasonable price revision following a public outcry.

Malaysia Critique thinks that Express Rail Link Sdn Bhd (ERL) argument of price hike simply because a concession agreement allows is not socially justifiable and a rather act of profiteering, however it’s up to the readers to decide if a price hike just because you can is acceptable.

Serdang MP Dr Ong Kian Ming urging the government to suspend Express Rail Link Sdn Bhd (ERL)’s approved proposed fare increase

Serdang MP Dr Ong Kian Ming demanded Putrajaya to disclose the concession agreement with Express Rail Link Sdn Bhd (ERL) for the public to decide if the recent fare hike for tickets was justified. He also urged the government to suspend the proposed fare increase and instead conduct an open inquiry to establish a reasonable price revision following a public outcry.

Dr Ong argued out that ERL did not fork out a single sen on klia2 construction cost in which the company had heavily benefited by gaining a massive 44% increase in passengers from the new airport opening. Not only the hike was unjustifiable, it would also seem one-sided for ERL to further gain 57% increase in tariff just one year after a spike in passenger volume which somewhat seem like an act of profiteering.

Without the disclosure of the actual concession agreement, Malaysia Critique is unable to determine if the agreement was really one sided, we intend on rewriting a review upon disclosure on ERL concession agreement. It is still up to the readers to decide if Express Rail Link Sdn Bhd (ERL) is profiteering or genuine.

Prime Minister Najib Razak announcing discounts on Express Rail Link (ERL) and KTM Komuter

Acknowledging public outcry, Prime Minister Najib Razak directed and enforce upon KTM Berhad and ERL Sdn Bhd to implement a discount for pupils, university students, the disabled and senior citizens. Knowingly that public transport is a form of necessity for some, the prime minister issued a veto as an act of consideration towards the mass public especially low to middle income wage earners.

Najib issued an all new 1Malaysia Students Discount Card (KADS1M) in which he had enforced upon ERL to provide holders with a 30% discount. The disabled and senior citizens using the ERL transit service would also receive the same benefit as enforced by the prime minister. The prime minister also promised that he would look into enforcing KTMB to give more discounts in the near future.

The prime minister notified the public that he was aware of the people’s anger and promised that several measures will be taken into action but did not specify what the measures are.

Federation of Malaysian Consumer Associations (Fomca) deputy president Mohd Yusof Abdul Rahman dissatisfied with the offered discounts announce by Prime Minister Najib Razak

Federation of Malaysian Consumer Associations (Fomca) deputy president Mohd Yusof Abdul Rahman stated that they welcomed the discount, however it is not enough as the scope of those who would benefit from it were marginal.

He argued that only the disabled, elderly, students, and civil servants benefited from the discounts and nobody in the private sector benefited from it while being the majority user of the rail service. He hoped that the government would add more incentives to cover a wider scope rather than only the classified group.

Youth and Sports Minister Khairy Jamaluddin suggested that the discounts be extended to Youths under 25, BR1M recipients and wage earners below a certain level.

Following a show of dissatisfaction by Federation of Malaysian Consumer Associations (Fomca), Youth and Sports Minister Khairy Jamaluddin suggested a wider scope for the discount which extend the benefits towards Youths under 25, BR1M recipients and wage earners below a certain level.

He thank the Prime Minister with gratefulness for the current discount but argued that he had hoped it would be entitled for a larger group of people. Khairy’s suggestion up to date is still under consideration and there has yet to be a directive for neither rail company to implement.

Conclusion, Malaysia Critique is unable to determine if the concession agreement is really ‘one-sided’ as proclaimed by Prime Minister Najib Razak until public disclosure of the concession agreement. Is ERL profiteering? That is for the readers to decide.