Put proper people in charge of tackling inflation, says Zaid
Zaid Ibrahim says that inflation is an economic issue, and has nothing to do with any religiously worded slogan.
PETALING JAYA: People who understand how economies work should lead the effort to tackle rising prices, former minister Zaid Ibrahim said today.
Criticising the government’s formation of an anti-inflation “jihad task force”, he said some Umno members were well qualified to take charge of such a team but have not been given the opportunity.
His comments come in the wake of the formation of the task force, which is headed by communications and multimedia minister Annuar Musa.
Zaid said: “Inflation is an issue of economics and nothing to do with any religiously worded slogan. The problem of rising prices cannot be solved by setting up a religious-sounding panel or by price controls on chicken, or through sloganeering.”
The government’s earlier “jihad against middlemen”, price manipulation and hoarding had also not produced results, he said.
He questioned the need for the task force, as the government already had an economic action council and a national cost of living council, both chaired by the prime minister, and the national recovery council chaired by former prime minister Muhyiddin Yassin.
Zaid said inflation could not be eliminated but must be managed. “Countries need inflation in order for the economy to grow, but it has to be manageable and tolerable inflation, alongside income and salary growth,” he said.
He said the flip-flop in policymaking, and announcements about removing and then reverting back to price ceilings, would only add to declining business and consumer confidence.
“The basic fundamentals of the economy are all about supply and demand,” he said.
“The distortion in market forces by putting a ceiling price will only worsen market conditions as the government cannot indefinitely subsidise the price of chicken. Not only will the price not go down, it will also create shortages in the market as in the past few months.”
He said there was also a need for action against cartels making excessive profits.
PETALING JAYA: People who understand how economies work should lead the effort to tackle rising prices, former minister Zaid Ibrahim said today.
Criticising the government’s formation of an anti-inflation “jihad task force”, he said some Umno members were well qualified to take charge of such a team but have not been given the opportunity.
His comments come in the wake of the formation of the task force, which is headed by communications and multimedia minister Annuar Musa.
Zaid said: “Inflation is an issue of economics and nothing to do with any religiously worded slogan. The problem of rising prices cannot be solved by setting up a religious-sounding panel or by price controls on chicken, or through sloganeering.”
The government’s earlier “jihad against middlemen”, price manipulation and hoarding had also not produced results, he said.
He questioned the need for the task force, as the government already had an economic action council and a national cost of living council, both chaired by the prime minister, and the national recovery council chaired by former prime minister Muhyiddin Yassin.
Zaid said inflation could not be eliminated but must be managed. “Countries need inflation in order for the economy to grow, but it has to be manageable and tolerable inflation, alongside income and salary growth,” he said.
He said the flip-flop in policymaking, and announcements about removing and then reverting back to price ceilings, would only add to declining business and consumer confidence.
“The basic fundamentals of the economy are all about supply and demand,” he said.
“The distortion in market forces by putting a ceiling price will only worsen market conditions as the government cannot indefinitely subsidise the price of chicken. Not only will the price not go down, it will also create shortages in the market as in the past few months.”
He said there was also a need for action against cartels making excessive profits.
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