Monday, July 04, 2022

Facilitate business, not wage ‘jihad’ on middlemen, govt told



Facilitate business, not wage ‘jihad’ on middlemen, govt told


Dr Lee Boon Chye said the services of middlemen in transportation and distribution play an important role in economic growth. (Bernama pic)


PETALING JAYA: An opposition MP has criticised the government’s “jihad” against middlemen, saying they only made excessive profits because of inefficiencies in the market.

Describing the government’s move as a “stupid idea”, PKR’s Dr Lee Boon Chye said Putrajaya should instead focus its efforts on fixing the inefficiencies in the market.


“The government’s role is not to wage ‘jihad’ against middlemen, but to draw up policies or help improve market efficiencies by upgrading rural roads, providing internet access and assisting farmers in automation,” the Gopeng MP said in a statement.

He was responding to Prime Minister Ismail Sabri Yaakob who, on Saturday, said he wanted the entire cooperative movement to keep up the “jihad” against middlemen through Angkatan Koperasi Kebangsaan Malaysia Berhad (Angkasa) to improve the nation’s food security.


Ismail had claimed that the price and supply of goods are currently determined by middlemen, thus the need for the “jihad”.

Lee said the services of middlemen in transportation and distribution play an important role in economic growth.

Using the example of a man who has a banana plantation, the former deputy health minister said without a middleman, the farmer would not only have to plant the fruits but also harvest, pack, transport, and sell his produce at the market.

Lee said the real issue to combat is profiteering by middlemen, which happens because of infrastructure and regulatory problems or a lack of transparency in the market.


He said an efficient market would allow all parties in the supply chain to make better profits at lower retail prices.


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