Why do onions cost most in Penang? Domestic Trade Ministry is on the case

GEORGE TOWN, Jan 9 — The Domestic Trade and Consumer Affairs Ministry has instructed its enforcement team to investigate the pricing mechanism for onions at retailers in Penang.

Minister Datuk Seri Saifuddin Nasution Ismail said he had instructed his enforcement team to use Section 21 of the Price Control and Profiteering Act 2011 to get to the bottom of the prices, said to be the highest in the country.

“I am trying to get to the bottom of the problem by exercising Section 21 of the Act to obtain all information from the retailers on their suppliers, the wholesalers, importers and the costs involved,” he said at the opening ceremony of TF Value-Mart in Balik Pulau this morning.

He said the enforcement will find out the prices set by the suppliers, wholesalers and importers to find out how the final retail prices are set, noting Penang had the highest range in the country and that there isn’t a supply shortage currently.

He said he had received reports that the price range for onions in Penang was between RM4.90 per kilogram and RM24 per kilogram.

Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail speaks to reporters at the official opening ceremony of TF Value-Mart in Balik Pulau January 9, 2020. — Picture by Sayuti Zainudin

He said there was no shortage of onions in the country as supplies could be imported from China, Pakistan, Holland and Egypt, though he acknowledged a local preference for onions from India, which was its biggest supplier until recently.

“The prices fluctuate because Malaysians prefer Indian onions so the demand for Indian onions is high,” he said.

India, which is short of its own crop, has stopped exports.

Saifuddin said Malaysian importers have since resorted to sourcing other countries for onions.

FT Value-Mart Chief Executive Officer Ho Mun Hao said the price of onions at the grocery store chain are now at a promotional price of 98 sen per kilogram.

He said it gets its onion supplies from Egypt as their quality is similar to that of Indian ones.

FT Value-Mart opened its first store in Penang today located in rural Balik Pulau.

The supermarket chain has 33 stores throughout the country and has plans to open three more stores in Perak and Johor.

Ho said they are also scouting a second location in Penang.

TF Value-Mart is usually located in rural areas and offers products and grocery items at low prices.