KUALA LUMPUR, Aug 31 — Parti Bangsa Malaysia (PBM) today urged popular bread brand Gardenia to cancel or defer its decision to increase the price of its goods so as not to add to the financial burden of the country’s working class.
Its vice-president Dr Satishkumar Govindaraju noted that the prices of many other goods in the country had gone up this year, adding to daily living costs for bottom wage earners and even those in the middle-income group.
“While we understand that the decision to raise prices of the bread was due to the rise in prices of raw material, PBM also recognises that the bread manufacturer is part of one of the largest conglomerates in this country.
“As such, the company would be able to absorb any financial shocks better than smaller enterprises,” he said in a statement.
He said that Malaysia’s economy is still “not out of the woods” yet, adding that all the price increases have a trickle-down effect on the end consumer.
He expressed concern that Gardenia’s decision to hike its price will influence competing brands to do the same.
“We call on Gardenia executives not to make decisions that will have far-reaching consequences based solely on balance sheet considerations.
“At this stage, the company should in the spirit of ‘Keluarga Malaysia’, exemplify good corporate citizenry by absorbing hikes in costs and postpone the decision to raise prices to a more conducive time,” he said.
Gardenia announced three days ago that all its products will see a price hike starting September 1.
The bread maker attributed the price increase to rising cost of raw ingredients such as wheat flour and vegetable fat.
A loaf of 400g Gardenia Original Classic will be priced at RM3 (up from RM2.80), while the Jumbo 600g will be RM4.30 (up from RM4).
The 400g Breakthru Whole Wheat Bread will cost RM4 up from RM3.60, while its 400g Breakthru Bran & Wheatgerm will be RM3.50 (up from RM2.90).
But Gardenia said it will maintain the price of the 500g Bonanza Keluarga loaf at RM2.75, to make it more economical for families with more members.
