KUCHING: Businesses in Sarawak have been urged to act responsibly and fairly in setting prices following the nationwide rollout of Ops Kesan 4.0 by the Ministry of Domestic Trade and Cost of Living (KPDN), to prevent profiteering under the revised Sales and Services Tax (SST) framework.
During a spot check at Farley Kuching today, Sarawak KPDN Director Matthew Dominic Baran reminded business operators not to exploit the SST adjustments as an excuse to arbitrarily hike prices or unwarranted service charges on consumers.
The operation, which came into effect on July 1, forms part of the ministry’s proactive effort to ensure price stability and protect consumers as the government widens the scope and rate of SST.
“Enforcement teams are closely monitoring businesses across the state, especially those involving items and services newly subjected to SST.
“Regulatory measures will take into account four key factors, namely types of goods and services, registration status of businesses under the Malaysian Customs Department (JKDM), timing of SST registration, and margin of price adjustments.
“Any unreasonable increase, that appears to be profit-driven without legitimate cost justification, will not be tolerated,” he said.
Matthew shared that between July 1 to 14, enforcement officers have inspected 37 premises involving 176 Stock Keeping Units (SKU) in Sarawak.
While most traders were found to be compliant, he warned that action would be taken against any business found to be profiteering.
“Under Section 14(1) of the Price Control and Anti-Profiteering Act 2011, individuals convicted of profiteering can face fines of up to RM100,000 or three years’ imprisonment, or both.
“Repeat offenders may be fined up to RM250,000 or jailed for five years.
“Companies can be fined up to RM500,000 for a first offence, and up to RM1 million for subsequent offences,” he said.
To ensure smooth compliance, businesses have been advised to consult JKDM and the Ministry of Finance (MOF) on SST-related policies, while KPDN remains open for advisory support regarding pricing mechanisms and anti-profiteering measures.
