Scammers using more sophisticated tactics
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15 APR 2021
FEDERATION of Malaysian Consumers Associations (Fomca) and the National Consumer Complaints Centre (NCCC) would like to alert Malaysian consumers on the sudden spike of scam-related complaints.
Scammers are becoming more sophisticated with their tactics and are hoping consumers would let their guard down. Consumers are urged not to provide their personal, banking or any details to strangers.
Fomca has been receiving around 450 complaints and enquiries related to scams since January. Based on Fomca’s observation, the scammers take advantage of vulnerable consumers, and surprisingly some of the victims are highly-educated.
It is becoming more difficult to know and differentiate between a scam and a legitimate business.
Fomca would also like to urge the relevant authorities to be proactive and play their role in curbing unscrupulous activities. Many consumers are still not aware of scamming activities.
The Communications and Multimedia Ministry and Malaysian Communications Multimedia Commission should play an important role to educate consumers through their channels.
The Domestic Trade and Consumer Affairs Ministry also needs to frequently publish and update all scam-related cases on their website so consumers will be well informed.
Enforcement agencies must also charge these culprits, and increase fines and jail terms for these offences. Scammers are constantly trying to steal consumers’ personal data using fake emails, websites, phone calls and even text messages by using various ways to trick people into providing personal information like bank account numbers and other valuable information, such as credit card numbers.
LETTER | Do a thorough investigation on Celcom-Digi merger
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13 April 2021
LETTER | It has been reported that Celcom Axiata Bhd is merging with Digi.Com Bhd to create the biggest mobile service provider in Malaysia. The proposed merger would result in the emergence of Asean’s largest telecommunications company with anticipated revenue of RM50 billion and net profit of RM4 billion.
This merger will result in market domination and reduce competition in the telecommunications sector. According to experts, with the merger, Celcom and Digi would have a combined share of 67 percent of mobile subscribers and 58 percent of the revenue.
With the merger, there would only be two competing corporations in the telecommunications sector - the merged company and Maxis. This clearly indicates a high level of concentration in the telecommunications sector.
With reducing competition in the telecommunications sector, would this result in higher prices and lower quality for consumers?
In a similar incident (though not a full merger), Malaysian Airline System and AirAsia signed a collaboration agreement to collaborate instead of competing on routes.
With reduced competition, consumers ended up paying higher prices and had fewer choices in choosing their airlines. This was the clear result of market sharing which had a disastrous impact on consumer welfare and consumer well-being.
Fomca had filed a complaint with the Malaysian Competition Commission (MyCC) to investigate this collaboration between MAS and AirAsia and its impact on consumer welfare.
Read more: LETTER | Do a thorough investigation on Celcom-Digi merger
‘Not more than 30 sen for drinking water at eateries’
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12 APR 2021 / 10:42 H
PETALING JAYA: Ideally, water should be served free of charge at eateries. However, if an eatery chooses to bill a customer for a glass of water, it should not be more than 30 sen.
That is the consensus reached between consumer groups and an association of restaurant operators.
They were commenting on a recent announcement that the government is cracking down on high-end restaurants, fast food outlets, franchises and eateries, as well as stalls across the country, that charge RM1 or more for a glass of water.
Deputy Minister of Domestic Trade and Consumer Affairs Datuk Rosol Wahid said notices have been issued to 84 food and beverage outlet operators.
As of yesterday, Kelantan accounted for 14 of the offenders, the highest in the country.
The other states where overcharging for water have also been recorded are Selangor (12), Sabah (eight), Sarawak (eight), Johor (eight), Pahang (seven), Terengganu (six), Kuala Lumpur (five), Malacca (four), Labuan (three), Penang (three), Perlis (two), Perak (two) and Negri Sembilan (two).
Rosol said the notices, issued through Ops Catut 8.0 (Plain Water) that started last Wednesday, was in response to complaints from the public.
Read more: ‘Not more than 30 sen for drinking water at eateries’
LETTER | Has the MyCC protected consumer interests?
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9 April 2021
LETTER | According to the Competition Act 2010, the goal of the law is to “promote economic development by promoting and protecting the process of competition”. The act also specifically states that by doing so it aims to protect the interests of the consumer.
Has the Competition Act in fact protected the interests of consumers?
The biggest impact on the cost of living for consumers is the increasing price of food. Fomca had strongly advocated for a market review on the food supply chain to ascertain if the high price of foods was due to market manipulation.
In August 2019, the Malaysia Competition Commission (MyCC) published and released the Market Review on the food sector. The report had confirmed that one of the key reasons for high food prices was price distortions and manipulations in the food supply chain.
For example, according to the report, the price of ikan kembong has increased by six times between the price received by the fisherman and the price paid by the consumer. Another example of substantial price increase is the price of cabbage; price at the farm is RM1.60 while the consumer pays a retail price of RM3.90, an increase of 143 percent.
Another example of price manipulation was the fish supply chain. Middle men are known to hoard fish when prices are low, thus restricting supplies and forcing the prices of fish to increase. There was also opaqueness in price determination along the supply chain.
MyCC in its report had identified multiple causes of the exorbitant food price in the market. The reasons include market manipulation by middlemen, multiple intermediaries and manipulation of approved permits causing unreasonable increase in food prices.
Read more: LETTER | Has the MyCC protected consumer interests?
Bukit Aman: Online jewellery scams on the rise
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9 April 2021
KUALA LUMPUR: The number of online jewellery scam cases have risen, with 37 cases involving losses amounting to RM239,530 recorded in the first three months this year.
Bukit Aman Commercial Crime Investigation Department (CCID) director Datuk Zainuddin Yaacob said the scam cases recorded in the period was the highest in the past two years.
He said throughout 2019, 21 cases were reported involving losses of RM148,444 and the total rose in the subsequent year (2020) to 44 cases involving RM261,954.
"The development of communication and technology have created online business opportunities, with unlimited access and connectivity, especially when the country is facing the Covid-19 pandemic.
"Therefore, it has become the platform of choice for consumers, but at the same time, it has brought about scams involving the sale of non-existent items," he said in a statement today.
Zainuddin said his department has implemented various measures to ensure that the efforts to curb these activities are effective.
"Yet from the prevention aspect, the involvement of the public is much needed and I urge consumers to be careful in all online jewellery transactions.
The public is reminded not to believe any offer of jewellery that is below market price especially when they're made by individuals you cannot verify," he said.
Fomca calls for medical tribunal, but experts say ‘it’s not so easy’
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April 9, 2021 8:40 AM
GEORGE TOWN: A consumer group has urged the government to set up a medical tribunal to handle complaints of negligence and other matters related to services provided by healthcare providers.
The Federation of Malaysian Consumers Association (Fomca) said such a tribunal would allow those unable to afford lawyers to seek redress for their complaints.
Its president, Marimuthu Nadason, said the National Consumer Complaints Centre run by Fomca receives a number of complaints, but they cannot be addressed as they involve issues that require input from specialists or the hospitals themselves.
“We usually help those with medical-related consumer issues by writing to the health ministry or the healthcare provider concerned,” he told FMT.
“Most of the complainants feel they have been cheated or unfairly treated, so a medical tribunal would be the best avenue for them to seek redress.”
He said the tribunal could be placed under the auspices of the health ministry, and those failing to have their complaints resolved may take their cases to court.
“It also reduces the burden on the court system, with cases taking many years to be settled,” he said.
Marimuthu said the existing consumer tribunal will not be able to cover huge medical claims, so the proposed tribunal should have a ceiling of at least RM3 million.
Easier said than done, say lawyers
Read more: Fomca calls for medical tribunal, but experts say ‘it’s not so easy’
Woman claims bank unfairly auctioned off home, wants BNM to intervene
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8 April 2021
A low-income family has urged Bank Negara Malaysia (BNM) to intervene after claiming their bank unfairly auctioned off their home during the Covid-19 pandemic. Speaking to the media today after meeting an officer from the central bank, 38-year-old tailor M Moganah alleged that the interest rate for her housing loan was raised without due notification.
This resulted in an accumulation of overdue payments, eventually resulting in the bank auctioning off her low-cost flat in Taman Balakong Jaya, Seri Kembangan, Selangor. She claimed she only learned about the outstanding repayments when it was too late - after her home was already sold in October 2020. Moganah lives in the unit with her husband and two young children. She co-owns the unit with her mother - 61-year-old P Letchumy. They have been servicing the home loan for the past 17 years.
“We hope Bank Negara will help us get our home back,” she said, adding that she was not interested in any compensation from her bank. Malaysiakini is withholding the name of the bank pending a response to this story. Malaysiakini is also reaching out to BNM for comment. Elaborating, Moganah said she found an informal eviction notice on her door on Oct 7, 2020, from someone who claimed to have bought her flat.
She then visited her bank, where an officer informed her that her home had been sold a week ago in an auction. The officer also said that the bank had increased Moganah’s monthly housing loan repayment from RM268 to RM325 back in July 2018. She claimed she was unaware of this increase and thus did not alter her monthly direct debit amount. According to Moganah, the bank stated that the reason for the auction was their housing loan repayment was overdue by three months.
She said her bank blamed the lack of notification on her failure to update her contact number and home address. She refuted this, claiming her details were updated back in 2015. The buyer was alleged to have terminated the water and electricity supply to the unit on March 30. Moganah and her family are now temporarily living in another location.
Read more: Woman claims bank unfairly auctioned off home, wants BNM to intervene
Hati-hati penipuan jual beli barang kemas tak wujud
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April 8, 2021 @ 2:46pm
Kuala Lumpur: Sebanyak 37 kes penipuan berkaitan barang kemas membabitkan kerugian RM239,530 diterima pihak polis bagi tempoh tiga bulan pertama tahun ini.
Pengarah Jabatan Siasatan Jenayah Komersial (JSJK) Bukit Aman, Datuk Zainuddin Yaacob berkata, berdasarkan kajian, penipuan membabitkan barang kemas mencatatkan antara kes penipuan tertinggi.
"Pada 2019, sebanyak 21 kes dilaporkan membabitkan kerugian berjumlah RM148,444 dan jumlah kes meningkat kepada 44 kes pada tahun lalu dengan kerugian RM261,954.
"Bagi tempoh tiga bulan pertama tahun ini, sebanyak 37 kes direkodkan dengan jumlah kerugian RM239,530," katanya dalam kenyataan, hari ini.
Zainuddin berkata, peningkatan jumlah kes yang direkodkan dalam kes berkenaan perlu ditangani dengan serius.
"Perkembangan teknologi dan komunikasi mewujudkan peluang perniagaan secara dalam talian kerana akses mudah dan tanpa had khususnya ketika negara berdepan penularan pandemik Covid-19.
"Ia sekali gus menjadikan platform e-dagang menjadi pilihan pengguna. Namun, perkembangan ini juga turut mewujudkan jenayah penipuan penjualan barangan tidak wujud," katanya.
Beliau berkata, pihaknya sudah melaksanakan langkah-langkah yang perlu untuk memastikan usaha pembanterasan dilakukan dengan efektif serta berkesan.
Read more: Hati-hati penipuan jual beli barang kemas tak wujud
Punish water operators for disruptions, says Fomca
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April 5, 2021 3:53 PM
PETALING JAYA: Water operators should also be penalised for disruptions in supply to users, a consumer group has urged.
Speaking at a forum on the right to clean water today, Federation of Malaysian Consumers Associations (Fomca) president Marimuthu Nadason said water disruptions continue to be the norm as there are no laws which set out penalties for the water operators.
Marimuthu pointed out that there were 29 water cuts in the Klang Valley last year alone, and with each water cut lasting a minimum of one and a half days. Consumers in the Klang Valley had to deal with 45 days without water in 2020 – but have still had to pay their water bill in full.
Instead, the National Water Services Commission (SPAN) has key performance indexes which water operators must meet, failing which they could lose their licences. A federal body, SPAN is the executive authority protecting water supply and services in the country.
“This (water disruptions) is still happening due to something simple. The law is not clear about punishment, especially for water operators,” he said.
“In the UK, if there is a planned disruption, water operators have to reimburse (consumers) if their water is not back on within 48 hours. If it is a planned disruption, the water has to be back on in 12 hours.
“In Malaysia, due to the lack of laws to punish water operators, these disruptions are still happening,” he added at the forum.
Read more: Punish water operators for disruptions, says Fomca
Peningkatan hutang isi rumah masih boleh dikawal
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KUALA LUMPUR: Peningkatan hutang isi rumah ke paras 93.3 peratus daripada Keluaran Dalam Negara Kasar (KDNK) dijangka boleh diuruskan memandangkan sebahagian besar peningkatan itu berikutan penyusutan pertumbuhan ekonomi negara tahun lalu.
Tambahan lagi, tegas penganalisis, ujian tekanan yang dijalankan Bank Negara Malaysia (BNM) turut mendapati institusi perbankan berada dalam kedudukan baik dan kukuh serta mampu mendepani krisis kewangan.
Ahli Ekonomi MIDF Research, Abdul Mui'zz Morhalim, berkata hutang isi rumah meningkat pada kadar lebih pantas iaitu 5.5 peratus dalam separuh kedua 2020 disokong kadar faedah lebih rendah berikutan keputusan BNM untuk menurunkan Kadar Dasar Semalaman (OPR) sebanyak 125 mata asas tahun lalu bagi menyokong pertumbuhan ekonomi negara.
Namun, beliau berkata, risiko daripada paras hutang isi rumah yang tinggi itu dijangka mampu diurus dan masih terkawal.
Beliau berkata, kemungkinan kegagalan pembayaran pinjaman apabila moratorium bayaran balik pinjaman berakhir dijangka agak rendah dan terhad kerana 95 peratus daripada 1.5 juta pemohon mendapat kelulusan bagi menstruktur semula pinjaman mereka.
"Sekiranya perlu, institusi perbankan juga mampu untuk meneruskan pemberian bantuan secara bersasar kerana bank juga memperoleh lebih banyak maklumat bagi mengenalpasti pelanggan yang masih memerlukan bantuan tambahan.
"Kelulusan bagi pinjaman yang diputuskan oleh pihak bank telah mengambil kira latar belakang, sumber pendapatan dan bebanan kewangan sedia ada peminjam bagi menilai kemampuan mereka untuk membayar balik serta menguruskan hutang," katanya kepada BH.
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