KUALA LUMPUR: The manufacturer of the popular bread brand, Gardenia, has been urged to rescind or postpone its decision to raise its prices starting tomorrow.
Parti Bangsa Malaysia vice-president Dr Shatish Kumar said the timing of the proposed raise for what is a common household consumable was most unfortunate and undesirable.
"Many Malaysians are still languishing, especially with the global inflation brought on by the war in Ukraine and disruption in the world supply chain.
"While much of our economy has re-opened following earlier restrictions imposed to curb the spread of Covid-19, our economy is not out of the woods yet.
"Our economy is still chugging along and the full impact of the trickle-down effect has not reached the far ends of the B40 and even M40 groups," he said in a statement today.
Gardenia Bakeries (KL) Sdn Bhd (Gardenia KL) recently said the price hike was attributed to significant increases in the cost of ingredients such as high protein flour (by 25 per cent), egg white powder (more than 100 per cent), whole meal flour, gluten, skimmed milk, bread improver and packaging materials, among others.
The revised prices will see its Original Classic priced at RM3.00 per loaf; Gardenia Wholemeal at RM4.00 per loaf; Gardenia Toast'em range at RM5.50 per loaf; Gardenia Twiggies at RM2.00 per packet; Gardenia Waffles at RM1.50, and Gardenia cream rolls at RM1.10 per piece.
According to Dr Shatish, raising prices of the bread at this juncture will only add unnecessary burden to the people, especially those in the B40 and M40 groups.
He said PBM was also worried that the proposed hike will lead to a domino effect in prices of other goods and services. It is also possible that competing brands will also take the opportunity to raise prices.
"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. 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 added.