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Your Case is ours

Watchdog stands firm on unjustified, opaque price hikes

Thursday • December 28, 2006

Letter from Yeo Guat Kwang
President Consumers Association of Singapore (Case)

I refer to the letters by Leong Sze Hian ("Price hikes and the role of the consumer watchdog", Dec 23) and Jeffrey Law Lee Beng ("A Case for the masses", Dec 27).

Case has asked consumers to report their concerns about Goods and Services Tax-related profiteering to the Committee Against Profiteering (CAP). CAP was set up by the Government to combat GST-related profiteering and it has the vested power to investigate such complaints. Case is an institutional member of CAP.

We understand that CAP investigated all complaints against retailers who use GST hikes as the reason to increase prices at the last GST adjustment. It is expected to do likewise in the coming increase.

Case was set up in 1971 when the prices of basic necessities were unstable and there was rampant profiteering. Our mission of protecting consumers' interests remains relevant today.

The writers asked if Case examines and speaks out on price increases, especially those relating to services provided by monopolies. They cited postage, public transport and electricity tariffs. Some of these services are already monitored and subjected to regular reviews by the authorities: Postage costs by the InfoComm Development Authority and public transport fares by the Public Transport Council. Electricity tariffs are determined by a formula that tracks the ups and downs of quarterly prices, depending on changing input costs, which primarily comprises oil.

Case watches all price increases closely. We are not against price adjustments by market forces per se; we believe businesses should be transparent and consumers given more information when prices are adjusted.

We have consistently called for transparency on pricing, such as our task force on transparency in hospital bills in 2004. We will continue to take a firm position on unjustified or non-transparent price increases.

Case has been an affiliate member of Consumers International since early 2004. Case is a non-profit, non-governmental organisation that draws on the strength of more than 200 volunteers who help us champion consumer issues.

Case serves consumers from all sectors of society. Besides handling individual complaints, we also conduct public talks to raise awareness of consumer problems.

Leadership is provided by the Central Committee of 19 elected members, including the president and vice-presidents. Six are institutional members with a union and cooperative background and the rest are individuals and professionals who volunteer their time. We welcome people from all walks of life to contribute their time and expertise to the consumer movement in Singapore.