SUBANG JAYA: The Domestic Trade and Cost of Living Ministry (KPDN) will summon the Johor Indian Muslim Entrepreneurs Association tomorrow to seek clarification on its proposal to raise food prices by five percent starting next year.

Minister Datuk Armizan Mohd Ali said KPDN had issued a notice to the association under Section 21 of the Price Control and Anti-Profiteering Act 2011, requiring an explanation for the proposed price increase.

"Since this association has only just made the announcement for next year, we are taking proactive steps to prevent anyone from taking advantage of the situation.

"This notice is to summon the association to provide an explanation for their announcement regarding the price increase," he told reporters after the signing of a Memorandum of Understanding (MoU) on price data sharing between KPDN, Mydin, and Redtick here today.

According to media reports, about 300 mamak restaurant operators in Johor expressed concerns about rising operating costs, with the implementation of the minimum wage next year expected to further increase expenses.

As a result, Indian Muslim restaurant operators are expected to raise food prices by at least five per cent at their premises from next year.

Elaborating, Armizan cited an example from OPS Kesan 2.0, where the ministry had taken action against those attempting to take advantage of the implementation of targeted diesel subsidies and the sales and service tax (SST) hike.

"Some parties announced a price increase, but after being summoned and asked to explain, it was found that their reasons were unfounded.

"For instance, the construction sector claimed that the price increase was due to the implementation of the targeted diesel subsidies, even though it is not eligible to use subsidised diesel," he said.

Armizan said, therefore, that KPDN had issued a notice and taken action under OPS Kesan 2.0 to ensure that price increases were only made based on relevant, actual costs