The parliament passed the Price Control and Anti-Profiteering Law in 2011 granting the federal government greater power to manage consumer prices in Malaysia. This law was expected to expire on 31st December 2016. However, the government renewed the Price Control and Anti-Profiteering Act in 2017 without a sunset clause.
This paper explores the effectiveness of the Price Control Act through difference-in- differences method applied to Malaysia’s consumer price index as well as the potential effects of the anti-profiteering regulations. The research is based on meetings with government officials as well as on statistics from the Companies Commission, Department of Statistics and the Ministry of Domestic Trade, Cooperative and Consumerism.