Government takes different approach to create consumer-friendly traders

KUALA LUMPUR, July 6 (Bernama) -- Initially, the authorities would come hard on errant traders who flouted regulations to shortchange consumers. Enforcement officers from the Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) would raid trading premises on receiving complaints about unscrupulous traders. Goods were seized, compound notices were issued and guilty traders were hauled to the courts. Of the guilty's offences, sales of merchandise with no price tags, sales after expiry date, sales of counterfeit products and price over-charging remained rampant. However, the ministry has since found that such approach is not very effective in curbing such offences and it must resort to better ways of educating these traders about their civic responsibilities in the future. In essence, the authorities are now adopting a more relevant and practical way of enforcement. 'INTELLIGENT' ENFORCEMENT Social awareness among traders in developed nations such as the United States, Japan and European Union (EU) countries is relatively high, since they are observant of any breaches of consumer regulations that might hinder their business operations. These traders have ensured that only quality products and services are offered to consumers at fair prices. In Malaysia, the authorities have resorted to an 'intelligent' way of enforcement at selected trade zones (ZPTs) nationwide since early this year. According to KPDNKK's Enforcement director-general Mohd Roslan Mahayuddin, the aim is to create a more conducive business environment while inculcating awareness on the need to adhere to consumerism regulations and ethics. He said the previous practice was to haul the errant traders to courts where they would be slapped with penalties and fines. But the authorities now concur that such practices should only be used as a last resort, after having issued advices and warning notices to these unscrupulous traders. Mohd Roslan said enforcement officers these days act as trade facilitators who give out advice and technical assistance on adherence to domestic trade rules and regulations. "Intelligent enforcement is more relevant and practical to the current trade scenario. It is also more efficient with limited availability of resources," he told Bernama. FOCUS Mohd Roslan said that the ministry's focus is on the compliance of trade regulations as well as ethics and services of traders in this aspect. He said this enforcement approach is being practiced at the selected trade zones and better compliance to these three elements would result in fewer complaints against errant traders. "The impact of this smart enforcement can be seen when the selected trade zones draw more customers to their business premises," Mohd Roslan said. With this method of enforcement, enforcement officers will educate the traders to be more ethical and to provide their best service to consumers. Mohd Roslan said the long-term effect of compliance to trading regulations will help boost Malaysia's economic growth and enable the country to become more competitive compared to other nations in the region. WHY ZPTs? But why is the enforcement made only at the ZPTs? According to Mohd Roslan, the ZPTs are chosen as they are the frontline trade zones that feature leading and prominent business premises which draw immense tourists and investors' attention. The ZPTs were picked based on three prerequisites: high compliance to regulations, existence of well managed shopping complexes and credentials accorded by the local office of the KPDNNK. These features facilitate the 'smart' way of enforcement apart from boosting Malaysia's image as a trade centre to foreign investors and tourists alike. There are 48 ZPTs and more than 7,000 traders nationwide. Among these are the City Square in Johor Baharu, BP Mall (Batu Pahat), Public Market (Alor Gajah), Terminal One Shopping Centre (Seremban), Alam Sentral Complex (Shah Alam), Kuala Lumpur City Centre (KLCC), Alor Star Mall (ALor Star), Public Market (Tapah), Mesra Mall (Kemasik, Kemaman) and Centre Point Complex (Kota Kinabalu). Mohd Roslan cited KLCC as the best example where intelligent enforcement meets compliance close to 80 per cent of the standards. THREE PHASES The smart enforcement is made up of three phases. The first phase lasts over three months and orders data and statuses of the ZPTs such as the number of business premises and types of trade being conducted. A discussion will be held between the KPDNKK and the management of the shopping complex to explain this method of enforcement. In the second phase which takes place in the subsequent three months, the KPDNKK and the complex's monitoring committee will observe the effectiveness of the 'self-enforcement' carried out during the first phase. "A meeting will be held with the complex's management on the status and star rating of the business premises based upon their compliance to regulations as well as their follow-up actions," Mohd Roslan said. Visits to the premises along with the management of the shopping complex and officers involved will soon be organised. Under the third phase, an audit will be carried out by the compliance team on the premises and warning notices will be issued in response to any non-compliance incidents. "The second and third warning notices will follow if the premises are still found to be non-compliant. Errant traders will be given warning notices to explain the legal action to be taken from the date of the third warning issuance," he said. If this approach is not bearing the desired result, Mohd Roslan said, then the enforcement officers would be forced to seize the merchandise found to have breached the regulations and the rental contract of the premises would be terminated. -- BERNAMA