Ever since the government announced restricted movement under the Movement Control Order (MCO), Malaysians have entered a state of fear and fright. This constant state of anxiety has led a group of Malaysians to panic buy. The word “Panic Buying” has made headlines almost every day across the nation and this highlights the seriousness of the situation.
Harian Metro reported that panic buying not only affects the community, but it also takes a toll on the country’s economy. According to Professor Madya (Associate Professor) Dr Mohd Yusof Saari from the Faculty of Economy and Management Universiti Putra Malaysia (UPM), large quantity purchases made by a big group of people can lead to market manipulation.
“The value of items in the market, most likely, would increase when the current supply is not enough to fulfill the demands fueled by panic buying,” said Professor Madya Dr Mohd Yusof Saari.
He also stated that the panic buying would affect those who have been given unpaid leave during the MCO. This is because the household income has been cut short and instead of panic buying, those affected should manage their expenses wisely.
According to the expert, similar circumstances had taken place in the 1997 Economy Crisis when investors hastily pulled back their investments and lost faith in the market because of panic. This had ultimately led to a financial crisis in Indonesia and North Korea.
Panic buying also empties the shelves in supermarkets and grocery stores. Buying things more than you need causes the people who really need it, such as senior citizens, to go elsewhere for their necessities. Panic buying further heightens the demand for items in the market. As we all know, the simple logic of economy is higher demand leads to increased cost.
We hope everyone stays safe and avoid panic buying. What do you think of this article? Share your thoughts down below.
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