Center for Market Education CEO Carmelo Ferlito said a central production and distribution plan makes no sense both from a historical and economic standpoint.

He said that throughout history, the involvement of governments in the provision of essentials has resulted in shortages and the rise of illegal markets, bringing suffering to consumers.

Ferlito said the government would not be able to rely on pre-existing information from experts to determine the quantity of essentials required to be produced and its price.

“Quantity and price are information that emerge spontaneously thanks to the interaction between supply and demand in the market.

“If you eliminate the market, you eliminate the supply, demand and price structure. You will not get any quantity and price right, and will only be guessing and navigating in the dark,” he told FMT.

Last Thursday, Akmal had urged the government to take complete control of the supply of essential items.

He said essential products such as rice, flour, cooking oil and sugar should be controlled and managed by the government instead of the private sector.

Kuala Lumpur Bumiputera Traders and Hawkers Association vice-president Muhamad Baba Kutty said Akmal’s suggestion was not practical and would also burden civil servants.

He said the government should instead allow more businesses to be involved in selling essentials.

Muhamad also said the need to regulate the price of essential goods would only serve to overburden the department handling such matters, which is already understaffed.

In addition,  the government would have to create a new department to handle shipment and distribution.

“This is not easy (and) I don’t think it’s necessary,” he said.