A bread manufacturer in Klang has been slapped with a hefty RM60,000 fine for hiking up the price of their popular potato bread.
The case, which was heard at the Sessions Court, saw the company changing its plea to guilty after being charged with profiteering.
Represented by its director, Khu Kim Chai, 67, the company admitted to raising the price of its potato bread from RM3.35 to RM3.51—an increase of just RM0.16.
But that small increment wasn’t just a few extra sen.
The hike pushed their net profit margin from RM1.89 to RM2.05, which triggered the enforcement of Malaysia’s anti-profiteering laws.
Hike took place in May 2024
According to Kosmo!, the offence took place at the company’s premises in Taman Klang Utama on 27 May 2024.
The charge was made under Section 14(1) of the Price Control and Anti-Profiteering Act 2011, which is read together with regulations designed to detect unreasonable profit margins.
If convicted under this law, the company could have faced a maximum fine of RM500,000 but was ultimately ordered to pay RM60,000 instead, which they settled immediately after the court proceedings.
The prosecution was led by Muhamad Saiful Saaidin from the Ministry of Domestic Trade and Cost of Living (KPDN), who pointed out that the price hike was not justifiable given the profit margin increase.
The company was defended by lawyer Mohd Ridzuan Omar.
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