Malaysian authorities investigate KFC and McDonald's price hike

The Malaysian ministry of Domestic Trade and Consumer Affairs (KPDNHEP) is investigating popular fast-food restaurant chains Kentucky Fried Chicken (KFC) and McDonald's over their price increase in food items. According to media reports on The Edge and NST officers from the ministry have already begun checks and are seeking explanations from the brands. The ministry is also said to be investigating based on public complaints.

The issue first came into limelight when a social media user shared images of a price increase at a KFC, which spurred more netizen conversation on the matter.

Meanwhile, this led to KFC issuing a statement, which it later claimed to be a misrepresentation. In its initial statement on Malaysiakini, it said that starting from December 2018, its listed prices are inclusive of 6% SST. As such there was said to be “some marginal adjustments to the prices”.

But the next day,  KFC said that the statement had been misinterpreted with respect to the SST. “The marginal price adjustment has no relation to the SST, as previously the rate of 6% goods and services tax (GST) was similarly charged to our customers,” it said. Read the full statements here on Malaysiakini.

The second statement was released as the initial one prompted Datuk Seri Najib Razak to accuse the ruling Pakatan Harapan (PH) of prioritising businesses instead of consumers.