Prices do not have to go down with salary increase – Nasir

10 November 2007
Report: Ayya

Prominent businessmen Ahmed Nasir of Lily Stores have said that the prices of consumer goods in the market need not be revised to reflect the salary increase of government staff next year. He made the statement to Velidhoo News while discussing the recent decision by the government to raise the government salaries effective next year.
Ahmed Nasir said that even though the government salaries are to be raised next year, the prices of consumer goods do not have to decrease. He said the prices of goods are based on global prices and not on salaries. He further said global prices plus the cost of warehousing has to be taken in to account.

Ahmed Nasir said global prices of consumer goods will increase with increased development of the world and that there is no solution to this dilemma. Nasir notes that rental charges of warehouses and shops have gone up by 50% when compared to charges of 4 or 5 years ago. He noted that increased global oil prices have the prices of goods everywhere. Maldives is country that depends on outside world for their bread and butter said Nasir.

Nasir expressed his concern over the increased congestion in Male’ especially after the tsunami 0f 2004 and noted that it was contributing factor to the increasing rental prices in Male’.

Small and medium business owners who import goods are facing difficulties in warehousing and that this leads to limiting their amount of import said Nasir.

Maldive Ports Authority, MPA have revealed that amount of import of consumer goods has increased tree times during the period of July to August this year, compared to the same period of last year.