Belanjawan 2024: Due to the Price Increase, How do Applications Play Their Role?

Development— posted on October 4, 2023 11:17 AM

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    In the current economic landscape, one undeniable truth prevails: prices are on an unrelenting upward trajectory. Whether it's the essentials or little luxuries, the cost of living seems to surge without pause. This calls for a closer look at how user-level technology and applications can step in to address this pressing issue. Given the impracticality of physical price comparisons, let's explore ways to streamline this process for more informed decision-making.


    On September 27, 2023, our founder, Encik Reza Razali, shared insights on Niaga Awani: Belanjawan 2024, shedding light on how the application aims to alleviate the burden of escalating living costs due to price increases.


    How Technology Streamlines Price Comparison

    Applications have revolutionised everyday tasks, making them more efficient and convenient. But how exactly can they assist consumers in comparing prices?


    Encik Reza Razali explains, "We're currently only able to track prices when you, the consumer, make a purchase. We don't have visibility into what happens in the supply chain before that. It doesn't make sense for local stores to hike up prices if they're also feeling the pinch. Nowadays, shoppers are really careful about prices, which means higher prices can lead to fewer sales. The key lies in identifying high-impact technology and pinpointing exactly where in the supply chain we can step in to bring down prices for you, the end consumer, when you make your purchase."


    Empowering Consumers with Price Comparison Apps

    In the realm of price comparison applications, adoption rates remain relatively low, signalling an opportunity for improvement in user awareness. How can applications be enhanced to offer the potential to bolster users' knowledge of price comparisons?


    Encik Reza Razali adds, "Consumers care a lot about prices. If you want to buy things cheaply, you know where to find affordable stores. But if you're looking for high-quality, you go to fancier places. When we check prices in different stores, we notice that basic items like sugar, rice, and coffee have almost the same prices everywhere. However, fresh products like vegetables might have more price differences. Stores often use certain products to attract customers even if they don't make much money from them. So, it's not a good idea to raise prices on these items because it could scare away customers who are paying close attention. When we compare prices between stores, essential products usually cost about the same. But in general, prices tend to go up when you're actually buying something. The prices we see have already gone up because of things that happened in the last few months, not suddenly."


    Addressing Challenges for Consumers

    The application itself poses challenges, particularly in the realm of price comparison. What are some additional hurdles that can be addressed to alleviate the burden of user-level difficulties for individuals like us?


    Encik Reza Razali emphasises, "We need stronger policies to address supply chain issues causing price increases. Retailers often raise prices due to rising costs, and there are broader macroeconomic factors at play. Government policies can help mitigate supply stocks and shortages. As consumers, there's little we can do, even with apps, as our purchase data lags behind. A potential solution is a data warehouse to monitor prices across the supply chain, aligning with the basic principle of economics – when demand exceeds supply, prices rise."


    In this dynamic landscape, the role of technology and thoughtful policy measures emerge as critical tools in empowering consumers and ensuring economic stability. Through strategic implementation and a collective effort, we can navigate these challenges and work towards a more balanced economic future.


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