Experts divided over floor price for parcels in courier industry

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There is a minimum price for sending documents but no such price for parcels at present.PETALING JAYA: Experts are divided as to whether a floor price for parcels will make the courier business more sustainable.While a group representing 25 courier companies and a federation of trade unions believe it may be the way forward in light of shrinking profit margins, two economists argue such a move will only hurt consumers’ pockets.On Jan 1, 2015, industry regulators Malaysian Communications and Multimedia Commission (MCMC) implemented a minimum price policy of RM5 for each letter weighing less than 500gm for courier companies. It said the move would curb unhealthy competition among industry players.However, there is no such minimum price for parcels.Competition in the courier business has never been tougher thanks to the e-commerce boom, and the ensuing price war has seen companie…