A special panel has been set up to ensure that smartphone dealers do not engage in profiteering following the government ‘s plan to provide a RM200 rebate for smartphone purchases by eligible youths, said Information, Communications and Culture Minister, Rais Yatim.

He said the panel, made up of telecommunication companies (telcos) and the Malaysian Communications and Multimedia Commission (MCMC), will act against dealers found to be taking advantage of the rebate provision for profiteering.

"The Information, Communications and Culture Ministry will complement the panel by monitoring the price movements of smartphones," he told reporters after a friendly badminton match between the D'SURY and Malaysian National News Agency (Bernama) teams at the badminton hall of the old Istana Negara in Kuala Lumpur yesterday.

On Wednesday, the cabinet agreed not to set a price limit on 3G smartphones purchased by youths between the ages of 21 and 30 earning less than RM3,000 with the RM200 government rebate.

The rebate is being implemented under the Youth Communication Package following Prime Minister Najib Abdul Razak's announcement on the provision when tabling Budget 2013 in September of last year.

Rais said the lifting of the previous RM500 price cap on the smartphones that could be purchased under the facility was done in the hope that more youths would register for the rebate, which was opened on Jan 1 and ends on Jan 31.

"So far, more than 10,000 youths have registered for the rebate and my ministry hopes there will be an exponential rise (in the registration), based on their (youths) ability (to buy) and needs," he said.

When asked why the eligible youths had to register online to get the rebate, Rais said: "What is wrong with the registration? This is one way for the authorities to collate the data and inform the telecommunications industry on how many people would like to buy it and meet the market's demand. It is not something we did to make things complicated."

Rais said if the youths (eligible for the rebate) wanted to voice their views or make enquiries, they could contact MCMC at its hotline at 1800-88-4040 or by accessing the commission's website.

- Bernama