DEADLY BEVERAGES FLOODING MALAYSIA'S MARKET

Issue:
Health Ministry pharmaceutical division deputy director Mazlan Ismail, cautioned the public not to fall for the promises of sellers who sell concoctions at the open market as consumption has adverse effects.
Eventhough consumers read the labels on the products, it is confusing to understand the ingredients.
E.g. : Adultarated bevergaes like "kopi kuat" are mixed with sexual stimulants.

Theory:
The lack of information regarding these health risks is called imperfect knowledge/information. The exploitation of manufacturers towards the ignorance of consumers causing health risk is called moral hazard. This causes market failure because the allocation of goods and services by a free market is not efficient and leads to a net social welfare loss.

Law:
These products are flooding the market due to legal loophole.
These beverages are under the purview of Food Safety and Quality Division. This division is not obliged to test food before it enters the market.
Hence, manufacturers takes advantage of the loophole and not caring that their products causes health risk to consumers.