Visitors say prices of food and beverages in Ipoh are now comparable to Kuala Lumpur and Penang. — Photos: RONNIE CHIN/The Star
ONCE a haven for delicious and inexpensive foods, Ipoh seems to be losing this lustre. Even locals are claiming food in Perak’s capital is too expensive.
This sentiment is shared by visitors to the former tin-mining town who say food and beverage prices here are comparable to Kuala Lumpur and Penang.
Those who spoke to StarMetro felt food prices in Ipoh had increased significantly over the past few years.
S. Palaniandy, 66, owner of budget hotels from Kuala Lumpur, said plain thosai used to be about RM1 or RM2, but now cost RM4.
Palaniandy: The food industry in Ipoh could be affected if prices continue to rise.
“Ghee thosai, which used to be about RM3, is now close to RM5,” he said.
Ipoh used to be known for its variety of food and low prices but now, prices are similar to Kuala Lumpur, he said.
Palaniandy said the food industry in Ipoh could be affected if prices continue to rise and if quality and portion sizes were not maintained.
“Ipoh is a place for me to relax, so I do hope that eateries can try to maintain its image as a place for affordable food.
“This will also definitely attract more people to Ipoh,” he said.
Although food prices are higher in Penang, they are value for money with larger portions, he added.
Civil servant Rosnaini Rahim, 43, from Kuantan, Pahang, echoed Palaniandy’s view.
Rosnaini: There should be standardised pricing to regulate food prices.
“In places like Penang, nasi kandar is worth the price, but here, I don’t feel the same value.
“Last year, a plate of nasi kandar cost RM7 to RM8, but now it’s close to RM10.
“Even nasi lemak, which used to be about RM1.50, now costs RM2 to RM3. It costs much more to dine out now,” said Rosnaini.
She added there should be standardised pricing to regulate food prices.
Salesman Mohd Farid Mohd Kamil, 31, from Kuala Kangsar, said eateries should be fair to their customers.
“While it is understandable that food prices increase because the ingredients have become costlier, businesses must still be fair to consumers.
“The prices of food in Kedah, Perlis and Kelantan are much cheaper compared to Ipoh,” he said.
Ipoh-born K. Mathiveeran, 72, had also seen prices of food increasing significantly over the last few years.
He acknowledged this could be due to more expensive ingredients.
“For instance, those who sell vegetables at the market have to pay more to their supplier, so they have to increase their prices as well.
“There are also some hawkers who increase their prices because of poor business,” he said.
Student Mohd Ismail Syafiq Khalel Ahmed, 23, said the high food prices was making it difficult for people to dine out.
“Roti canai prices have also gone up.
“I hope that it will not go up any higher. People should not be burdened by this,” he said, adding that he seldom eat out these days to save money.
Rising cost of doing business
Lean Nga Mei, 34, who helps at her brother’s coffeeshop, said the price of coffee powder had gone up twice.
“We spend over RM200 a week just on coffee powder.
Lean says the price of coffee powder has gone up twice.
“Even condensed milk and chocolate malt drink prices have gone up.
“If we don’t raise prices, we can’t cover our operating costs.
“We only increased our prices by 20sen last month and people complained that it was too pricey,” she added.
K. Vani, 57, who has been selling mixed rice at a coffeeshop in Gunung Rapat for the past 11 years, said she could not increase her prices too much.
“I used to sell a plate of rice with chicken, fish and vegetables for RM5.
“With the increased prices of so many things, I am selling it now for RM8.
For years, Ipoh has been known for its affordable, good food. The increase in food prices is due to multiple factors.
“I cannot raise my prices too much because customers will go elsewhere, so I have to set a reasonable price,” she added.
Noodle seller Loh Kin Fatt, 50, said while prices had increased, he continued to serve a decent portion.
“Our prices are standard and we ensure a good portion size, unlike other places.
“In some places, a small bowl of Hokkien mee is priced at RM7, while a large bowl is about RM10 or more,” he added.
Having run his business for 14 years, Loh said food prices tended to increase by 10sen annually.
“As prices of ingredients increase, we will also be forced to raise our prices.
“If the ingredients can be sold at a lower price, we can also sell our food to customers at a cheaper price,” he added.
Perak Coffee Shop Association vice-secretary Alex Wong said several factors affected the price of food in the past two years.
These, he said, included insufficient supplies of meat and vegetables, removal of certain subsidies and an increase in taxes on certain items.
“Some of the ingredient prices have already increased by at least 40% to 120%,” he added.
Wong said some food operators had to make adjustments so that they could cover overhead costs.
“Maybe some portions of food are smaller compared to other places.
“I believe that most operators will try to maintain their current selling price and adopt a wait-and-see approach (on whether to increase their prices).
“However, with the implementation of the new minimum wages, impending electricity tariff increase, e-invoicing and more subsidy removal, I believe it will affect the cost of operations for all food operators,” he added.
Some eatery operators say they have to raise their prices as the cost of ingredients has gone up.
Consumer concerns
Ipoh City Watch president Richard Ng said the issue was a cause for concern.
“Ipoh used to be well-known for its cheap and good food.
“This can be traced back to the early 20th century when tin attracted a hive of activity with migrants from China’s Guangzhou, especially the Cantonese and Hakka, who brought along with them great culinary skills.
“When the tin-mining industry collapsed in the 1970s and 1980s, Ipoh became a dead city, especially at night and the economy was badly affected.
“Many Cantonese folk continued with their business activities, operating coffeeshops and restaurants at affordable prices,” he said.
In contrast today, he said prices had skyrocketed to a point that Ipoh was no longer the same destination for affordable food.
“The prices are even more expensive than at some places in Kuala Lumpur such as Kepong or even in Johor’s Skudai,” he noted.
Ng said there were several interrelated factors contributing to the price hikes.
“Many businesses blame it on the increase in transport and other logistical costs, especially post-Covid-19.
“Many operators in Ipoh have adjusted their prices to offset these increased costs,” he said.
“Climate change and unpredictable weather conditions also cause imbalances in the supply chain leading to increased prices.
“Increase in rental is another factor especially as many property owners took the opportunity to raise their rent after Ipoh was named one of the best destinations in Asia,” he added.
Other factors, Ng said, were the increase in business licence fee and assessment rates by Ipoh City Council, Sales and Services Tax (SST) rising from 6% to 8% and the implementation of the new minimum wage.
“All these costs will be transferred to consumers.
“For consumers, especially those with fixed incomes, higher prices may lead to financial strain,” he added.
Ng said the influx of tourists to Ipoh had resulted in an increase in prices of food and beverages.
“Locals now choose to eat at shops located away from the city centre.
“Even Chinese customers are patronising mamak eateries more frequently now because of their relatively cheaper prices compared to Chinese coffeeshops.
“Today, Ipoh is no longer the food haven like it used to be in the 1980s. You can get cheaper food in places like Taiping, Kepong and Skudai,” he added.
The increase in food prices is also affected by inflation.
Stabilising prices
Ng said to help stabilise food prices while ensuring business sustainability, a combination of government policies, industry collaboration and consumer engagement was required.
He said food industry players should not think of making a quick buck for business sustainability.
“Instead, profit should be viewed as a by-product and providing affordable good food to build reputation should be their priority.
“The government must step in by providing temporary price ceilings on essential items like rice, sugar and cooking oil during shortages,” he said.
He added that the government should also look into reducing tax burdens on food producers and suppliers.
“SST and business licence rates should be reviewed.
“Enforcement officers must step up efforts to check on unreasonable price increases,” Ng suggested.
He said businesses should look into lowering operating costs by digitalising their business, improving supply chain and reducing logistics cost.
“Lowering operational costs helps businesses remain sustainable without hiking prices.
“Ingredients should be sourced locally instead of relying on imported goods.
“Consumers should also be educated to only spend when necessary and support eateries that provide affordable prices,” he added.
Ng said coffeeshops could display cost breakdowns to help customers understand why prices had increased.
“They should also justify price increases by maintaining the ingredients used and quality of products.
“The government should also encourage more competition to ensure fair pricing,” he said.
Domestic Trade and Cost of Living Ministry and the city council enforcement officers, Ng said, could act against unscrupulous businesses rather than leave it to market forces to determine prices.
“Consumer associations can help to monitor prices and report overpriced places to the relevant authorities.
“A list of eateries that offer fair pricing can also help consumers choose shops that provide better value for money.
“Each year, it has been a practice by some businesses to raise their prices during Chinese New Year and these same operators also conveniently forget to lower it after the festive period.
“Action should be taken against these businesses,” he added.
