BUSINESS groups in the Johor capital are calling for Federal and state governments to help local traders maintain low prices for the food they sell.
The organisations say there is a need to find a balance between ensuring local traders are not discouraged from operating their businesses, and providing the public with access to affordable food.
Johor Baru Business and Hawker Association president Roland Lim said he believed more traders, especially those running stalls at hawker centres and food courts, would close down in the next few years if nothing was done to address this problem.
“Apart from the rising cost of ingredients, which has been significant over the past few years, traders in Johor Baru now have to pay higher rental following a recent increase in assessment tax.
Lim says traders are affected by rising costs of ingredients and rental, as well as the increased minimum wage level.
“On top of that, the minimum wage has also been increased, further raising the cost of operations and making it more difficult to maintain low prices,” said Lim.
If traders increased prices too much, he said, they could lose customers who had sought them out for their affordable food.
One way traders could retain customers was by ensuring they offered quality food and a suitable dining environment, Lim suggested.
“One reason people prefer to go to restaurants is because there is not much price difference with food at hawker centres,” he said, acknowled-ging that air-conditioning at restaurants offered a more comfortable environment too.
“As such, I think food courts and hawker centres need to work towards improving their environment, especially in terms of cleanliness and food quality,” he said.
Johor Indian Petty Traders and Small Business Association chairman D. Ravindran said the authorities, especially state Domestic Trade and Consumer Affairs Ministry, should hold regular meetings with traders associations to better understand the sentiment on the ground.
Ravindran: Vital for authorities to meet traders associations to understand the sentiment on the ground.
“I think it is important for them to know the issues faced by traders and to have a clearer idea whether a price increase is reasonable.
“This is also vital to ensure prices are fair to both customers and traders,” he said.
Ravindran said the government could also introduce special subsidies for key ingredients used by the hawkers.
Johor Consumers Movement Association chairman Md Salleh Sadijo said another factor contributing to the increase in meal costs was Johor Baru’s proximity to Singapore.
Md Salleh says one factor contributing to higher food prices is Johor Baru’s proximity to Singapore.
“We must also remember that apart from Singaporean diners, many Malaysians working in the island republic can afford meals at a higher price range.
“As such, there will still be demand for food and beverage businesses despite price increases,” he said.
Many businesses, he said, were struggling to keep prices low due to the rising cost of living, including rental.
“While some businesses may take advantage of the situation to raise food prices excessively, I believe they are the minority.
“I believe the only way to address this is for the government to intervene and introduce initiatives that benefit both sides,” said Md Salleh.
He added that the “Menu Rahmah” initiative by the government truly benefitted the public. — By VENESA DEVI
