Penang curry noodle maker may keep retail prices

BUKIT MERTAJAM: It will be another three to four months before noodle prices see any hike owing to the end of the government flour subsidy.

Sky Thomas Food Industries marketing manager Thomas Tang said the company, which makes Penang white curry instant noodles under the brand MyKuali, might be prepared to absorb the cost.

He said the company would not raise recommended retail prices yet because its flour supply contract at a fixed price would continue for the rest of the year.

But once the contract expired, he feared prices would go up.

“It will take three to four months before we can determine how the subsidy removal would affect us.”

Depending on the future flour contract, Tang said his company might absorb the increased cost to maintain its customer base.

“Since last year, the prices of raw ingredients like onions, chilli and oil have increased tremendously, some up to 40 percent.

“But if we can still keep a small margin, we are willing to absorb the added cost to stay competitive,” said Tang, adding that the company produces about RM15mil worth of products annually and exports about 60 percent of them to the Asean market.