KUALA LUMPUR: Businesses are allowed to hold cheap sales just four times a year under new rules by the Domestic Trade, Cooperatives and Consumerism Ministry.
The move, which takes effect on Jan 1, is meant to draw tourists during peak sale seasons, said the ministry’s enforcement director Mohd Roslan Mahayudin.
He said traders would only be allowed to hold sales four times annually of which three would be determined by the Government.
The three sales decided by the Government are the early year sale from March 1 to 30, 1Malaysia mega sale carnival from June 15 to Aug 31 and 1Malaysia year-end sale from Nov 1 to Dec 31.
“Currently, traders are allowed to hold sales five times yearly, with two set by the traders and three by the ministry,” Roslan told reporters after a walkabout at AEON Cheras Selatan Shopping Centre to check on the Christmas festive season price control yesterday.
He said the change to the body’s Trade Descriptions (Cheap Sale Price) Regulations 1997 was done after talks with the Tourism Ministry on standardising cheap sales in the country in order to boost tourism.
“Cities like Dubai and London have fixed cheap sale seasons and we see tourists going in droves to shop there during those times,” said Roslan.
“Currently, traders have to put at least 70% of their overall goods for sale, but it was hard for them to find items to clear off.
“With the new rule, they can put just half of their items on sale,” he said.
Next year, traders will only be allowed to hold sales if their items have a minimum discount of 10%.
“Now, traders are free to set discount of as low as 5%,” he said.
The base price set for items before discount must be based on the lowest price of the goods over a three-month period before the sales, added Roslan.
AEON retail business division general manager (southern region) Mathavan Arjunan said the changes would benefit consumers.
“With the minimum reduction of goods set at 10%, consumers can now enjoy even higher discounts,” he said.