JOHOR BARU: Sundry shop operators nationwide are bracing for an even tougher time in the fourth quarter of the year, as the global supply of essential goods is expected to be affected by the season change in food producing countries.
Federation of Sundry Goods Merchants Associations of Malaysia president Hong Chee Meng said the drop in the production of prime ingredients such as wheat, corn and soy as these countries enter the winter months would further affect the overall supply chain.
“This may lead to stock limitations and further adjustments in the price of goods as household food items like bread, biscuits and noodles are all made from those ingredients.
“The price of flour has increased three times since January and the industry is expecting another round of increment in September or October,” he said in an interview.
Hong, who is also the Segamat Sundry Goods Merchants Association chairman, said another issue faced by sundry shop owners is cash flow as they currently have to fork out more to stock up their shelves.
He said while some in the industry had expressed worry about competing against chain sundry stores that have been popping up everywhere, sundry shops are still relevant to current times.
“Some of these shops have been operating at the same location for one or two decades and have a strong customer base. The sentiment is there.
“As long as they serve their customers well, they do not need to worry about losing their customers to the chain stores,” he added.
There are more than 40,000 independent sundry shops nationwide.
Asked whether customers have been complaining about the price increase of various goods, he said the people were already “numb” to the situation.
The continuous price increase is no longer a shock to them in view of the Covid-19 pandemic, logistic issues and the Russia-Ukraine conflict, he added.
“However, the federation thinks the government should come up with more effective solutions and long-term plans to curb inflation and ease the heavy burden faced by the rakyat.”
He said that he had offered some solutions during a meeting with the Prime Minister recently.
“The federation is ready to assist the government to discuss and address the current situation because as industry players, we are familiar with the prices and supply of goods in the market,” Hong added.
