HIGHER COSTS, UNCERTAIN DEMAND
The Small and Medium Enterprise (SME) Association of Malaysia’s president Ding Hong Sing said the prices of goods are higher following the implementation of a new minimum wage of RM1500 (US$346) per month, coupled with the weak performance of the Ringgit.
He said that the new minimum wage order, which began to apply to companies from as early as May last year, translates into an additional RM1.85 billion in costs for the association’s members every month.
“People will still celebrate the new year, but they will probably spend less compared to before. When the economy was better, people just spent money. Nowadays, people tend to ask about the price of things first before purchasing them,” he said.
Kuala Lumpur Fruits Wholesalers’ Association president Chin Nyuk Moy echoed the same sentiments.
She said that most wholesalers have reduced their import of oranges from China this year as they did not want to run the risk of overstocking.
She said that the wholesale cost of a box of 24 class one mandarin oranges is RM28 this year. This is around 10 per cent more as compared to last year. Most of the oranges are exported from places such as Xiamen and Yong Chun in China.
“This is a perishable product and cannot be kept for a long time. If we are unable to sell all of them, we will have to get rid of them and lose money,” Ms Chin said, adding that people tended to only shop for oranges at the last minute.
GOODIES ARE COSTING MORE
At the same time, consumers will need to fork out more for the goodies this year.
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