BUSINESSES in the iconic Petaling Street, a tourist attraction in the heart of Kuala Lumpur, can no longer sustain their operations after three lockdowns to curb the spread of Covid-19.

There are more than 1,000 stores along Petaling Street and around 20% have closed down for good two months ago. Most of them were in the food business, operating from shoplots and from roadside stalls.

The once bustling street is now deserted.

There are fears more businesses would be forced to close with uncertainties remaining as to how long the pandemic would be around.

Ang Say Tee, chairman of the Kuala Lumpur Hawkers and Petty Traders’ association, said the stores, restaurants, hotels and souvenir shops there relied on tourists for business.

“Businesses and hawkers are suffering. Some have indicated that they no longer want to continue doing their business and if the lockdown is extended, there will be more closures in Petaling Street,” Ang told The Malaysian Insight.

He added if more businesses continue to go bust, it will affect Malaysia’s economy and there will be a wave of unemployment.

Ang said businesses and hawkers were willing to follow Putrajaya’s standard operating procedure but it was evident that the government’s measures have failed as the number of cases continued to soar and businesses can’t operate like normal.

He said rent in Petaling Street cost between RM10,000 and RM20,000 a month.

While some landlords were willing to reduce the rent after the pandemic broke out last year, others could not as they were facing their own difficulties.

“Our income is dropping this year and it has been a challenge to pay rent and our employees. I hope the government will announce a stimulus package to help small businesses.”

He hoped the businesses would hold on as he expected better days to come soon.

“I believe tourist attractions all over the world are facing the same problem but I have confidence in Petaling Street. Even if I fail, the association and the vendors will prevail.”

Iconic businesses suffering

The impact of the pandemic and the high cost of rent have made it difficult for long-standing businesses in the area to survive.

Fong Wong Global Sdn Bhd, a Chinese confectionery, was founded in 1909 and has been operating out of Petaling Street for 112 years. The shop is now preparing to move to Jalan Sultan, down the road from its current location.

Its owner Melvin Chan Yuee Soon said the original plan was to open a new branch but due to the pandemic, they could no longer afford the rent at the old spot and had to relocate.

Chan said rent was more than RM10,000 a month and it went up every three years and they could no longer cope.

Other than rental, Chan said he was also responsible for the employees who have worked for him for many years. He has now pivoted to takeaway services to make ends meet.

“I make biscuits in the morning and deliver them to the customers in the afternoon. I do it all myself to reduce cost. I hope I can overcome this difficult time,” he said.

The business was passed down to Chan from his grandfather. He said he had considered giving up altogether but decided against it so that the brand will live on. He has taken a bank loan to relocate to the shop’s new location.

Chan said he grew up in the Petaling Street store with his grandfather and he is reluctant to leave it but he does not have a choice.

Similarly, Kim Lian Kee Hokkien Mee has operated two stores in Petaling Street for 94 years. It is well known for its Hokkien-styled charcoal fried noodles.

Its fourth generation successor Henry Lee said since the pandemic, he has suffered 80% to 90% losses.

“There were signs of recovery at the beginning of the year but after the movement-control order started in May, business started to decline.

“Petaling Street is reliant on foreign and local tourists who have all but disappeared and the number of people working here has also dropped drastically.

“Now, we can only rely on food delivery platforms and social media such as Facebook to promote our businesses,” he said.

Lee said due to the high cost of running a restaurant, he has hesitated to open but if he closed his shops, it would affect the livelihood of his employees.

“Many businesses have ceased operations. It’s sad to see one closing after another because everyone has been working hard here for a long time.”

‘No one comes here’

Bukit Bintang lawmaker Fong Kui Lun said Petaling Street has been hit hard as it can’t even rely on locals visiting the area due to interstate and inter-district travel restrictions.

“There is a famous chicken rice restaurant on Jalan Sultan. Even if business is bad, you still have to fork out RM15,000 for rent. How can they survive?”

Fong said in order to survive, businesses will have to change their business model.

When The Malaysian Insight visited Petaling Street, many shoplots had “to rent” signs at the storefront, and roadside stalls were ready to close for the day by 2pm.

Wendy Wong, a popiah stall owner, said since the lockdown, she could barely make RM10 a day. She sells each popiah for RM6.

She said she used to stay open until 10pm. Under the lockdown, businesses are only allowed to open until 8pm but Wong said she closes at 3pm daily.

“There is no one here at all. It’s just sitting and waiting.”

She said customers only come to buy breakfast in the morning or during the weekends while the number of people who visit the area on weekdays is pitiful.

A migrant worker at a hotel in Petaling Street added that even if the hotel was allowed to open, there were no guests and they were just waiting for the end of the day to get off work.

Kuala Lumpur is currently under Phase One of the National Recovery Plan where only essential businesses are allowed to operate.

The government would consider moving to Phase Two if the average daily cases of Covid-19 drop to below 4,000, 10% of the population has received two doses of the vaccine and the public health system was no longer at a critical stage.

In the second phase, economic activities would be opened up in stages by allowing up to 80% employee capacity on the premises. However, social activities and interstate travel will still be prohibited. – July 14, 2021.