The economics of ikan kembung


Sharon Tan

Half a kilo of ikan kembung, some vegetables and ulam, coconut milk, cendol and brown sugar came up to RM60 after a morning of marketing at the PJ Old Town wet market. – The Malaysian Insight pic by Hasnoor Hussain, September 2, 2017.

ONCE known as the “poor man’s fish”, the possibility that ikan kembung might become a price-controlled item is perhaps a better economic indicator for ordinary Malaysians instead of growth figures issued by the government.

The price of the humble fish in the mackerel family has been rising since the introduction of the goods and services tax (GST) in 2015.

Another factor has been fluctuating petrol prices. Prior to the GST, kembung or Indian mackerel, fetched around RM8 per kilo at the market.

In the past year, the price of kembung, the fish that sets the benchmark for other types of fish, has fluctuated between RM16 and RM22 per kilo throughout the country, causing consumers to adjust their diets besides buying less.

“These days, instead of buying a kilo of fish, we buy half a kilo. Between the two of us, it is will last us three days,” said retiree Zainal Abidin Ayob, who was having breakfast with his wife, Siti Zahara Ismail, after a morning of marketing at the PJ Old Town wet market earlier this week.

A peek into their plastic bags revealed a kilo of kembung, some vegetables and ulam (herbs). There was also a packet of coconut milk, cendol and brown sugar. Their bill came up to RM60.

“Our children are coming back for the qurban holiday (Hari Raya Aidiladha yesterday), so we are making cendol for dessert. A bowl cost about RM2 these days. It is cheaper to make it at home,” said Siti Zahara.

Omar Shafiee of Desa Mentari says his household of 10 is eating more chicken these days compared to fish. – The Malaysian Insight pic by Hasnoor Hussain, September 2, 2017.

The consumer price index (CPI) in June 2015 after the GST was introduced was 2.5%, a slight increase compared with the same period the year before. The CPI in July this year rose 3.2% compared with the same period in 2016, with the food and non-alcoholic beverages sub-group recording an increase of 4.2%.

Noting that the hike in prices not just for fish but for seafood overall, Siti Zahara who is anaemic said she often buys cockles when the dizziness gets the best of her but has also cut down on that of late.

“The doctor advised me to eat cockles or liver (as an iron supplement) because of my anaemic condition.

Before GST, cockles cost about RM4 per kilo. Now it’s about RM10. So, I buy half a kilo. You can imagine how little that is when cooked.”

Chicken, as an alternative source of protein, is not a favourite of the elderly couple but Zainal admitted that it was becoming a more economical option as one bird could be chopped up and made into several dishes for a few days.

This is what Omar Shafiee of Desa Mentari does for his household of 10. He said they are eating more chicken these days compared to fish.

“I buy two chickens each time, as there are so many of us. We can do two kinds of dishes. If I buy fish for all of us, I would need to buy 2kg. 

“Fresh kembung is around RM16. The frozen ones are cheaper at around RM11 or RM12 but not as good. 

“There are also sardines sold at RM5 per plate but it is not of good quality,” he said.

Omar said the family have also stopped buying beef as it is too expensive for them. A kilo of beef is at around RM22.

“We are looking forward to the qurban on Hari Raya Haji to get some beef.”

The price of kembung, the fish that sets the benchmark for other types of fish, has fluctuated between RM16 and RM22 per kilo throughout the country, causing consumers to adjust their diets besides buying less. – The Malaysian Insight pic by Hasnoor Hussain, September 2, 2017.

Earlier this month, the Domestic Trade, Cooperatives and Consumer Ministry said it might place Indian mackerel on the list of price-controlled items, provided the supply remained consistent and stable throughout the year.

Of the basic food items on the government’s list of some 20 controlled goods, chicken is the only protein. Fish and chicken are widely consumed meats in Malaysia compared to beef and mutton which are largely imported and more expensive.

Fishmonger Kenly Chin blamed the higher price of a once-cheap fish like kembung on the GST and the weak ringgit.

People used to buy whole fish like tenggiri but now they buy in pieces or half a fish. Prices have gone up gradually after GST.

“Our weak ringgit does not help as we also buy fish from Thailand and Indonesia,” said Chin.

Consumers are likely buying less and stretching their ringgit, as the expected increase in the sale of chicken has not seen a drastic rise in tandem with the higher price of fish.

Clara Oosaynathan says everything has gone up in prices and she is now buying less and more carefully. – The Malaysian Insight pic by Hasnoor Hussain, September 2, 2017.

A chicken seller at the PJ Old Town Market, who gave her name as Siau, said demand for chicken has not been very much higher despite fish becoming more expensive. Her family have been poultry sellers for more than 50 years.

But consumers are telling her that they find they can create more dishes with chicken to stretch their ringgit. 

“One kilo of chicken is RM8, and an average chicken is about 2kg. If you have a small family, you can divide that into at least two meals. Everything is expensive now,” said Siau.

The 6% GST does not apply to fresh and frozen fish and meats as they are considered basic food items and are zero-rated. 

Despite this, traders like Chin and Siau said the zero-rating has had little effect in keeping prices low because the GST applies to transportation charges, while petrol prices have generally been on the rise in the past year.

“All these are taken into account. That is why the fish are more expensive by the time they get to me,” said Chin.

Other consumers, who still love their fish like retiree Clara Oosaynathan, will buy less but opt for better quality fish, such as senangin, kerapu and jenahak, which are cheaper compared with pomfret and cod.

“Everything has gone up in prices. I buy less and am more careful with the things I buy,” she said, adding that she would compare prices in the market before making a purchase. – September 2, 2017.

One kilo of chicken is RM8 and an average chicken is about 2kg. A small family can enjoy at least two meals out of one bird, says a stall owner. – The Malaysian Insight pic by Hasnoor Hussain, September 2, 2017.


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Comments


  • While lamenting, it is also good for them to reflect how they voted. Was their vote done on the basis of what is best for them or to keep the bangsa, agama and negara in power and the receipt of BRIM as main consideration.

    Posted 6 years ago by Norman Fernandez · Reply

  • Now, I recall being told that prices will come down after the introduction of the GST....

    I wonder when that is going to happen....

    I am sure those who voted for UMNO in GE13 are kicking themselves now.

    Posted 6 years ago by Musa Ng · Reply