ONCE bustling with activity and sales, bazaars in Penang and the Klang Valley selling food and clothes for the coming Deepavali celebration have been unusually quiet as more Malaysians tighten their belts because of the rising cost of living.

Traders and small businesses depending on the once-a-year surge in sales during the Deepavali period have said profits have slumped in recent years, with some claiming barely covering their costs.

Raj Ganeson, 33, who sells sweets and snacks from a roadside stall in Penang’s Little India said regular customers are telling them that money is tight and they have less to spend for the festivities.

“Who has money (to spend) these days? Most people make an average RM2,000 a month, and most families spend RM30 daily on food.

“Add in the other expenses like utility bills, phone and internet bills, bank loans, pocket money, school expenses, tuition fees and maybe daycare for their children… how much do people have left?”

Although Raj and his wife can sometimes make RM300 a day in sales, a big portion of it goes to the cost of goods and operations.

“The ingredients we need have become pricier. We also need to spend more on petrol. The price going up and down, doesn’t help. It goes up more often than down,” he said.

Inflation hit 3.7% in August, compared with 3.2% in July, the Statistics Department reported late last month. 

Core inflation increased 2.4% in August 2017 compared with the same month last year. 

Among the major groups that recorded increases were the indices for food and non-alcoholic beverages (+4.3%); transport (+2.1%); housing, water, electricity, gas and other fuels (+2.9%); restaurants and hotels (+2.8%); health (+2.7%); and furnishings, household equipment and routine household maintenance (+2.7%). 

In Brickfields and Klang, traders at Deepavali bazaars are also experiencing slow business.

Dalber Kaur, 65, who has been selling home-made cookies for the last 17 years in the festive bazaar, said last year, her sales barely covered the rental for the stall and the cost of goods.

“I made more cookies this year. I am hoping for a good crowd. Business is slow, but we still have one more week until Deepavali,” she said.

Dalber said while the cost of goods has risen, thanks to the goods and services tax (GST), she decided not to raise the price of her cookies.

“My cost is up but I cannot raise my prices. If I do, the customers will complain and go elsewhere. I have no choice by to make less profit,” she said.

Student M. Nishalini, 20, who helps her mother sell sarees and salwar kameez at the Brickfields bazaar, said the clothes would usually be flying off the racks during this period, but business has been slow this year, despite offering discounts of up to 50%.

“Customers just come by to look at the prices to make comparisons,” she said.

Nishalini and her mother took loans from relatives to buy the clothes from India, and have increased their stock by about 20% this time.

“I hope we can make a profit. But if business is bad, we will sell at cost to at least cover our expenses and rent.”

Another clothes trader, R. Umadevi, said her business at Little India in Penang has been declining this past three years.

“Businesses like mine depend on the Deepavali shopping season. Little India used to be the main place where Indian families shopped for all they needed. But things have changed,” she said.

She has been forced to offer clothes which are priced at the lower end of the spectrum, as many consumers are looking for price above quality.

The clothes at her stall range from RM15 to RM90, with some sarees going for as low as RM30, she said.

“I have to accept that I won’t be making a large profit,” said the businesswoman of 19 years. – October 14, 2017.