HAWKERS are absorbing losses caused by reduced business and expensive raw material, as they simply cannot afford to keep losing customers, which would lead to closing down their businesses for good.

These business owners told The Malaysian Insight the rise in prices of goods and raw materials due to the Covid-19 pandemic have pushed up their operating costs.

They said they were already suffering losses following disruptions to their business due to the pandemic and the movement-control orders.

However, despite their overheads going up, the hawkers have decided not to increase their prices out of fear of losing more customers.

They told The Malaysian Insight they have instead decided to absorb the extra costs from raw materials and try to reduce expenditure where they can.

Mohd Baba Kutty, vice-president of the Bumiputera Petty Traders Association, said business has been bad since the start of the pandemic.

He also questioned the rise in the price of goods and asked if it was being manipulated by “cartels”.

“Business is not good. Why is the price of goods going up? Are ‘cartels’ manipulating prices?

“They said the hike in the price of fuel has pushed up the prices of other goods. But what is their excuse now?” he asked.

Baba said hawkers and petty traders have made no profit in more than a year and are making just enough to get by as their business has been greatly impacted by no dine-ins and restricted operating hours.

Under the current standard operating procedure, the National Security Council has decided to allow hawkers and restaurants to operate to provide takeaways and deliveries between 8am and 8pm.

“We know that the price of seafood has gone up but the hawkers will absorb the cost. Unless an item has gone up so much that they can’t afford to absorb the cost, they will increase the price of food by 20 sen.

“They are worried that customers will not come if they raise their prices, especially now when more and more people are cooking at home and rarely coming out to take away food,” he said.

When asked if the rise in the price of 5kg bottled cooking oil will affect hawkers and petty traders, Baba said they could only accept it.

However, he was worried that in order to save costs, many hawkers and petty traders may choose to reuse the cooking oil.

“Before, after frying the food, the oil will be discarded. Now, in order to save costs, they will reuse the oil, which is not healthy.”

Baba said he was also unhappy with government assistance as none are in place to assist hawkers.

“Who are the experts consulted by the government (to help hawkers and petty traders)? They don’t understand our business model and the measures set up are embarrassing.”

Lim Way Way, a noodle stall owner, said the prices of goods have trended upwards since last year.

She said the price of noodles has gone up since February and March this year. A pack of noodles used to cost RM6.50 but from June 1, it costs RM8 per pack.

“The price of 1kg of plastic takeaway bags has also gone up. Last year, the price went up three times, from RM7.80 per kg early last year to RM8.20 in August and RM8.50 early this year,” she said.

Lim said the price of oil has also increased steadily but since she does not use a lot of oil in her business, there was not much impact.

“Supermarkets are limiting packs of 1kg cooking oil to two packs per person. Are many people rushing to buy them?” she asked.

Although the prices of goods continue to go up, Lim said she doesn’t want to adjust her price for fear of scaring away customers.

Pandemic forces change in business model

Penang Petty Traders Association president Ooi Thean Huat said with hawkers absorbing the extra costs of raw materials, it has become harder for them to maintain their business as they are refraining from hiking up their prices.

Ooi said hawkers have had to change their business model since the pandemic.

He said customers want to feel satisfied with their meals, but they also have to understand why the hawkers have reduced the portion of food they are selling.

“A bowl of noodles used to have three pieces of chicken, now there are only two pieces. Noodles don’t cost much, so hawkers will give a larger serving of noodles. As long as the customers are full, they won’t be angry,” he said.

He said when Cameron Highlands was put under an enhanced MCO, the price of vegetables soared, leaving hawkers in distress.

However, supply resumed several days later when the government allowed farms in EMCO areas to operate, to the relief of hawkers.

“We feel the most helpless with the increase in the price of cooking oil. Because of this pandemic, all the industries are suffering.

“Crowds at the markets have decreased and hawkers have lost up to 40% of their customers.

“We now have to compete with people who have set up home businesses selling food after losing their jobs.

“We understand it is a difficult situation for everyone. As long as these people return to work once their company reopens, our business will improve,” Ooi said.

During the lockdown, he said most hawkers were only making RM20 to RM30 in profits daily. Prior to this, they could make up to RM50 a day, giving them RM500 in profit for 10 days.

Ooi hopes the government will pay more attention to hawkers and give them the necessary aid.

Lim Suai Chai, the president of Kuala Lumpur Mobile Hawker Association said with the lockdown, takeaway business have been reduced to fried rice and noodles instead of fish and meat dishes as more people opt to cook at home.

“Do you get steamed fish for takeaway?” he asked.

“Prices of goods have gone up but noodle stalls won’t increase their prices. Maybe economy rice sellers will increase the price of dishes that are more expensive, but customers may stay away from those and opt for cheaper meals.

“People’s food intake has also decreased from staying at home all the time with fewer activities to do.

“It’s natural for three meals to become two meals. How can the hawker business improve?” – June 24, 2021.