TRADERS hoping to cash in on the Chinese New Year buying spree are careful not to stock up too much as inflation bites and consumers tighten their purse strings.

Kuala Lumpur Fruits Wholesalers’ Association president Chin Nyuk Moy summed up the situation when he said: “If we buy too much, we will end up losing money if consumers cut their spending”.

Less than a month away, the Chinese New Year will be the first without Covid-19 restrictions.

Chin told The Malaysian Insight that wholesalers have cut down the import of Mandarin oranges, a festival staple.

He said inflation had pushed the price of the oranges up by 5%.

“We’re watching the situation closely. We have to see what the demand is like.

“If there is demand, we’ll import more otherwise we will be saddled with unsold stock. These oranges are not only perishable, they are hard to keep fresh.”

She said the price of the oranges depends on the variety and their size. Even though freight charges have gone down this year, Chin said the price of the fruit had gone up due to lower output.

The yong chun variety is among those that have seen a fall in production but Chin said its price remains unchanged from last year.

The price of the Taiwan ponkan variety, on the other hand, has risen 5% and now sells for RM70 a box.

Chin said on the whole, the price of oranges “will be a bit higher” this year.

She predicted traders will only know the consumers’ spending habits 10 days before the new year.

She said people will start buying the oranges to give as gifts and for personal consumption from the middle of this month.

Yong Sheng, a 71-year-old store specialising in hampers and delicacies, has yet to see sales pick up.

Its operations manager Ng Choo Lum, however, was upbeat.

He expected shoppings to be “enthusiastic” this year than last.

“Most people usually wait until the last minute to buy. So we have to just wait.”

What is cause of concern for Ng is the effect of inflation on people’s spending behaviour.

“Will people have less money to spend or will they will become more thrifty?”

Like everything else, the price of its popular New Year cakes has gone up to RM39.90 per box

To increase sales, Ng said the store is offering “promotional packages”.

“We understand the pressures of inflation so promotions are our way of giving back to customers.”

Oloiya executive director Raymond Khue said prices will remain unchanged at his store.

The store last adjusted its prices in December and Khue said there will be no adjustments for the Lunar New Year.

The store specialises in pork and chicken jerky, which are sold at RM120 per kg.

Khue said even though competition is stiff, the company will not have promotions.

The reason? The high price of pork.

Despite this, he said sales so far have been “overwhelming”. – January 5, 2023.