A STEEP increase in the price of eggs, butter and flour has caused some Hari Raya kuih makers in Terengganu to stop doing business altogether.

Meanwhile, those who have decided to soldier on have to decide whether to raise prices or reduce the size of the portions.

Nor Zaidah Sabri, 47, said she is not taking orders this year because of inflation.

“Everything costs more – butter, flour, eggs, the containers for the kuih – it’s not worth the effort because I run a small business,” she said, adding that small business owners like her do not cannot buy in the bulk needed to benefit from economies of scale.

“If I raise my prices too high, I worry that no one will buy,” she said.

Entrepreneurs like Nor Zaidah face the prospect of a continuous increase in the cost of ingredients as Bank Negara Malaysia (BNM) expects inflation to remain high this year.

Large supermarkets such as Mydin have acknowledged that the prices of ingredients have risen by between 10% and 15% since 2020.

Nor Zaidah said she would have to raise prices by at least RM5 for each jar of kuih if she wants to make a profit.

“The price of 4.8kg butter has reached RM79 and I heard the price will keep rising. Eggs are in short supply,” she said.

Another entrepreneur, Umi Khalsoom Razlan said she has two options: to hike up her prices or cut down the portions.

Umi, 50, who has been making Raya kuih for 10 years, said the prices of ingredients have nearly doubled and are expected to rise again as Ramadan nears.

“It is the same thing every year. Before the fasting month, suppliers will increase the price of ingredients. For example, a brick of butter used to cost around RM8; it has now increased to RM13.50,” she said.

“Our biscuits are handmade and we use premium ingredients. Regular customers will understand that we are raising the prices because of the quality of the biscuits we offer.

“Yet at the same time we want everyone to be able to taste our biscuits so the price has to be affordable.

“The only way to maintain the prices is to reduce the quantity.”

Tengku Lijah Tengku Chik, a pastry seller in Kuala Terengganu, said she will not be raising her prices because not all ingredients cost more now, adding she is not looking at making a large profit.

“I do not do this so much for profit as for satisfaction. I started the business as a hobby and only began doing this seriously two years ago,” she said.

“In Terengganu, no one will buy my cakes if the prices are too high.” – February 21, 2023.