GEORGE TOWN – The abolition of subsidies for chicken, egg, and cooking oil will force restaurant owners to raise food prices to keep their businesses “alive”, operators of eateries have warned.
Simple Cafe operator Mazura Mahmud, 45, said the business has already had to increase food prices by 50 sen last month when the chicken shortage hit the country.
“If possible, we do not want to increase food prices because it will be a burden to the customers.
“We don’t want to lose customers, but at the same time, we need to recover from the losses we faced during the Covid-19 pandemic,” she said when met by The Vibes today.
Mazura, who is also a chef, said the restaurant, which has been operating for ten years, needs at least 10kg of oil, and 12 chickens a day.
She said it could still sell food at a reasonable price. However, it is not clear if the subsidy issue and the rise in costs will be resolved in the future.
“There are also restaurant owners who are indebted to wholesalers, so the only option we have is to raise food prices to cover the costs incurred.
“In my opinion, this year is a very challenging one for us,” she said, adding that her restaurant’s food prices may increase by up to 10% in July.
Plight compounded by labour shortage
Meanwhile, Nasi Kandar Hidayah Restaurant trader Mohamed Naser Ibrahim, 51, said the restaurant had to increase the price of each food and beverage item by 20 to 30 sen.
“Previously, we sold roti canai at RM1.20, but it had to be increased to RM1.50 a piece.
“Apart from roti canai, we are also facing an increase in the price of raw materials such as chicken, fish, vegetables, and eggs,” he said.
Naser said that at the moment, the manpower shortage also forced restaurant owners to make difficult decisions as some operators had to reduce their operating times.
The ceiling price for chicken and chicken eggs as well as bottled cooking oil subsidies for volumes of 1kg, 2kg, 3kg and 5kg will not be continued from July 1 onwards, Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi announced yesterday.
The subsidy for bottled cooking oil which was initiated in August 2021 as a temporary measure during the Covid-19 (pandemic) was extended originally from the initial three-month period.
However, Prime Minister Datuk Seri Ismail Sabri Yaakob asserted today that it is being misused and there has been smuggling by various parties, including industries, prompting the government’s move to cancel the subsidy.
The subsidy for packeted cooking oil, which has been in place since June 2007, is being maintained.
However, the government will no longer impose a ceiling price on chicken and chicken eggs from July 1 onwards.
Hard to increase prices for B40 customers
Meanwhile, Kamariah Mahat, 49, who sells nasi kukus ayam berempah meals, said she will be adopting the approach of waiting until July 1 before deciding on any price change.
She said the increase in chicken prices that occurred a few months ago had also affected the prices of food she sold.
“Even now, I have increased the price of food by 50 sen since last May. How can I raise the price again?
“Most of my customers are people from the low-income B40 group. So I can’t bring myself to hike food prices again,” she said.
Kamariah, who has been doing business at the Bayan Baru public food court for the past five years, said she still hopes that any price changes involving chicken, eggs, and cooking oil in July will not burden consumers. – The Vibes, June 22, 2022
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