Malaysia

Fireworks fiesta fizzles out for sellers with plummeting sales

Tedious permit procedures still a problem despite being legalised

Updated 3 years ago · Published on 22 Apr 2023 10:00AM

Fireworks fiesta fizzles out for sellers with plummeting sales
Fireworks sellers have blamed their plummeting sales on overflowing supplier entries into the market adding that without set floor prices, sellers are forced to offer lower prices to stay competitive. – AZIM RAHMAN/The Vibes pic, April 22, 2023

by Adam Ayzzat

KUALA LUMPUR – In light of the upcoming Hari Raya Aidilfitri celebration, many would assume that those in the fireworks and firecrackers business made big bucks from their sales after the legalisation of the items.

However, several industry players opine the notion is apparently far from the truth. 

A fireworks seller from Bangsar, Meor Iba, said despite fireworks being legalised in the country, obtaining permits from authoritative bodies was still a tedious and costly process.

“Although firecrackers are now legal, we need to get permits from the manufacturing factory, and then the Kuala Lumpur City Council, and police – in that order,” he told The Vibes.

“The process took a long time, about three months. I am unsure whether it is intentional, or they are actually slow,” he added.

Regarding the delayed permits, Iba speculated one of the reasons behind it was the disagreement from Bangsar residents with the sale of fireworks close to their residential area.

“Bangsar is quite an affluent area, and the city council cannot easily grant permits if the community is against it,”  he said, sharing that his business was only a week old in the area.

The legalisation also led to overflowing supplier entries into the market. Without a set floor price, sellers have been marking their prices lower and lower to stay competitive, Iba added.

As such, he lamented that their current goal is to sell enough products to reach solvency and pay off variable costs, as compared to last year, when he could earn profits three times his capital.

Nonetheless, Iba and his colleagues explained that their business is mostly a way to spend time and earn side income during Ramadan, as their main occupations under the gig economy are slow during this period.

Asked about a recent incident where a man set off fireworks on the Middle Ring Road 2 opposite Petronas Lotus Ampang, Iba said he and his colleagues always adhere to safety precautions.

“When customers ask us to demonstrate how our products work, we usually just show them a video, or verbally explain to them,” he said.

“About that incident, it was really a matter of safety awareness. You can easily get involved in accidents by riding a motorcycle, let alone dealing with dangerous explosives,” 

He added that they only sell fireworks and firecrackers that have been authorised by the government and do not sell illegal models that are often smuggled from Thailand.

Similarly, another industry player who wished to remain anonymous said his sales have gone “haruk” (stinky), due to the increase in supply but unchanging demand.

“We worked hard to get the permits, but there are still people who sell without the necessary documents.

“There seem to be stalls selling firecrackers everywhere now. My business has plummeted because there’s too much supply,” he briefly said.

In February, Local Government Development Minister Nga Kor Ming announced that the government had agreed to legalise fireworks and firecrackers by Hari Raya Aidilfitri, to curb the smuggling of the items.

The move led to criticism from various groups and individuals, including journalist Paul Tan and the Malaysia Consumers’ Movement, who questioned the motive behind it.

As the Aidilfitri holiday nears, the Women, Family and Community Development Ministry reminded parents to always monitor and supervise their children when playing with firecrackers or fireworks. – The Vibes, April 22, 2023

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