SHAH ALAM, May 25 — The Federation of Malay Hawkers and Small Traders of Malaysia says small businesses are detecting a shift in consumer spending patterns, with expenditure becoming increasingly subdued due to economic pressures linked to tensions in West Asia.
Its president, Datuk Seri Rosli Sulaiman, said rising prices had also contributed to consumers becoming more cautious with their spending.
He said traders were forced to scale down daily operations, including reducing stock supplies by up to 50 per cent, following the change in consumer behaviour.
“Supplies are still available in the market, but we can see that people are now more careful and are not spending as they used to. This situation has directly affected traders as sales movement has slowed and demand has declined.
“The increase in the price of goods has also caused sales among hawkers and small traders to drop, forcing them to adjust their operations, including reducing the quantity of goods sold,” he told Media Selangor.
Rosli said traders were now more inclined to prepare simpler menus such as fried food compared to dishes with gravy, as leftovers could be reused for other meals.
He said traders were also required to procure supplies such as vegetables and fish earlier than usual due to unstable supplier stock.
Rosli said the current situation was similar to the impact of the Covid-19 pandemic, which had severely affected the entire business supply chain and would take a long time to fully recover.
“It may take five years to fully recover. That is why we hope for assistance such as a six-month moratorium so that people can start spending again.
“When people do not spend as usual, the impact is felt across the entire economic chain, from suppliers and wholesalers to retailers and small traders,” he said.
