Zero percent GST, what the restaurant operators say

After the removal of the goods and services tax (GST), restaurant operators are still finding it difficult to reduce their prices.

Most claim that their hands are tied because the middlemen are unwilling to lower the prices of the raw ingredients.

For example, Adnan Abdat of Simply Ribs said that based on their experience, “prices from the markets have not gone down; therefore, we are unable to reduce the prices on our menu.”

Another operator, Angie Lim of Big Big Bowl, said that small business entrepreneurs like her are “squeezed” from both sides.

“While the customers expect prices to go down, we are finding that prices of the greens have gone up,” she said. “For us, since our business is small, we never charged GST; therefore, our prices have not gone down.”

For those who pack their food, Lim said they will save some cost by using their own food containers. “It is also a lot better for the environment when our customers use their own containers so that we do not have to charge them 30 sen for each container,” she said. “The Malaysian mindset has to change. Why use disposable food packaging materials when you can use proper food containers?”

Among those featured in Voiz.Asia (Malaysiakini’s Food Section) who were surveyed, Michael Loh of Restoran Aunty Lee in Malacca has been most promising. Apart from the zero percent GST, the restaurant operator, who has a branch in Desa Park City in Kuala Lumpur, agreed to lower the prices of their signature dishes.

For a medium set of pie tee, for example, the price has been reduced from RM40 to RM37. On some other items, such as their large serving of Cili Garam Fish, Lemak Nenas Prawns and Lemak Nenas Fish, the price has been revised from RM138.60 to RM130.

“If prices of raw ingredients go down, we will also lower our prices further,” promised Loh. Restoran Aunty Lee has some of the best Southern Baba Nyonya dishes.

Meanwhile, Joo Tiang’s Penang Curry Mee stall at Lim’s Sisters in Sri Bintang is still selling their Penang Curry Mee at RM4 a bowl. Business was so good that its proprietor, Vincent Ng is now looking to expand elsewhere.

“It is not difficult to survive even with the prices that we have been charging for many years,” Ng said. “We have many regular customers.”

Ng is hoping to set up food trucks that can give his Penang Curry Mee a wider reach to people in the Klang Valley.

Kelantanese Mamaktok’s nasi kukus ayam berempah at Restoran Ilham in Damansara Mutiara is still famous for its big packet and delicious chicken at RM6.50.

According to a customer, who spoke on condition of anonymity, the new government would have to step up its checks on the prices of basic food ingredients in both the wholesale and retail markets.

“Unless this is done vigilantly, prices that have gone up during the BN government rule will be hard to come down, since people are now used to the new prices,” he said.

Taking a swipe at former deputy minister Ahmad Mazlan, he added: “This is the result of the GST. Prices of goods will never come down after the GST was introduced. Besides the GST, there are also other inflationary pressures caused by the removal of fuel subsidies.”

Grateful for the removal of the GST, the owner of Restoran Yi Yan, Fan Kin Lin, said business has started to pick up again after the government removed the GST. “All the while, we have been absorbing the GST,” she said.

For the well-deserved break from political news, visit Malaysiakini’s Voiz.asia/food to look for all the gastronomical delights.

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STEPHEN NG is a citizen with an avid interest in following the country’s political developments since 2008. -Mkini

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