The country may be seeing rosy gross domestic product growth but consumers don’t seem to have enough money to spend on groceries, said Ameer Ali Mydin, managing director of popular hypermarket chain Mydin.
In an interview with radio station BFM today, Ameer said this could be noticed as hypermarket sales have been seeing a continued contraction.
“I am not saying there’s no growth, of course the numbers are there. But in a normal country, what you see is that growth is (fuelled by) domestic consumption.
“For domestic consumption, they are basic goods. But hypermarkets and supermarkets (in Malaysia) which control 50 percent of the grocery market are (seeing) negative (growth).
“I think people just don’t have the money,” he said.
Ameer said that in the first quarter last year, the GDP grew by 5.6 percent but retail sales shrunk by 1.2 percent and hypermarket sales contracted by 4.8 percent.
“That makes you wonder, how can a country grow but hypermarkets growth, which is the real basic consumption in the country, is negative.
“In the third quarter last year, Malaysia’s retail industry contracted 1.1 percent. Hypermarket business dropped by five percent.
“For the fourth quarter, the numbers are not out but I can tell you retail sales will not be more than three percent and hypermarkets’ numbers are going to be negative three to four percent,” he said.
Ameer said based on Mydin’s data, the prices of good have gone up by 14 to 15 percent in the last five years.
“When you look at individual items, it’s scary. Cabbage, Cameron cabbage, it has gone up in total, my goodness, 29 percent in the last five years.
“Ikan kembung hitam, 19.5 percent. Maggi brand chilli sauce, and they claim they never increase their prices, 38.8 percent. Ayam brand sardine, they have gone up by 30.6 percent.
“And you can say six percent may be because of the goods and services tax,” he told BFM.
KR1M 2.0 is bound to fail, just like KR1M. I would tend to agree. Why? Basic economics. Is there any ownership for KR1M or KR1M 2.0? Nil. It is just some government fund dumped into some kedai runcit activity without any responsibility or ownership.
Even Mydin could not sustain it.
Who will look into the business and work out all the problems and issues? I think no one. Who bothers? After all, it is just public money and there is no need to be accountable for it, right? So, is it a surprise that such ventures will fail? Why should the government dabble in something that the private businesses are doing so efficiently? You don’t think the major supermarkets or the small kedai runcit are scrutinising every expenditure and expenses of the retail business? Again, I think the government is just putting on a publicity show. So, no matter how many KR1M can be launched and relaunched, I would think failure is inevitable as gvernment should not be involved in running private businesses. Just look at 1MBD. Rakyat thought they get good deal, but many taxpayers have to bail out the loss making business.
KR1M 2.0 and Felda 2.0… new packaging, but same old $H*T… UMNO-government trying to fool the rakyat.
High cost of living does not mean higher standard of living. that’s two different things entirely. Whatever we paid for 6% gone into GST and at least 30% gone into corruption. So, that’s why the value of RM1 is getting less and less in its worth. I have yet to calculate the weaker foreign exchange against major currencies. A lot of foods and articles are either wholly or partially bought with foreign currencies. With the worthless depreciation, we have to pay more and more against the foreign currencies.
If PH is registered by ROS than they will use a common symbol which will become a grave threat to BN/UMNO BARU hold on power.So ,no way PH will be registered,ROS may soon cookup some reasons to prevent the registration.
They will register it closer to Pru14, afraid that they’d be shouted at being unfair etc at Pru14 campaigning.
They just delay the registration, not realizing that each day of delay brings more resentment against Umno/Bn.
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