KUALA LUMPUR, Feb 20 ― The Lunar New Year is usually a bustling time at popular malls in the Klang Valley, with no shortage of locals and tourists looking to get a holiday bargain.
The situation this year, however, was decidedly different from traders at the iconic Sungei Wang Plaza as businesses struggled to lure shoppers.
An almost unnatural quiet enveloped the mall on the morning of the first day of the Chinese new year, with some activity only building up in the early afternoon ― a far cry from the time when one had to shove their way into a shop from among the sea of people.
A hair accessories seller, who gave her name as Kak Nur, said business has been bad since the start of the year and doesn’t dare predict what will happen in the coming months, especially with the onset of the goods and services tax (GST) on April 1.
The unpredictability was unsettling, she said.
“With GST, people kurang (seldom) shopping, tourists especially shop at Chow Kit as they can see the price differences. It's cheaper there,” she said, referring to Petaling Street, another popular tourist spot.
“In the past, I can confirm when many customers would come or not. Now business cannot confirm,” added the 51-year-old, who has been operating her shop for the past six years.
Malaysia faces a potentially bleak economic outlook this year, with earnings pared down by the sharp dip in crude oil prices since the middle of last year.
Even cheaper pump prices have failed to lift the pensive mood of consumers, with economists reportedly expecting Malaysians to be more conservative amid expectations of higher cost of goods and services once GST kicks in.
Kak Nur thinks the consumption tax only benefits big businesses, while small traders like herself ― who are typically at the tail end of the tax chain ― will have a hard time coping with the expected hike in living costs on top of the monthly rent for her shop.
Another trader, Abdullah Al-Amin from Bangladesh, said the slowdown started way back in January last year and has persisted despite a slight pickup in November.
“Early last year, business okay but now business is really bad. You look here, there are no people,” he said, pointing at the walkway in front of his souvenir shop.
There were few people passing passing by and no one stopped to buy from Abdullah's shop which started business two years ago.
The situation was not helped by the fact that suppliers periodically increased the price of their goods, which Abdullah said left him little choice but to do the same.
“Add six per cent (of GST), the prices very high and customers cannot buy. This is a problem,” the 32-year-old said.
Meanwhile, shoppers at Sungei Wang Plaza were apprehensive of spending amid the slowing economy and the looming GST rollout later this year.
Even with seasonal promotions on vivid display to poach customers ― from discounts to “buy one free one” offers ― business moved at a snail’s pace.
A man who only wanted to be known as Low said it’s not a good time to spend lavishly.
“Economy no good, slow a bit. Spending power also not much,” said the 61-year-old from Sabah.
“No need to go out, stay at home.”
Another shopper from Sarawak, 54-year-old Winnie Lai, however expressed slight optimism as that means she could spend more time in Malaysia as opposed to travelling overseas.
“If go country such as China, people there probably take holidays and not shop. Better to shop at home (Malaysia),” the Mandarin teacher said.
