'I HAVE STOPPED ORDERING FRUIT JUICE': Price hikes - the worst is yet to come!

SIBU - The price of drinks here has increased by between 20 and 50 sen after the government removed the sugar subsidy recently.

Some foods that are not related to the sugar subsidy also cost more now.

But Sibu Coffee Shop and Restaurant Owners Association chairman Tong Ing Kok cautioned that an uglier nightmare might arise in less than two months’ time.

This is because the workers’ minimum wage policy will be fully implemented by the government in January 2014, and this would translate to higher cost in doing business as it would drive up rental, commodity, water and electricity charges, fuel and transportation costs, among others.

Speaking to The Borneo Post yesterday, Tong advised his members to brace themselves as the ‘next blow’ was expected to be harder.

Concerned for consumers, he appealed to coffee shop owners to try to make ends meet without heaping more burdens on consumers.

“Try to make ends meet. This will definitely be a harder blow. Despite that, I suggest we should not make another drink price adjustment. We have just done that.”

Prices of drinks shoot up

Tong, however, said his association had no say on drink prices. They used to have a say, but the government policy now forbids them to do so to ensure that a free market competition prevails.

This means individual coffee shop owners decide for themselves now how much they want to charge for their drinks.

Tong opined that although sugar now cost 40 sen more per kg, it would be reasonable for drink prices in coffee shops to increase by 10 sen only, “but, again, I must stress our association has no more say on this matter now”.

He said any hike in drink prices should be at a quantum acceptable to customers, or else the coffee shop owners would lose out in the end.

“While we work out to stay afloat in the business, we must also consider the interest of our customers.”

On whether there should be a price hike in unsweetened drinks like Chinese tea, Tong felt the price should remain untouched.

Meanwhile, when interviewed, several members of the public who frequent coffee shops said they felt the pinch over the drink-price hike.

A salesman, who declined to be named, said the price for fruit juice in one coffee shop he frequent was increased by 50 sen per glass. It now cost RM3.50.

“I have stopped ordering fruit juice,” he said.

One office clerk, who only identified herself as Ting, said drinks in coffee shop should not be increased by 20 sen or more.

Non-sugar foods also affected by sugar price rise

What angered her more was that food not affected by the scrapping of the sugar subsidy also cost more now.

“In some coffee shops, Kampua noodles (dry noodles) now cost RM3 per plate, an increase of 50 sen. Foochow fried noodles now cost RM4 per plate in some coffee shops, meaning 50 sen more,” she wailed.

Ting said the food vendors justified their dearer food by claiming price hike in fuel, transportation charges and others.

In the night market, she pointed out, a 1.5-litre bottle of fresh soy bean milk now costs RM3. It used to be RM2.50.

Borneo Post