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Sunday, September 20, 2015

Stop demonising hawkers for high prices, blame GST instead

RM60 for a bowl of Sarawak Laksa?
You are joking, aren’t you? What’s in it? 1gm of cocaine? Edible gold flakes? Or more likely, meat from some endangered animal?
Anyway, I disagree with you that hawker stalls should be forced to regulate their prices.
These people make a pittance from their wares because market forces determine the prices they can charge.
Let those stalls that want to set higher prices continue to do so – it will give a chance to the ones who sell the exact same product for a lower price.
You have already pointed out that there are stalls metres apart whose prices range from RM2 to RM12.
Is the stall selling the RM12 noodles fully packed with customers and booming along?
Are there no customers at the RM2 stall?
Just because something cost RM1.35 to make does not mean that it should be sold at, say, RM1.50 or RM2.00.
Are you saying that the skill of the person making that bowl of noodles counts for very little? Are you saying that the convenience of being able to walk up and order a bowl of noodles count for very little? Are you saying that to be able to eat a bowl of noodles, making a mess on the table and just walking away to let somebody else clean up, count for very little?
Shall we just reconcile ourselves that it is that hawker’s lot in life to eke a living out of selling noodles at RM2.00?
I could go on and on but I will not.
In life, I have learned a little bit about how to value the contribution and efforts of other people, especially those who do things which please me.
I am still not very good at figuring out how to reward that contribution and effort but hopefully as I grow older, I will.
Khoo Chuan Hin: I agree with the writer, it’s very similar in Penang. Hawker food like economy rice, few months ago a plate of rice with three dishes – a piece of fish, vegetable and an egg – would cost RM5 but now it costs RM7.50. It’s ridiculous, and I support the call for the authorities to do something to prevent more increase of prices, or the government should abolish GST and to lower the prices.
Tc Ling: I am talking about general pricing as a whole, not about the issue of shops committing GST frauds.
There are certain things that can be regulated and there are certain things that can’t. Cooked foods for example, are nigh impossible to be regulated. Why? You have these variants: portion sizes, venue, materials and ingredients and the wages of the cook and so on and so forth.
Realistically speaking, our government does not have the manpower to work out the appropriate formula to set the price, let alone enforcing it. It is simply not practical to do so.
In this case, I think it is best to let the market decide on the pricing. Too expensive, the stall or shop in question might lose its customers, too low and it may not earn enough to cover its expenses.
As far as shops committing GST frauds is concerned, go get them already. It is past due for the authority to take actions against errant operators and business owners.
Albert Lye: Hawkers stall are not the cause of the GST. Stop demonising them as they are facing difficult times too but it’s the government that is the root cause of all these problems that consumers are burdened with!

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