A new goods tax and a weakening currency have sparked an austerity drive among Malaysian consumers, slowing sales of imported fruit this year, suppliers report.
The introduction of a 6 per cent Goods & Services Tax (GST) on 15 April and the depreciation of the ringgit have triggered cautious spending among shoppers, says Koay Swee Aik, director of leading produce importer Chop Tong Guan.
“Consumers have taken a self-austerity drive,” he says.
“The ringgit become the worst Asia performing currency, plummeting from 3.15 in 2014 to 4.48 in September 2015,” he says. “Currently it is wallowing in 4.20. The drop is more than 35 per cent in value, whereas our neighboring countries currencies, apart from Indonesia, have only depreciated by around 10 per cent against the US dollar.
“This has impacted our consumer spending power as Malaysia is nearly a net food importer. Consumers’ grocery basket has shrunk with the same amount of spending.”
