Bakers struggling to manage costs
WITH locals spending less due to higher cost of living, small businesses in Johor Baru are hoping to sell their goods to those coming across the causeway.

Baking supplies proprietor Zaveen Lee pointed out the increase in prices of ingredients after the Covid-19 pandemic had impacted businesses like hers, as locals are cutting back on spending.

“Most of the main ingredients for baking are imported and there was a shortage after the pandemic,” she said when met at her outlet in Taman Perling, Johor Baru.

Zaveen pointed out that 70% of her customers were Singaporeans and 30% were locals, including Malaysians working in Singapore.

She said the weaker ringgit in recent months had also contributed to costly imported baking ingredients as their prices were quoted in US dollars.

She noted that their prices had already increased by between 5% and 10% even before the weakening of the ringgit in recent months.

“The implementation of the 8% service tax, up from 6%, on March 1 this year has also pushed up the prices of baking ingredients,’’ said Zaveen.

Mahanoum Bahulu proprietor Mahnum Abdul Rahman said she decided against increasing prices but had reduced the number of bahulu in each container sold.

She used to sell 50 bahulu in a container for RM12. Now it comes in a container of 40 for the same price.

“Customers are price-sensitive regardless of whether they are Malaysians or Singaporeans,’’ said Mahnum, who operates a shop at the Larkin Sentral integrated terminal in Johor Baru.

She also said the prices of some baking ingredients had been going up every month.

For instance, she said, the price of hazelnut spread in a 3kg container was RM105 in January 2024,. It went up to RM124 in February, RM139 in March and RM155 in April.

Mahnum said the price of food colouring in a 1kg bottle had rocketed from RM12.90 early this year to RM16.90 now.

“Luckily, prices of flour, eggs and sugar have stabilised since late last year, or else I would have no choice but to increase my prices,’’ she said.
Baking ingredients,Weaker ringgit,Sales tax,US dollar,Prices
WITH locals spending less due to higher cost of living, small businesses in Johor Baru are hoping to sell their goods to those coming across the causeway.