KUALA LUMPUR, April 21 — Yellow mee and kuey teow are slated for a price uptick, joining a long list of other essentials facing price pressures due to the still unresolved conflict in Iran.
Tit-for-tat blockades by Iran and the United States at the Strait of Hormuz have prolonged a global energy crisis which is currently driving up logistics, freight and packaging costs worldwide.
In Malaysia, the plastic packaging cost for noodles alone has jumped by nearly 30 per cent since the conflict broke out more than a month ago, said Malaysian Bakery, Biscuit, Confectionery, Mee and Kuey Teow Merchants Association president Chaang Tuck Cheong.
Polyethylene terephthalate (PET) — a key material used in bottles and food packaging — is manufactured from processing crude oil.
Nearly 38 per cent of Malaysia’s crude oil supply is imported through the Strait of Hormuz, but the waterway remains volatile for safe passage of ships.
Insurance premiums for ships sailing through West Asia have also leaped 17-fold, further exacerbating fuel prices, the Finance Ministry said on April 18.
Despite paying more for plastic packages, Chaang said the materials are arriving later than usual due to a surge in demand.
“In the past, we could get the packages within three weeks after making the purchase, but some noodle manufacturers have to wait for at least six weeks now.
“Some suppliers have also shortened our payment period — from two months previously to only one month now — leading to serious cash flow constraints,” he explained.
With diesel expenses alone making up nearly one-third of noodle production costs, Chaang said weeks of aggressive rise in diesel prices have pushed up manufacturing, logistics and freight charges.
Diesel price in the Peninsula more than doubled from RM3.12 per litre on March 11 to a record RM6.72 on April 9 before dipping by 75 sen to RM5.97 per litre last week.
“Some smaller-scale traditional establishments that still use firewood to produce noodles may not raise the prices to maintain their competitive edge.
“But, larger companies relying on diesel to produce noodles have no choice,” Chaang said.
How are traders and hawkers preparing?
Traders like Kamol Cheng Thean will be paying an extra RM2 for every 4.5kg of yellow mee, kuey teow and kuey teow halus (soup noodles) starting this week.
“The supplier has raised the price from RM14 to RM16 for every 4.5kg of kuey teow and kuey teow halus.
“For the yellow mee, it will be going up from RM13.75 to RM15.75 for every 4.5kg,” the 55-year-old trader operating at Pasar Harian Selayang said.
However, the Malaysia Federation of Hawkers and Petty Traders Association president Datuk Seri Rosli Sulaiman said hawkers are reluctant to raise food prices despite the rising input costs chewing off nearly 20 per cent of their profit.
“Hawkers are not increasing the food prices yet because they are afraid of losing their regular customers.
“A plate of mee goreng with vegetables and a fried egg costs between RM7 to RM8. If customers ask to add seafood like squid, then we charge them around RM10,” he said.
Rosli said some suppliers have indicated the possibility of a price hike for mee and kuey teow but might consider doing so after the diesel price stabilises.
He added that most hawkers are able to maintain their food prices because the government has capped the 14kg subsidised LPG cooking gas cylinders — typically used in households and small eateries — at RM26.60.
Malay Mail – Malaysia
