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Straits Times
4 days ago
- Business
- Straits Times
Malaysia moves to clean up its street food scene with shiny new kiosks topped with solar panels
While the project has generally been given the thumbs up by the public, criticisms include low traffic and poor earnings at some locations. PHOTO: MINISTRY OF HOUSING AND LOCAL GOVERNMENT MALAYSIA/FACEBOOK Malaysia moves to clean up its street food scene with shiny new kiosks topped with solar panels KUALA LUMPUR - Mr Syed Nurul Fakhri was selling nasi kandar under a flimsy canopy in Petaling Jaya city for five years, setting up his stall in the mornings and packing things up in the evenings to avoid his utensils from being stolen overnight. That routine changed a month ago when he received the keys to a new kiosk, solar-powered with LED lights and a lockable door, in the same area. 'I am very thankful for the kiosk,' the 45-year old told The Straits Times. 'I can lock up my things. They won't go missing.' The clean surroundings where similar kiosks have also been set up by the Malaysian government has helped sales of his nasi kandar, or rice served with curries and other dishes. The monthly rent of RM120 (S$36) is 'reasonable', he said, adding that it's early days yet. His takings were as much as RM500 a day previously. He is among thousands of Malaysian street hawkers who are giving these shiny new food kiosks a try, with the government sinking RM150 million into MyKiosk. The project was launched in 2023 to give small traders the opportunity to run their businesses legally, in a standardised, safe and hygienic environment, as well as relocating them to more strategic locations. After selling nasi kandar under a canopy for five years, Mr Syed Nurul Fakhri now runs his business at a brand-new MyKiosk in the same area. ST PHOTO: HAZLIN HASSAN The project's main promoter is the hard-charging Housing and Local Government Minister Nga Kor Ming, who said the government is giving a leg up to small traders, many of whom operate in unregulated conditions. Street hawkers all over the country often set up makeshift stalls by the roadside, selling drinks, banana fritters and fried noodles, among other things. 'With MyKiosk, we are 'legalising' their businesses by offering free rental for the first six months and (thereafter) a maximum rental rate of RM10 per day,' Mr Nga said earlier in May . Vendor Mohd Azizan, who rents a kiosk in the same location in Selangor state as Mr Syed Nurul, said: 'Customers say the place looks clean and attractive. This is better and more comfortable for me too.' Since moving into his kiosk on May 14, daily sales for his rojak buah (Asian fruit salad) have jumped from RM100 to between RM180 and RM200. Still, not everyone has had such a positive start. Ms Jamilah (not her real name), used to sell nasi lemak near bustling Jalan Tun Razak in capital Kuala Lumpur for two years, setting up her stall under a shady tree. There was no rent to pay, so she enjoyed good earnings. But like other street vendors in Malaysia, operating without a licence could get her into trouble when the municipal authorities conducted their regular checks. 'I used to sell nasi lemak by the roadside. Sales were better, but I got chased away by the authorities. I applied for this (kiosk) because it's legal,' she said. Ms Jamilah moved to her RM300-a-month kiosk in the Klang Valley area in September 2024, more than 5km away from her former spot. Business is still 'quite slow', she says, with daily sales of around RM300 to RM400 a day compared to about RM500 prior to the move. While the MyKiosk project has generally been given the thumbs up by the public for cleaning up the street food scene, criticisms include low traffic and poor earnings at some locations, as well as shortcomings about water and electricity supply. Mr Nga, the Cabinet minister, had praised the solar panels atop each kiosk, saying these eliminated electricity bills, but some vendors have posted on social media and spoken to reporters about the solar power generated lasting for only about four hours in the evenings. Others pointed to the lack of water supply or even a sink for washing, and that some kiosks were in low-traffic areas, which resulted in poor sales. 'The location is not so good. I advertised on Facebook, but some people (still) couldn't find my kiosk,' said Ms Jamilah. She said the solar power generated at her kiosk usually lasts for four to five hours from 6pm, and there is no piped-in water or available supply nearby. 'I have to bring my own mineral water supply and a power bank for additional lights,' she added. The ceiling has also been leaking and there was what looked like mould growth in her kiosk, she said. 'I was told I had to fix it myself. I painted over the 'mould', but it came back. It isn't safe for the food,' she added. Another vendor in that same location closed shop after just a month due to poor sales, she noted. In Selangor's Pandan Jaya township, of the 10 kiosks available for rent, only one was rented out and that, too, was shut when ST visited on an afternoon on May 27. In Selangor's Pandan Jaya township, of the 10 kiosks available for rent, only one was rented out and that, too, was shut when ST visited on an afternoon on May 27. ST PHOTO: HAZLIN HASSAN Mr Mike Chong Yew Chuan of the Malaysian Chinese Association, a member of the multi-coalition government, told ST there were concerns over transparency, pricing discrepancies, procurement, and overall governance of the MyKiosk programme. He said that Mr Nga has said kiosks in the Perak cities of Taiping and Ipoh were built at RM13,000 each. But in Melaka state, the same kiosk model cost up to RM22,000. 'Even after accounting for transport and local logistics, such a price gap is indefensible,' he said. On May 22, the housing ministry submitted documents related to the MyKiosk initiative to the Malaysian Anti-Corruption Commission, insisting that no funds were misused. Mr Nga said that a RM25,000 kiosk was be the ceiling price per unit for the project, and that some kiosks had been constructed for as little as RM13,000 through open bidding by local councils. He said MyKiosk was managed by local municipal councils, with 795 contractors participating in the project, thereby ruling out allegations of cronyism. He said price differences also stemmed from major upgrades in the improved version of the kiosks, rolled out under MyKiosk 2.0. These include larger solar energy capacity, improved electrical systems such as LED lighting, hydraulic windows and better-designed modules. 'These are Malaysia's first green energy kiosks,' Mr Nga said, noting that the new solar panels could generate electricity for up to 12 hours compared to four in the previous version. According to his ministry, the MyKiosk 1.0 project achieved a 87.74 percent uptake, while MyKiosk 2.0 that was launched in December 2024 has a 65.44 per cent take-up rate. A row of MyKiosks in Petaling Jaya, Selangor, yet to be occupied. ST PHOTO: HAZLIN HASSAN Responding to criticisms that the kiosks were located in poor low-traffic areas in Johor, state housing and local government exco member Mohd Jafni Md Shukor said it would review the MyKiosk locations. 'I have told the 16 local councils statewide to brainstorm and relocate those kiosks to more strategic places. We should help to promote the locations and offer training courses to the traders in need so they can improve their food products,' he was quoted as saying on May 23 by The Star daily. In a separate venture to clean up street hawking, the government has also been boosting the food-truck scene by setting aside car parks and open areas for open-air dining in the evening, all over Malaysia. The Covid-19 pandemic led to a boom in the food truck industry as many jobless Malaysians scrambled to find ways to stay afloat. Hazlin Hassan is Malaysia correspondent at The Straits Times. Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
07-05-2025
- Business
- Straits Times
Bakers, hawkers in Malaysia say they will not crack under pressure without egg subsidy
Malaysia has announced that it will end egg subsidies on Aug 1, 2025. ST PHOTO: HAZLIN HASSAN Bakers, hawkers in Malaysia say they will not crack under pressure without egg subsidy GEORGE TOWN - Bakeries and local hawkers in Penang, Malaysia will absorb any extra cost after the removal of the egg subsidy to ensure their customers are happy. Ms Phor Yok Eng, 62, who has been selling char kway teow for 26 years, said she uses five trays of eggs every day. 'I buy them daily at the local market here near my stall. I do offer the option of servings without eggs, which is cheaper, but many still prefer it with eggs, as it's tastier. 'I charge 5.50 ringgit (S$1.70) per plate without an egg and an extra 1 ringgit with an egg. 'While I know my pricing is considerably cheaper than other places, people will still grumble if I suddenly increase the price,' she said when met at her stall in Air Itam. Ms Phor said when she raised her prices two years ago, she received backlash from customers. 'You must be mindful of your customers, as many of them are retirees... The removal of the price control on chicken eggs will affect me, but I will have to absorb it,' she said. Ms M. Tan, 34, who runs a bakery selling an array of pastries and cakes, said she uses 30 trays of eggs a week for baking. 'Eggs are our key ingredient after flour... It is in pretty much everything we make at our bakery and, usually, each cake requires a few eggs, never just one. 'While it will definitely affect me, I cannot afford to raise prices. 'There is plenty of competition when it comes to cake and pastry shops in Penang, especially on the island. 'If I suddenly raise prices, I will lose customers as they can easily go somewhere else.' Ms Tan said she would rather take a profit cut than risk losing her customers. 'It will add up to a hefty amount but I will manage it,' she said. The Agriculture and Food Security Ministry announced recently that the price control on chicken eggs had been lifted, with subsidies reduced from 10 sen to 5 sen per egg, effective May 1. The egg subsidy will be completely abolished on Aug 1. From February 2022 to December 2024, the government spent nearly 2.5 billion ringgit on egg subsidies to cover rising production costs due to the Covid-19 pandemic and the impact of the Ukraine-Russia war. The government has also taken into account that the extended duration of price controls and subsidies is not sustainable for the ongoing viability of the local egg production industry and the nation's finances. THE STAR/ASIA NEWS NETWORK Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
30-04-2025
- Business
- Straits Times
Malaysia to remove egg subsidy from Aug in move that boosts govt finances, but may hurt consumers
Malaysia implemented subsidies and price ceilings for chicken and eggs in February 2022, which had surged due to supply shortages. ST PHOTO: HAZLIN HASSAN Malaysia to remove egg subsidy from Aug in move that boosts govt finances, but may hurt consumers KUALA LUMPUR - The Malaysian government will fully remove subsidies for chicken eggs from August , a move that is expected to save it RM1.2 billion (S$363 million) annually, but will hurt consumers already grappling with rising costs of living, analysts say. Currently egg producers receive a subsidy of 10 sen per egg, which costs the government about RM100 million monthly or RM1.2 billion a year . This payment will be reduced in phases, beginning with a 50 per cent, or 5 sen, reduction from May 1, followed by the complete removal of subsidies and price controls, from Aug 1. Malaysia currently imposes ceiling prices for eggs, ranging from 38 sen to 42 sen each, depending on the grade and quality. Analysts estimate that e gg prices will rise by about 3 sen each when subsidies and price controls are removed. The Agriculture and Food Security Ministry said that the decision was made after careful consideration of market stability. 'This decision was made after taking into account the industry's commitment to ensuring sufficient and stable egg production, as production costs have stabilised,' it said in a statement on April 30. 'This was evident during the recent Hari Raya Aidilfitri festive season, where supply remained sufficient and prices were competitive,' it said. It added that a special egg grade will be made available at a reasonable cost, without giving details. While the market impact may not be significant, analysts warned the psychological effect could hit hard for consumers already wrestling with rising costs. The move to remove the egg subsidy is tied to the Malaysian government's larger plan to wean consumers from depending on government largesse to tamp down living costs, as it tries to strengthen the country's finances. The Anwar Ibrahim administration, which came to power in late 2022, has been slammed by its critics for being too slow in carrying out economic reforms. Such reforms however, risk sparking public backlash and voter discontent. 'I can understand why they did it, but it is not a politically smart thing to do to remove the subsidies of eggs because Malaysians eat a lot of eggs. What I would have liked to see is that maybe they could have reduced it to 2.5 sen an egg. They should still subsidise eggs because a lot of poor people see eggs as a major source of protein,' Asian Studies Professor James Chin of Tasmania University told The Straits Times. Malaysia implemented subsidies and price ceilings for chicken and eggs in February 2022, in a bid to stabilise prices, which had surged due to supply shortages. This was partly due to the Ukraine war, which interrupted global shipments of wheat and corn, which are vital ingredients for chicken feed. Subsidies and price controls for chicken were lifted in November 2023. 'The markets will celebrate this as (Anwar's) commitment to subsidy reform but this is a move that is politically very bad. They should go after big subsidies. The egg subsidy is not that much in the overall scheme of things,' Prof Chin said, adding that the price of eggs is rising in other countries such as Australia and the United States. Other big-ticket economic reforms in the works include the removal of subsidies for petrol, which has cost the government up to RM50 billion a year, as well as a plan to expand the sales and service tax. Both plans have been delayed. Some analysts anticipate that subsidies removal will lead to a small price increase of about 3 sen per egg . They say this modest rise is due to current lower production costs. Nevertheless, this price rise will affect low- to middle-income households more, with eggs typically being the cheapest source of protein available. While a 3 sen-increase per egg may seem negligible, it could significantly affect large families that consume up to a dozen eggs daily, said Prof Emeritus Dr Barjoyai Bardai of Universiti Tun Abdul Razak's Graduate School of Business. 'Eggs have become a very important and cheap protein source. We should encourage households to take more eggs compared to pricier protein such as fish and beef,' he told ST. Retailers like hypermarket chain Mydin have welcomed the move. Its managing director Ameer Ali Mydin said allowing market forces to determine prices could lead to a more sustainable poultry industry. 'During excess supply, this is a good time to remove the price control and egg subsidy as there is an abundance of eggs in the market,' he told ST, noting that current trends indicate a stable supply and declining prices. In March, during the fasting month of Ramadan, prices of eggs fell to as low as RM6 for 30 C-grade eggs, due to reduced demand. Bank Muamalat chief economist Mohd Afzanizam Abdul Rashid agreed that average egg prices have been declining, falling by up to 13 per cent in February. 'Clearly this has opened up the window of opportunity for the government to remove the subsidies since the prices are on a downward trend,' he said. Hazlin Hassan is Malaysia correspondent at The Straits Times. Join ST's Telegram channel and get the latest breaking news delivered to you.
