Local SMEs cautiously optimistic about economy
KUCHING: Operators of small and medium enterprises (SMEs) here are cautiously optimistic about the overall health of the economy in the weeks ahead of the Chinese New Year (CNY).
A grocer who wanted to be known only as Ah Ming has a rather poetic way to describe the situation in view of the CNY ushering in the ‘Year of the Rooster’.
“You can walk like a proud rooster this year, but do not expect the hen to lay any golden egg for you,” he told The Borneo Post at his shop in Mile 11 near here yesterday.
Ah Ming said as far as his business was concerned, it would not be affected much since he was running a grocery store.
“I have regular customers comprising local residents and the construction workers working nearby. I don’t know much about the economy as I do not have a university degree, but this year in general, it ( business) would not be so good,” he said, adding that he and his wife were contemplating to enjoy their retirement together in a few more years.
“We have been saving for many years. Once we have enough, we will close shop,” he said with a smile.
For a local supermarket owner, he definitely felt the pinch from the economic uncertainty.
“We in the business community can definitely feel it. For me, I anticipate less profit this year than those recorded in past years.
“It is quite hard to tell how long this economic sluggishness will remain. We had already felt the pinch during the Hari Raya Aidilfitri and Christmas seasons last year,” he said, requesting anonymity.
However, the supermarket owner believed that his business and those running the same enterprise would remain resilient during these ‘lean’ times.
“People still need to eat and supermarkets are another option for them to buy foodstuff apart from the markets and grocery stores.
“We still hold seasonal promotions and discounts for our shoppers but honestly, we have no choice but to pass on some of the manufacturing, overhead and retailing costs to the consumers,” he said.
You can walk like a proud rooster this year, but do not expect the hen to lay any golden egg for you. Ah Ming, local grocer
Meanwhile, a spokesperson of a local wholesaler observed that the current weakening of the market had resulted in lower purchasing power among the consumers.
“As such, this year’s CNY might be a little bit lacklustre – I don’t expect those celebrating it would spend as much as they had previously.
“Moreover, our business has been affected by bigger players that get direct supply of goods from their own manufacturers – a much cheaper undertaking,” said the spokesperson.
However, a noodle seller – known only as Ah Hai – held a different, more positive outlook.
The Sri Aman-born man, who runs his stall at Sungai Maong Bazaar here, said his intention to come here years ago was to seek ‘greener pastures’.
“I wanted to try my luck in Kuching and so far, it’s much better (than in Sri Aman). I notice that the Kuchingites do eat out more often that the Sri Aman folk – a very good thing if you asked me,” he said.
Ah Hai was confident of having more customers in the days approaching CNY.
“More people are likely to return to Sungai Maong by then, and I’ll be ready to offer them my popular ‘ Satay Noodle’ and my other specialty, the ‘Crispy Noodle’,” he said with a hearty laugh.
For a local salon proprietress, festive occasions like the CNY had always been the busiest of times regardless of the economy.
“It has been for years, as far as my BDC Commercial Centre outlet is concerned.
“Actually, I have secured more hair appointments for CNY 2017 than I did in 2016. We have been actively running promotions since last Hari Raya,” she said.
However, she acknowledged that the overall business climate had been ‘rather gloomy’ lately.
“The bookings come from my regular customers – very few are new customers. My other outlets – while not doing too badly, are not doing too well either. It is also very worrying to hear that many beauty salons in Kuching are closing down due to their inability to settle loans.
“As a business owner, I need to come up with strategies to stay afloat and remain resilient throughout 2017,” said the proprietress, who has been in the line for more than 20 years.