In fact, according to Hawkers and Petty Traders Association (HPTA) chairman Ang Say Tee, business has been down by 30%-40% since 2015.
“Since the goods and services tax was implemented in April 2015, our business has been down. In 2017, the value of the ringgit dropped, causing prices of items to go up.
“However, our customers say their salaries are still the same and due to that, they are cautious in their spending,” he told FMT.
But during FMT’s visit to the once-bustling Chinatown of Kuala Lumpur, the haven for bargain hunters seemed empty. There were more foreigners than locals frequenting the area, which hosts 773 traders.
Ang said prices of goods remained the same as part of efforts to woo people into shopping during the festive season.
However, this does not appear to be working.
“Look around, there is no crowd. Years ago, people could hardly walk here. It was so crowded,” Ang said.
He said another factor for the drop was that locals now preferred to do their last-minute shopping at malls.
“We are depending on tourists for business. But yet our business has dropped by 30%-40% over the past two years. It is very frustrating.”
He added that the traders had overheads to pay, the rental of their trading spots and storage space, business licences, parking and staff salaries.
According to Ang, about 10% of traders have closed shop since 2015.
He said locals only came down to Petaling Street for the food as it is known for its hawker fare like roast duck, claypot chicken rice, chee cheong fun, Hokkien fried mee and porridge.
“The food business is doing well because people have a lot of variety to choose from.”
He urged the government to continue promoting the place to locals and tourists.
A trader who did not want to be named told FMT that operational costs were too high to maintain with business slowing down.
He said manufacturers set a minimum limit for orders while traders were forced to buy in bulk to get a discount.
“But it takes us a long time to sell the products. And because of that, we buy items from other retailers at a higher price,” the trader said.