MIRI: Small traders in the city say a state-backed reduction in stall rentals is helping to offset mounting cost pressures, as global instability continues to drive up prices across supply chains.
The Wireless Walk Miri Traders Association said a 50 per cent discount on stall rentals under local authorities has eased one of the most immediate financial burdens facing its members, many of whom operate on tight margins.
Its Chairman, Mohamad Abdullah Jamin, said the measure had provided “direct relief” at a time when traders are contending with higher costs for goods, transport and utilities.
The move comes as businesses grapple with the knock-on effects of volatility in global oil markets, linked in part to ongoing tensions in the Middle East.
Higher fuel prices have translated into increased logistics and distribution costs, pushing up the price of goods at the retail level.
For small operators, fixed expenses such as rent can be difficult to absorb when revenues fluctuate.
Traders say the rental cut has created space to manage rising input costs without immediately passing them on to customers.
Electricity costs, another major overhead, have also been reduced under the state’s measures.
This is particularly significant for food and beverage operators, as well as retailers reliant on refrigeration and extended trading hours.
Mohamad said the combined relief on rent and utilities was allowing traders to stabilise day-to-day operations.
“It helps us manage costs without raising prices too quickly, which is important in the current environment,” he said.
Prices of key raw materials, including poultry, cooking oil and vegetables, have risen steadily in recent months.
Imported goods have also become more expensive, reflecting higher freight charges and currency pressures.
Traders warn that without some form of cost mitigation, businesses would have little choice but to adjust prices, risking a slowdown in consumer spending.
The association said the current support measures were helping to sustain business activity along Wireless Walk, a well-known trading area in Miri, while preserving jobs within the local community.
Beyond immediate cost savings, the reduction in overheads is expected to give traders limited room to reinvest in their businesses, including improving product quality and service standards.
The group expressed hope that similar targeted measures would be maintained, particularly if external economic pressures persist.
For now, traders say the rental and utility cuts have provided a buffer against a challenging operating climate, offering a degree of stability as they navigate continued uncertainty.
