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By DayakDaily Team
KUCHING, Sept 27: The Malaysia-Singapore Coffeeshop Proprietors’ General Association (MSCSPGA) has called on the Malaysian government to review its restrictive economic policies that are adversely impacting small and medium enterprises (SMEs), particularly coffeeshop operators.
In a statement today, the Association voiced strong objections to several new regulations that it says are stifling SME sector in the country.
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Chief among these is the Control of Smoking Products for Public Health Act 2024 (Act 852), which introduces new regulations on smoking and enforces a ban on smoking in public areas starting Oct 1, 2024.
“This is a critical concern for many local business owners, particularly regarding the potential impact on our operations. If these regulations affect us, how are we supposed to adapt and comply within such a short window of less than seven days?”
According to a joint report by Deloitte and the MSCSPGA, the association estimates compliance costs could reach RM620 million in the first year, with an additional RM277 million annually thereafter.
The association also raised concerns over the introduction of tobacco retail licensing, citing that it adds to the already high operational costs.
“While we understand the government’s commitment to curb illicit trade of tobacco, we are still struggling financially due to recent price hikes.
“Without a new pragmatic approach to address this, you are forcing us to stop selling cigarettes altogether – considering the fact that the sale of legal cigarettes in coffeeshops accounts for approximately 20 per cent of our members’ total revenue, which accounts for a significant portion of our earnings.
“With the rising cost of doing business, inflation, and food prices, it is challenging for businesses to cope with further revenue losses and added complexities,” the Association stressed.
It further criticised the recent diesel price hike, which has significantly increased operational costs.
It noted a 25 per cent rise in trucking delivery charges and a 30 per cent increase in construction costs, forcing many members to halt expansion projects. The hike has also eroded profit margins, threatening business sustainability.
“For the record, 20 per cent of members have been forced to shut their businesses due to these price surges. Without efforts to stabilise fuel prices or provide relief to struggling businesses, more closures will follow, triggering ripple effects across the economy and local communities.”
The MSCSPGA also expressed strong opposition to the proposed ban on foreign cooks in eateries, deeming it unfair and financially burdensome.
“Foreign cooks who meet the required standards should not be dismissed. Hiring local cooks is often more expensive, and frequent turnover disrupts business operations. Banning foreign cooks would lead to increased operational costs and instability for businesses serving local cuisine.”
Furthermore, local cooks tend to leave their jobs without prior notice, causing disruptions and negative impacts on business operations.
“Therefore, banning foreign cooks could lead to increase operational costs and instability for eateries serving local food.”
In light of these restrictive policies, the Association held that there is a need for transparent and inclusive policymaking.
“The government should establish a transparent consultation process with local and domestic SMEs and MSMEs to ensure policies are practical, reasonable, with deal considerations on the challenges faced by them.
“We respectfully request the attention of YAB Datuk Seri Anwar Ibrahim, the Prime Minister of Malaysia to review these proposed policies more comprehensively, including an assessment of its impact on costs, operations, revenue, and effectiveness.”
The MSCSPGA represents 20,000 coffeeshop proprietors across Malaysia, with a total workforce of 500,000 individuals dependent on the survival of the industry. — DayakDaily
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