The Malaysian Insight

WITH the Mid-Autumn Festival approaching, colourful boxes of mooncakes for sale would usually be a common sight at supermarkets and Chinese restaurants but business is bleak this year because of the Covid-19 pandemic.

Sales have been affected, falling by 40% to 70% overall, but some places are doing better than others, said a restaurant and bakery operator.

Demand for mooncakes has suffered slightly in Selangor and Kuala Lumpur and falling sharply in other regions, especially Johor Baru and Kedah.

Lum Tuck Loy, executive chairman of the Kam Lun Tai Restaurants Group, whose mooncakes are well known, said demand in Johor Baru has been affected by the fact that the Malaysia-Singapore border is still closed to non-essential travel.

“The main reason is that the Malaysia-Singapore checkpoint has not been reopened. Singaporean tourists and Malaysians working in Singapore are unable to return.”

Lum said this caused mooncake sales in Johor Baru to drop by at least 40%.

Mooncakes are a seasonal food and usually given as gifts. Therefore, they will not be a top priority for consumers looking to tighten belts because of economic uncertainties caused by the pandemic.

The Liu Mama bakery in Johor Baru, which is well known for its handmade mooncakes, relied on Singaporeans for most of its mooncakes in the past, said founder Boo Soon Long.

“The absence of Singaporean consumers has affected many industries in Johor Baru, including mooncakes,” said Boo, who estimates his bakery’s business has shrunk by 70% due to the pandemic.

He is hoping that the Mid-Autumn Festival, which begins in early October, would drive some sales.

“I think business can survive but we won’t be able to reach our original targets.”

To attract customers, Liu Mama, which has three branches in Johor Baru, has turned to taking orders for customised mooncakes and delivery services.

“For example, for business buyers, they can print their own trademark or logo on their mooncakes and send them to their customers. We will also help deliver them to their customers,” Boo added.

Lum of Kum Lun Tai Restaurants, meanwhile, said their outlets, which are also popular for their mooncakes, are doing well in Kuala Lumpur but not in Kedah, for example.

“The enhanced movement-control orders (EMCO) in some districts there have put a damper on demand.”

Even though the rest of the country is under the recovery MCO and people are allowed to go out to shop and eat, the crowds are not the same and consumer numbers are still low.

Kum Lun Tai Restaurants, which used to have booths in shopping malls selling mooncakes in previous years, has for the first time slashed the number of these stalls.

“We used to set up a kiosk in almost every supermarket and mall, but this year we have to be more strategic,” said Lum.

The group also exports its mooncakes, but has seen a drop in orders by between 40% and 50% this year.

“We usually export to Indonesia, Australia, Brunei and other countries every year. This year, Indonesia reduced a lot of orders.”

Mooncake makers would likely be maintaining prices so as not to burden customers, but the reality is that the pandemic’s impact on normal business activity has caused the prices of some ingredients to rise, Lum said.

“Walnuts and almonds are mainly imported from China and the United States and their prices have skyrocketed.

“Other ingredients used in mooncakes also cost more now. I think the pandemic has caused problems at factories and with transportation, which made the prices of raw ingredients expensive this year.”

The Mid-Autumn Festival, which is usually a lively time of lantern parades and gatherings at temples, will be more solemn this year, Lum added.

“Many temples have cancelled activities, but this is also for people’s safety due to Covid-19.” – September 21, 2020.