KL alcohol sale restrictions adding to SMEs’ woes, say traders
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CITY Hall (DBKL) and Putrajaya must reconsider the ban on the sale of alcohol in mini markets, convenience stores and Chinese medicine halls as it is putting undue stress on businesses that are already struggling from the effects of Covid-19, owners say.
They said the ban will only benefit big supermarkets and punish the small- and medium-sized enterprises (SMEs).
The ban will also not reduce the consumption of alcohol as it is still readily available elsewhere.
The Malaysian Insight spoke to the owners of two Chinese medicine halls and a mini market who are collectively stuck with inventory worth close to RM250,000.
Loh Kim Fong, managing director of Fahmi Lian Herbs & Food Sdn Bhd, said the government is punishing those who had faithfully adhered to the regulations for no apparent reason.
“We are always careful about the sale of liquor. We follow whatever guidelines that they impose on us and yet suddenly, we are faced with a ban,” Loh told The Malaysian Insight.
“We don’t sell to Muslims, we don’t sell to those aged below 21-years-old and we don’t sell fake alcohol.
“We are here to serve the community and most of our customers know us personally and have been coming to us for years because they trust us.
Loh, who is also the Chinese Drug Dealers Association president, said until now, he had had no problems in the 30 years he had owned a liquor licence.
His shop in Taman OUG has a separate section where the alcohol is displayed and sold, as required by regulation.
Loh is sitting on about RM100,000 worth of whiskey, brandy and wine that he has no way of selling as the ban had also automatically cancelled his liquor licence.
“Now we also can’t sell mixed or pure liquor for medicinal purposes which affects our business and customers.
“Whatever stock we currently have, we are stuck with it. We can’t sell it and the suppliers won’t take it back either.”
Sundry shops, convenience stores and Chinese medicine halls in Kuala Lumpur were prohibited from selling hard liquor on November 1.
Federal Territories Minister Shahidan Kassin said the main objective of the ban was to limit the access of Muslims and minors to alcohol.
Fake alcohol
Tham Yen Chen, owner of Mega Grade Sdn Bhd, a Chinese medicine hall, said she was lucky as she was able to cancel her liquor orders before the ban was announced.
“My liquor licence expired in September and I applied to renew it. In October, DBKL sent me an email informing me that it was approved.
“But when I went to their office to collect it, I was informed that my licence was frozen.
“That was when I decided to call the suppliers and cancel all my orders. Even so, I’m left with about RM30,000-40,000 worth of products in my shop,” she said.
In the 27 years that she had held a liquor licence, she said it had always been cumbersome to renew it as City Hall was always coming up with new guidelines.
Tham said it was disappointing that the government has come up with this policy.
“They are supposed to help small businesses but now the bigger supermarkets are going to monopolise the sale of alcohol.
“Not allowing us to sell is also going to lead to more fake alcohol circulating in the market. This is something that the government cannot regulate.
“It may lead to more deaths from alcohol poisoning, especially among foreign workers.”
Chua Keng Sua, owner of Bukit Indah Supermarket in Kepong, shared similar concerns with Loh and Tham.
“I have RM100,000 worth of alcohol that I cannot sell. We feel that we are being squeezed by the government and our livelihood is going to be very affected by this decision,” he said.
Leong Keng Fun, vice-president of the Associated Liquor Merchants of Malaysia (Alma), said that he had met with DBKL and Shahidan to highlight the members’ plight.
Alma represents 400 medicine halls nationwide, 150 of them in Kuala Lumpur.
“We told DBKL that this ban is discriminatory against us. Supermarkets are still allowed to sell, so what is the difference between a supermarket at a residence area and a sundry shop in the same area?” he asked.
Leong, who owns Nam Lee Cheong Sdn Bhd, an alcohol distributor, said the medicine halls contribute to around RM15 million in the annual sales of alcohol.
“DBKL is saying that these shops are selling cheap liquor that leads to drinking in public. Drinking in public is not under our purview, it is a user problem.
“Cars cause accidents but we don’t ban the sale of cars, do we?”
Now that customers are also limited to buying from supermarkets, he said this will give the outlets a monopoly and allow them to press manufacturers and distributors to lower prices.
“If there is a demand and there is no legal supply, there will be illicit sale of products – via WhatsApp, home delivery.
“They are not regulated and the customer may be buying tainted products because no one is regulating them.”
Chinese New Year hampers
All four also said the ban means Chinese New Year hampers sold in their outlets can no longer come with a bottle of liquor, which is a norm in the culture.
“We sell customised hampers. We allow our customers to choose the items and then we pack it.
“Now that we cannot include alcohol in the hamper, this is no longer lucrative,” Loh said, adding that some hampers can cost a few thousand ringgit.
He added that during Chinese New Year, he sells up to 500 hampers.
Tham said gifting hampers with alcohol is a way to show appreciation and has always been part of Chinese culture.
Chia, who sells hampers not only for Chinese New Year but also for Christmas and Deepavali said that this will drive his existing customers to purchase from other vendors.
“I see about 300 to 400 hampers during Chinese New Years. Now that I cannot include alcohol in them, my customers will definitely look elsewhere and I will lose money.”
Under the new prohibition, beer will still be allowed to be sold although only between 7am and 9pm, and placed away from other beverages.
The ruling also states that businesses in front of police stations, places of worship, schools and hospitals may not sell alcohol.
At present, businesses that are allowed to sell alcohol are restaurants, pubs, bars, hotels, commercial complexes, warehouses, supermarkets, hypermarkets. These places are also allowed to hold promotional activities that serve liquor. – November 15, 2021.