Retailers unconcerned over price ceilings, anticipate smaller profits

RETAILERS in the country are confident that price ceilings imposed on goods for the upcoming Hari Raya period will not have adverse effects on profit margins.

The government has imposed price ceilings on a number of select items beginning July 21.

The majority of businesses interviewed by The Brunei Times say that despite anticipating a smaller profit margin, price control measures taken by the government on selected goods will not have a significant effect on sales.

A supervisor at Hua Ho Department Store Kiulap branch, Mohd Faizal Abdul Hassan, said that the introduction of the price control measures will not affect the store's business, but noted that the profit margin would be smaller.

"There are still many people coming to our stores to buy other items so it does not really matter. Of course the profit is less but it does not matter, more people are coming to buy the Hari Raya items from us (due to the price ceilings)."

The introduction of the price ceilings is a yearly initiative that the store strictly complies with, said the supervisor.

A supervisor at Pertama Department Store in Jerudong said the price ceilings will not affect business.

"So far, it has not affected our business yet. I don't think it ever will because we still make profit from people who come here to buy those items, although the profit is smaller than normal (business) days," said the supervisor, who wanted to be known as Liew.

Liew described the price ceilings as something "equivalent to organising sales during the festive seasons".

Jamil Husain, a branch supervisor at Saimajaya Trading Co Sdn Bhd in Kg Manggis, said that it was "okay" for the company to earn "small profit margin during the season".

"It is the Hari Raya season, so we all know that everybody wants cheap prices for necessary items," he said.

The decision to impose the price ceilings is to control prices of items that are mainly used for food to be served during Ramadhan and Hari Raya, the Department of Economic Planning and Development said.

Affected items include whole chicken, eggs, meat, margarine, ghee, condensed and evaporated milk, flour, cashew nuts, chocolate hazelnut spread,chili shrimp floss and popia (spring rolls) skins.

The Brunei Times