Rising inflation takes toll on micro-entrepreneurs, warns PN MP
FARHANA ABD KADIR
SHAH ALAM - The government must formulate strategies, initiatives, and a special approach to aid the struggling small businesses affected by the current economic situation.
Perikatan Nasional (PN) Youth deputy chief Wan Ahmad Fayhsal Wan Ahmad Kamal said that the inflation that is currently hitting the country impacted micro-entrepreneurs and small hawkers' sustainability.
"Due to the rising costs of business capital and rental fees, small-scale hawkers are compelled to increase their selling prices, which, in turn, reduces purchasing power.
"Not only are they burdened with escalating raw material costs, but they also face losses as purchasing power declines," he wrote on his Facebook today.
The Machang MP further noted that the national inflation rate of 2.8 per cent, along with the increase in the Overnight Policy Rate (OPR), has affected household expenses.
He said that the circumstance had caused consumers to be more cautious when making purchases.
"Inflation leads to a decrease in consumers' purchasing power as they struggle to afford goods that have become more expensive.
"Inflation occurs when there is a general increase in the prices of goods and services over a specific period, reflecting the decline in consumers' purchasing power," he added.
