Is eating out getting way too pricey in Johor Bahru?

By D. KANYAKUMARI

Johor Bahru has long been a top destination for Singaporeans due to its proximity to the island republic and the significant Malaysia-Singapore currency difference.

However, food prices in Peninsular Malaysia's southernmost city have been steadily rising.

And a recent incident, where a Malaysian family was reportedly charged RM1,260 at a seafood restaurant, has caused many Johoreans to question whether their Singaporean neighbours might have influenced restaurant prices and contributed to the current state of affairs.

To be clear, the eatery at the heart of the recent controversy has since sought to clarify what happened, explaining that the meal had been for about 20 people.

Additionally, not withstanding Domestic Trade and Cost of Living Ministry investigations into the matter, many Malaysians have been quick to point out that seafood is generally expensive and a hefty bill for a large group of diners is the norm.

Nevertheless, many Johoreans contend that it has become difficult, if not impossible, to eat out, no thanks to businesses in the city looking to cash in on Singaporean visitors who have contributed immensely to Johor and Malaysia's coffers since the reopening of international borders on April 1, 2022.

From expensive to exorbitant

According to Johorean Aswirni Tinmerasamy, food prices in Johor Bahru have always been steeper than many other Peninsular Malaysian cities, simply due to Singapore being a stone's throw away.

However, costs have soared exponentially since the pandemic.

"A simple example would be nasi lemak with chicken. In 2019, a plate around the Jalan Dobi area cost RM10, but now, it's about RM16.50. That's a 60 per cent increase!" the chemical engineer remarked.

Amylya Endoro, a Johor Bahru-based conference producer, concurred.

"My work is largely at Persada Johor. So, my team and I often go out around the area to eat during working hours.

"Food here is at least RM3 more expensive than what I can get in my neighbourhood of Impian Emas," she said, adding that prices appear to increase the closer one is to the Causeway.

To pay or not to pay, that is the choice of the consumer

Despite the sentiments of some locals, however, some believe that regardless of escalating costs, it is up to the general public whether or not they wish to dine out.

Plus, there could be other factors at play here.

"It has to be said that the consumer has the ultimate choice. Yes, I'm aware that Johoreans feel that Singaporeans are the reason prices are going up. But the reality is that the prices of raw materials have gone up significantly too," said Low Kueck Shin, president of the Johor Bahru Chinese Chamber of Commerce and Industry (JBCCCI).

"This is especially true post-pandemic, and (in some cases) restaurants have had to (raise prices) to cover costs," he continues, noting that food operators have also had to deal with higher rentals over the last couple of years.

Additionally, Low says that the depreciating ringgit and the fact that food ingredients are imported have also contributed to the current situation.

Say 'no' to price controls

All that being said, and while the government has maintained subsidies and price controls for certain items, it might not do for the powers that be to dictate how much eateries charge for meals.

Nevertheless, what could help is for Malaysia to seriously look at how salaries can be increased.

"Price controls won't work because let's face it, the police need to police prices and then someone needs to police them to prevent corruption. So, where does it end?

"However, to solve the issue, the government could work on increasing wages," said Dr Lim Kim Hwa, a fellow in finance at the University of Cambridge and a director at Penang Institute.

Noting that prices of food, rent and essential items are always higher in popular areas, Dr Lim added that perhaps it is also incumbent on consumers to consider their means, and not just make undiscerning purchases.

"The further you move away from a high-end area, the less expensive things will be. So, if you cannot afford it then you should move away," he suggested.

Meanwhile, JBCCCI's Low points out that price controls could adversely affect production and output.

"Let supply and demand do its work. If you think it's expensive, don't go and eat at a seafood restaurant.

"The only thing we can and should do in this situation is work towards increasing the wages of people living in the state. Compensate them with higher pay, because the economy is not growing. Not at full swing, at least," he said.

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