MIRI: The constant slide of the ringgit this year has caused business owners here to increasingly feel the pinch.
On Monday the ringgit hit a nine-year low against the US dollar.
Courier agent Camellia Lee, who depends on the popularity of overseas online stores for deliveries said the ringgit’s decline has been difficult on business.
“Since the beginning of this year, the ringgit’s value has dropped drastically. My customers are declining in number. This could really affect our business as a courier agent.
“With fewer people buying, our income declines. We are worried about how to survive this global recession,” she told The Borneo Post.
Lee said since the goods and services tax (GST) came into effect on April 1, many of her customers have been more cautious with purchases or resorted to buying locally.
“Indeed, everyone tries to save a bit in order to survive the situation, but as the person in the business, it is crucial for me to say that we might need to work harder or find another way to pay the bills,” she said.
Retailer Linda Lai, who imports apparel from countries such as Spain and the United Kingdom, said the drop in the ringgit has been painful.
“For a start, I pay my suppliers in currency. Hence, the cost of my stock has increased by at least 10 per cent. To make my customers happy, I make sure I absorb the GST and also try to control the price within the original price range.
“It is important to be persistent because if I choose to give up, it is not only my loss but my customers might be unable to purchase their favourite brands,” she said.
Other traders interviewed said there has been little change with their businesses.
“Despite the slight inflation due to GST, we try to control the price within the affordable range. The lives of our people would be very difficult if everyone tries to make a profit out of this situation,” said one merchandiser who did not wish to be identified.
On Monday the ringgit hit 3.772 against the US dollar but opened higher against the greenback at 3.7295 yesterday.