Larkin: Squeezed by rising logistics costs, heavy reliance on imported goods and rapidly changing consumer purchasing habits, small traders at Larkin Wet Market are struggling to keep their businesses afloat. However, the implementation of the BUDI MADANI Diesel (BUDI Diesel) programme, which provides a subsidised diesel price of RM2.10 per litre from July 1, is seen as a proactive government measure to stabilise logistics costs and help small traders cushion inflationary pressures.

According to BERNAMA News Agency, snack and frozen food trader Hashim Dahlan, 59, who has operated at the market for 27 years said the initiative has brought much-needed relief to the trading community in sustaining their businesses. "The diesel and petrol subsidies have helped a lot. When fuel prices remain stable, other costs will also be more stable," he told Bernama here today.

Second-generation coconut trader Shahrul Kamil Othman, 42, who continues a family business spanning more than 30 years said intense competition from the emergence of new markets, coupled with fluctuating raw material prices, has contributed to declining sales. Grateful for the BUDI Diesel initiative, he said traders needed government intervention to stabilise the prices of essential raw materials, particularly imported goods affected by limited domestic supply, rather than relying on one-off financial assistance. "One-off assistance only provides temporary relief, but stabilising the prices of essential goods offers longer-term benefits," said Shahrul, who imports coconuts from a neighbouring country at higher costs to meet demand.

Fish trader Azmi Abu Bakar, 53, said the growing preference among consumers for cash-on-delivery (COD) services, coupled with the presence of mobile fish vendors operating outside the market, had reduced customer traffic to traditional market premises. "This year is quite different from last year. Business was slightly better then. One of the contributing factors is direct sales by traders outside the market. As small traders here, we are certainly feeling the impact," he said. He added that changes in the business landscape, together with higher logistics costs, had made it increasingly difficult for small traders to compete on a level playing field.

The BUDI Diesel initiative allows eligible owners of private diesel-powered vehicles to purchase diesel at the subsidised price of RM2.10 per litre instead of the market price of RM3.97 per litre. With more stable logistics costs through the targeted subsidy, small traders at Larkin Wet Market now have greater room to manage their operating expenses without having to pass on sharp price increases to consumers.