Malaysians Face Higher Fruit Prices as Import Costs Surge from July

Starting July 1, Malaysians may pay more for imported fruits due to a 5% sales tax, 30% freight charge hikes at Port Klang, and rising electricity tariffs, alongside existing import duties, causing and import supply issues, significantly increasing traders’ costs, the Kuala Lumpur Fruits Wholesalers Association warns.

Higher Fruit Prices

Prices for imported fruits in Malaysia are set to increase from July 1 due to the following reasons:

1. 5% Sales and Service Tax (SST): A new tax applied to imported fruits.
2. 30% Increase in Freight Charges: Higher container handling and storage fees at Port Klang.
3. Higher Electricity Tariffs: Increased base electricity tariffs in Peninsular Malaysia, impacting cold storage costs.
4. Existing Import Duties: Duties ranging from 5% to 30% on fruits from countries like Thailand, South Africa, and the United States.
5. Rising Global Supply Costs: Increased prices for fruits, e.g., Chinese apples doubling from RM50-60 to RM100 per box.
6. Shrinking Supply: Reduced fruit production in countries like Australia and the United States.
7. Unfavorable Exchange Rates: Currency fluctuations making imports more expensive.

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