Hypermarkets have mushroomed in Penang and are badly affecting other retail businesses.

Penang has two Macro outlets - one in Sungai Dua on the island and the other in mainland's Seberang Jaya, Cosmart in Bayan Baru, Pacific in Megamall Pinang at Prai, Sunshine in Bandar Baru Air Itam, Carrefour in Seberang Jaya, Tesco in Jelutong and, the latest on-going project, Giant in Bayan Baru.

Under the guidelines set by the Domestic Trade and Consumer Affairs Ministry, hypermarkets should be built on a ratio of one for every 350,000 population.

Penang, which will soon have eight hypermarkets, will be catering for a population of at least 2.8 million.

However, the state only has 1.4 million inhabitants.

"Too many hypermarkets around for a small population," said grocery shop retailer, Ahmad Abdullah Chik, 42, who runs his business in Jalan Datuk Keramat.

His business has been badly affected by the hypermarkets, which offer a wide range of varieties at a reasonable price.

Due to the growth of hypermarkets, several supermarkets in the state have also wound up their business over the past few years.

Similarly many retail shops, sundry shops and mini markets have also been affected.

Although hypermarkets provide consumers affordable goods and reduce their cost of living, the state government is being urged not to ignore the small retailers.

Approval suspension

Last year, the government stopped issuing approvals for the building of hypermarkets in Penang, Johor Bharu and Klang Valley when a study revealed that these places have an oversupply of such businesses.

Despite the suspension on new approvals for hypermarkets, in October 2004, the Penang government went ahead to approve the construction of Giant.

Penang DAP organising secretary Danny Law Heng Kiang said the state government might have ignored the order for 'selfish interests'.

The Giant project makes a mockery of the 350,000:1 population- hypermarket ratio. Once it is operational, the Bayan Lepas, Bayan Baru and Sungai Dua areas, which has about a population of 200,000 will have three hypermarkets.

Another guideline stipulates clearly that hypermarkets should be built at a range of 3.5km from a residential or commercial hub.

In Penang, all hypermarkets are built in urban centres bustling with residential and commercial activities, thus becoming a major source for traffic congestion during peak hours.

On a positive note, hypermarkets create jobs for locals and generate a competitive consumer market.

ATHI VEERANGGAN is malaysiakini's Penang-based stringer.