PETALING JAYA: Smaller glasses of teh tarik, reduced portions of pre-packed nasi lemak and diluted beverages are signs of “shrinkflation”, a hidden inflation practice that experts say points to cracks in Malaysia’s food system.
UiTM food security expert Assoc Prof Dr Fazleen Abdul Fatah said the practice, in which portions shrink while prices stay the same, is widespread.
“This is not an isolated observation. It has become a frequent response strategy for operators facing cost pressures.”
Citing data from the Statistics Department, he said food and non-alcoholic beverage prices rose by 3.5% in July.
Further up the supply chain, the pressure was greater. Producer prices for agriculture and fishery products surged by 11.5%, driven by higher costs for raw materials, feed, fertiliser and logistics.
“This means operators are caught in the middle. They cannot transfer the full increase to consumers, or they risk losing business. So, some of the cost is absorbed through smaller margins.
“But when they cannot fully cover costs, they turn to shrinkflation. It (reduces) sudden price hikes, but still hits the wallets of consumers.”
She added that the practice erodes confidence.
“When people pay the same but get less, they feel cheated. It creates a less transparent market and in the long run, consumers may shift to cooking at home or going to eateries that are upfront about their portions.”
Fazleen added that shrinkflation reflects deeper structural weaknesses – dependence on imported materials, inefficient supply chains, stagnant productivity and climate disruptions.
She said transparency, not blanket price controls, is the way forward.
Clearer menu labelling, consumer awareness campaigns and long term investment in domestic food production are among measures that could ease pressures at both ends of the supply chain.
Universiti Utara Malaysia hospitality expert Assoc Prof Dr Narentheren Kaliappen said the real impact of shrinkflation is cultural, eroding the generosity and trust that underpin the dining traditions of the country.
“In Malaysia, food is not just about eating. It is part of our culture, comfort and community. When portions start shrinking, so does trust.
“Generosity has always been part of our food identity and losing that undermines the dining experience.”
He added that surveys conducted overseas show consumers feel misled by shrinkflation and switch brands as a result.
“That erosion of loyalty is dangerous.”
Narentheren suggested alternatives such as modest but transparent price hikes, multiple portion sizes, smarter sourcing of local and seasonal ingredients and a focus on service quality.
“In hospitality, trust is everything. Once lost, it is very hard to rebuild. Shrinkflation may keep businesses afloat today, but it chips away at customer trust in the future.”
