Chief statistician Datuk Seri Mohd Uzir Mahidin explained why food costs are generally lower in urban areas like Kuala Lumpur and Penang compared to rural areas such as Terengganu and Melaka. He attributed the difference to high population density in cities, which allows businesses to rely on higher customer volumes, enabling them to keep prices competitive. In rural areas, however, limited customer bases lead to higher prices, as businesses must raise costs to compensate for lower demand. Uzir highlighted that supply scarcity in these regions further elevates costs, making certain items unexpectedly more expensive despite lower operating expenses.
Penang
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