Wednesday, January 9, 2013
Malaysians’ buying power..
.. reduced again?
Escalating cost of living and decreasing purchasing of power.
In July 2008, Malaysia’s inflation rate has shot up to 8.5% which was the highest in 27 years! Yes, you heard that right, 27 years. Gone were the days when we heard our leaders promoting 0% inflation rate (i think I last heard about that when I was in primary school). Gone were the days when our Ringgit Malaysia currency was higher than Singapore Dollar.. and we could go to Singapore and shop happily. Gone were the days when RM 2000 a month for a fresh graduate could be considered as “good”.
And gone were the days when our nation carried the hope of minimizing poverty in the country, thanks to words n promises from our leaders.
The reality all of us Malaysians are facing is this – our not-so-strong buying power has been reduced again and I’m afraid the number of poor families are going up.. rather than going down.
Just look at the number of articles related to people suffering from the inflation – “Real people, real pinch“, “Housebuyers cry for help“, “Change in eating habits“, “Going domestic to cut cost“, etc. All these articles are from The Star Online. Imagine if you try to go New Straits Time, Malay Mail or even try to Google. How many such cases would you encounter?
The latest budget 2013, from what I saw (i just went through it briefly), does look like it can help a little with the house loan stuff, the reduction for import taxes (but i believe…poor families don’t really have the luxury to buy that much imported stuff.. no? and the richer families would be facing problems with fuel and food price..), and also subsidies for certain food.. but.. i don’t seem to notice anything about subsidy for rice? Is it because of the recent worldwide rice shortage problem? I’m not sure.
Well.. no matter what.. there are just things that we cannot control.. the new Budget 2013.. the rice crisis.. the energy crisis.. the economy downturn.. But there are few things which we can control:
• Control our $$$ better – put them in safer places such as defensive stocks, FD, ASB, Unit Trust etc.
• Avoid eating too expensive food.
• Stop smoking and drinking because those 2 can cost a lot.
• Avoid eating outside. Cook at home is a much cheaper option.
• Plan your journey ahead. Avoid getting stuck in jam because the amount of fuel consumed is not worth it.
• Resist the temptation to buy expensive gadgets (telling myself).
• Plan your vacation to be simple.. like going for domestic destinations instead of going abroad.
• Fully utilize the tax exemption stuff. There are a lot of things which you can save $$ on, by utilizing your rights as a taxpayer.
• If you can avoid buying a new house.. then don’t buy it now since properties cost a bomb nowadays (material cost going up). Try to rent or buy older properties (if you insist on buying). If you insist on buying the newly launched properties, then be prepared to pay a lot.
• Indulge yourselves in cheaper hobbies.
• Find other food options other than rice.
• WORK HARDER! Look at other opportunities.. such as selling insurance, mutual fund, or other part-time jobs. I know there are a lotttttt of other things which we can control. In the end.. I feel that the most important thing to do is not to give up hope.. be positive. I know sometimes it’s hard.. but I believe that if you’re positive and optimistic, there are a lot of things which you can achieve.
p/s.. do remember though, our Central Bank aka Bank Negara has not increase the interest rates. I fear that there will come a time when the Bank Negara is forced to increase the interest rates.. so be prepared to have a much higher inflation rate.
Labels: Current Affairs
just my 2cents at 11:49 AM |
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