Rising Cost Of Living A Misery To Wage-Earners

Rising Cost Of Living A Misery To Wage-Earners
(Bernama) -- When the price of fuel goes up, the average consumer has every reason to feel apprehensive over its domino effect on the daily necessities and services.

These days spikes in the price of necessities including fuel seems to be a routine affair and a bane for the average wage earner.

Motorists who were paying RM1.85/liter for RON95 and RM2.10/liter for RON97 last July are now paying RM1.90 and RM2.50 respectively. Many motorist dislike the highly subsidised RON95 saying it affects their vehicle's performance but using RON97 badly affects their monthly budget.

The small onions from India that used to sell at RM4 per kg a month ago is now selling at RM14 in some places, the greens, poultry, and almost everything else has gone up except the people's net income.

Many not only have lost count of the price hikes but have given up hoping that the prices will stabilize. Nowadays, the beleaguered consumers just pay without asking much on the prices imposed by the traders and service providers fearing the prices could be much higher the next day.

COSTLY TRANSPORTATION

Public transportation cost not only has gone up but also has made traveling difficult for commuters.

"Taxis operators could now justify why they should not be using meters. Their excuse, it's not worth the trip, except for far distance or at an agreed price with the passenger. Yet, the fact remains that the commuter still pays a far costlier fare," said Sawaliyah Mohd Nor who has to haggle over the taxi fare each time she returns to her home located 7 kilometers from a commuter station in the Klang Valley.

The taxi operators' excuse for not using the meter is that they too are hard pressed looking at the rising cost of living and thus they have to find more money.

Moreover, they still have to bear the daily taxi rental and other costs and this pushes up the operating cost higher than the estimated taxi rates.

But when pointed out that they are using the much cheaper subsidised LNG, they were quick to contend that they have to spend long time queuing up to refill and this contributes to a lost of income.

MANY NO LONGER BOTHERED

While most lament over the rising prices, surprisingly there are some who seem to be indifferent.

"I used to frequent an eatery that is relatively nice and clean but I'm not sure whether the prices there are higher than elsewhere? White rice with a fried fish, a vegetable and carrot juice cost RM7 only. The price is OK with me. I'm sure I can afford to continue eating there," said a government retiree Abbas Hasan, who now teaches under contract in Nilai, Negeri Sembilan.

Maybe the price is reasonable in Nilai.

THE RIGHT CHOICE

A disheartened Universiti Malaya undergraduate when taking about rising prices noted that 'what goes up never comes down'.

"Now the prices are even going to be higher. Only that we have to be more discerning in our choice and keep our expenditure within our budget," said Mildred, a Sabahan.

A food stall operator Siti Gayah Muhammad provided some insight on how she sets the pricing of her menu.

"We look at the prices of the ingredients for the dish. The price or small and big onions, and garlic has multiplied and at times it is difficult to source them. A medium sized onion from Holland costs 40 sen. I still buy them because the onions from India rot fast. Thus, to me the choice is to use less onion or or use the expensive onion and raise the price of the food that I sell," said Siti while busy stirring the ingredients in the frying pan.

"I can do away with the onions, but I may lose customers by providing less tantalizing food".

THE PRICE OF REAL ESTATE

Other than the transportation and food cost that are seeing a rising trend, the price of real estate too is on the rise.

Several developers when asked on this admitted that there is a preponderance towards luxury properties like terrace houses, semi-detached homes and bungalows.

A simple new double-storey terrace now easily fetches up to RM1 million in the Klang Valley while bungalows cost three to four times the amount.

"Our company focuses more on bigger and comfortable homes. Construction of quality is also given priority. The material used is also of higher grade. This is why the prices are higher!" replied the housing developer's representative when asked on the prices of the properties in their new development in Shah Alam.

Obviously prices of landed properties have gone beyond the affordability of the average wage earner. Just how many wage earners could afford to set aside a big portion of their income to repay housing loans especially under the present circumstances where they have to spend more on the basic necessities.

THE DAILY LIVING COST HEADACHE

"Those living in towns, who drive to office, have to eat out during their working days, pay for parking, pay for the rental or bank loan and have to spend on their children and thus it is almost impossible to even save RM500 per month," said Datuk Dr Ma'amor Osman, the Malaysian Muslim Consumer Association's Secretary General when asked on his views on the current situation.

As for those with domestic helpers, the expenditure is definitely much higher. A couple in their thirties with two children, with a combined income between RM7,000-RM8,000 will definitely find it difficult to afford an expensive house even if the loan repayment period is extended to 35 years.

A loan worth RM1 million means they have to pay more than RM5,000 per month from their net income, he said.

FINANCIAL WOES

Dr Ma'amor pointed out the high cost of living would only encourage the use of credit cards, a debt culture that should be eradicated in the first place.

"Make sure the budget remains the same. Don't send the wrong message to the traders. Those with fixed income will suffer further if the prices of goods keep rising.

"For example the rise in onion prices of late is a burden to those with fixed income. Those doing business may not feel the pinch because when the cost price of products go up, they also increase the sales price for the consumers," noted Dr Ma'amor.

The bus ticket price to Singapore was increased to RM95 one way from RM75 during the end of last year, just RM4 less than the promotional low cost airline flights to the republic. The excuse is that it was a holiday period.

He specifically pointed out that the public transportation cost has to be controlled and monitored so that the people are not overly burdened.

Moreover the increase in annual income is not something guaranteed and even if there is an increase it won't exceed five percent of the salary.

WEATHER CONDITION

The rise in the prices of goods cannot be solely blamed on traders and suppliers, said FOMCA representative when met.

"Natural calamities like floods, earth quake and extreme dry spell in many regions of the world are blamed for the shortages of the essentials.

"It is only natural that, when demand exceeds supply the prices are bound to rise due to the limited supply," said Mohd Yusof Abdul Rahman, the communication director for Federation of Malaysian Consumer Associations to Bernama recently.

However, consumers have to choose the necessities carefully when the prices fluctuate.

"The prices of essential goods will stabilise at a new level and when the supply is reinstated the prices come down slowly, if they ever do. Look for alternatives if possible," advised Yusof.

Consumers who are wise in making their choice and in voicing out their grievances can certainly help improve the situation.

Wise consumers will definitely enjoy good life by spending prudently and within their financial capacity, choose goods and services of quality at the right price.
By Hazlinda Hamzah