Learning to cope in the new economy
Malaysians are resilient. With good planning and wise choices, they can do well in this fast-changing world.
WE could stretch one ringgit quite a bit 50 years ago. Times are different now.
When we were children in the 1960s, our desires were as modest as our upbringing. We went to school, did our homework and played football, badminton, sepak takraw and other games with the neighbourhood kids. We climbed trees, fell, scraped our knees, and then recklessly went back for more of the same.
We did not feel the pain of our struggles because we asked for nothing more than the basic essentials.
Life was so simple then. We relished the sweetness of the colourful ais bola (shaved ice ball). And a big treat was a bowl of noodle soup at the nearby coffee shop, or watching a movie in a cinema.
Rags-to-riches life stories were rare. We were of the working-class variety. Most Malaysians had regular jobs. We took buses everywhere, traded stories with our neighbours over the fence, enjoyed homecooked meals, listened to our favourite songs on the radio, or watched prime-time shows on black-and-white television sets.
For a relatively young country like Malaysia, urbanisation is a fact of life. And it comes with a hefty price tag.
For middle-class families in the 1970s, a household income of just under RM1,000 was fairly comfortable. And by working on a manageable budget, we could save for a car, a house and the children’s education.
Our present generation has grown up amid high economic growth. There’s a new cultural elite – the aspirational class – on the rise.
Indeed, our standard of living has flourished in tandem with Malaysia’s progress. Lifestyle changes and the millennials’ need for instant gratification must be taken into account in managing our expenditure.
Society today, for the large part, is governed and influenced by a new perception of reality as bloggers and social media influencers tell us what we should wear, what we should eat, how to keep abreast of breaking trends, and where we should go. These people are not necessarily wealthy, but they shape our opinions on ways to spend money.
They are driven primarily by an aspiration to be more – and have more. This societal pressure is a marketer’s dream. Suddenly, everybody wants to travel to exotic islands, splurge on fine dining, and invest in the latest gadgets, shoes, clothes, and cars. It’s almost as if everyone is chasing a higher cost of living.
I would like to share some insights I gained during my informal breakfast sessions in coffee shops in and around the city. I encountered Malaysians from different economic backgrounds, and all of them had something to say about how the escalating cost of living affected them.
Perhaps for political mileage, some irresponsible parties have claimed that the Goods and Services Tax (GST) is the chief culprit behind the spiralling costs of basic necessities.
However, the majority of the people I spoke with did not blame the GST, which they maintained is a fair and transparent tax.
Let’s consider the facts. It’s not likely that the elimination of GST will see prices of essentials revert to the pre-GST days. This year, GST is expected to supplement the Government’s coffers by more than RM40bil.
The GST revenue has provided the Government with funds to compensate for the slump in global oil prices. It has also enabled the government to implement programmes for education, healthcare and infrastructure to achieve sustainable economic growth.
A young lady I spoke with during one of the breakfast sessions was somewhat relieved that the Government is considering raising the minimum wage. She’s from another state and still manages to send 10% of her monthly salary to her parents by fastidiously keeping a close watch on her spending.
Others, especially the senior citizens, noted that the cost of public transportation had to be contained to encourage more users as this will save on car maintenance, petrol, parking and toll charges, and ease traffic congestion.
Another group of people I spoke with discussed how vendors were quick to exploit certain situations to raise the prices of goods and services. However, they claimed that there was no decrease in prices when the cost of ingredients were reduced or when the exchange rates improved.
Of course, there are exceptions. I met a Chinese mixed rice vendor in a coffee shop who actually reduced the base price of her food to help customers cope with the rising cost of living. The reduced price boosted her business tremendously. She is happy with the outcome, and so are her customers.
I listened to all of them attentively and I learned a lot. The resilience of Malaysians and how we make adjustments to our changing situation is truly admirable.
Technology, currency fluctuations and a highly competitive environment have transformed our lives. Our basic necessities now include mobile phones, security, cars for every member of the family, health and well-being, and higher education.
We cannot stop economic development. It’s the same situation in other developing countries. The fact that our economy is on the rebound bodes well for Malaysians.
The ringgit has strengthened in the past few months, due in no small measure to fresh investments and exports.
Many blamed the government when the ringgit depreciated. The ringgit has strengthened signifi- cantly today. What do the critics have to say now? We should not entertain bitter critics who speculate irresponsibly. We must focus on the positive outlook.
The state of play is now different. As the Government implements measures to reorganise, reform and adapt to the changing times, our economic trajectory must be maintained to close the gap between the haves and the have-nots.
The simple truth is we have a choice. We either live within our means, or we must work harder to achieve and afford more.
Today’s me-too generation, especially the youth, live for the moment. There are just so many more things to own today. We are bombarded daily with messages telling us what we should want, rather than what we need.
If you can afford it, by all means, spend on designer clothes, recreational activities, holidays abroad, entertainment and fine cuisine – if it’s something you really desire.
Success must not be weighed by what you accumulate. Life is what you make of it. Work hard and reward yourself, but always plan for the future.
The world is changing at a faster pace than we can keep up. In this dynamic environment, we must remain grounded. Be humble and sincere, and always remember where you’ve come from.
I believe this quote encapsulates how we can make things better: “We may not always have it all together, but together, we can have it all.”