KUALA LUMPUR, Feb 14 — The government’s talk of economic transformation and reform has little resonance with the nation’s newest batch of voters who are suffering from the erosion of spending power in the country which they feel has made it a struggle to survive and clouds their future.
Unlike the older generation of voters who were able to easily pay off a house and a car within a few years of starting work, today’s generation of young adult workers find themselves in debt before they even start working and are looking at 20-30 years to pay off a house, if they can even afford one, and as long as nine years to pay off a car.
The country is also grappling with poor purchasing power as reflected by KL’s ranking in the 2011 Prices and Wages report by Swiss bank UBS AG, placing a lowly 49 among major global cities, down from 47 in 2010.
A poll of young working adults by The Malaysian Insider showed that that they were concerned that the difference between wages and the cost of living had reached a critical stage, with many looking at the prospect of either meagre savings or high debt and feeling hard pressed to survive without family assistance.
Among some of the suggested actions the government take were to set minimum wage levels while capping inflation.
Rashaad Ali, 23, who works as a writer for Groupon Malaysia, said that cost of living was of paramount importance since he became a taxpayer.
Biotech graduate Phillip Tay, 27, who works as a marketing executive with a publishing house, feels that many graduates are underpaid, and that ultimately it is government who should decided on basic wage levels.
“Wages have been stagnant for way too long. There should be government enforcement, the government should raise it up,” he said.
“I graduated with a degree in biotechnology. I look at my peers... many of them barely make more money than a SPM leaver... I might as well be selling insurance,” he said. “What the government can do is come up with policies that can help address the issue of stagnant wages, prices are going up but wages aren’t. I’d vote for a government which can look into that.”
“The money is better and the inflation in Malaysia is very high,” she said. “Food, clothing, branded items are all more affordable in Singapore if you earn a Singapore salary.”
Mohd Abdul Wahid Rosmat, 26, a warehouse worker in Sekinchan, Selangor, said he was feeling the effects of the country’s inflation rate keenly.
“Prices will just rise suddenly and sometimes, the price increase doesn’t make sense,” he said. “With our wages not keeping up with prices, the value of our money is shrinking.”
Rachel Tan, 23, who works as an accounts executive at an online advertising company, said young working adults are “stuck”.
“There’s poverty of a different kind,” she said. “There’s a lot more debts at this age... someone my age already has so many loans to repay even before they can own a home, once they get out of university.”
Malacca-born Mohd Fareez Azman, 25, who now lives in Shah Alam, said prices have gone completely out of kilter with salaries.
“Wages are very different from the cost of living,” he said. “Salaries should be in balance with prices, even if it’s not high, it should at least be higher than the cost of living.”
While the government has promised to cut back on subsidies under its reform programmes, some such as Yanti, a 24-year-old cook from Parit 5, Sekinchan, believed that the government needed to keep forking out subsidies and helping the poor, because many cannot cope with ever-increasing prices of daily goods.
Ibrahim Suffian, head of the opinion research firm Merdeka Center, said the government’s rhetoric on economic transformation has little traction with the younger voters.
“Whoever can do better to address the practical needs of the younger voters and communicate this via a wider set of channels will benefit at the polls,” he said.
James Chin, head of the School of Social Sciences at Monash University, Sunway in Petaling Jaya, said the cost of living would be the number one issue in the coming general election which was likely why the government has been giving out assistance such as vouchers and cash grants to low-income households.
He noted however that the public was largely cynical over the efforts and it was not sustainable over the long run.
“The government needs to address the structure of the economy,” he said. “Wages are stagnant and the cost of living has gone up. They need to reform the entire economy.”
Economists have said that inefficiency, lack of competition and an undervalued ringgit are the reasons behind higher prices and the country’s distorted purchasing power for imported goods.
The cost of the two big ticket items — houses and cars — are often prohibitive for even the majority of older workers.
Taken together with the country’s relatively low salary base, the purchasing power of the average worker in KL as calculated by UBS is 60 per cent or more lower than that in Los Angeles or Sydney and only about half that of a worker in Tokyo.
With more than 30 per cent of Malaysians reportedly earning less than RM700 a month, the Najib administration has been mulling the introduction of a minimum wage but no decision has yet been reached as government officials fear it could cause higher unemployment and loss of competitiveness.
Pakatan Rakyat has also said that it is in favour of a minimum wage.
Young voters meanwhile will be scrutinising the efforts of both the ruling party and the federal opposition to restructure the economy.
“For me, I will vote a government that will continue to provide aid, to help us. It’s difficult living when everything has a price,” said Yanti.
Public comments
I just came back from Singapore. I was there for 3 nights. During this time, I kept muttering to my wife that Malaysia under BN is a BIG con job! Why? Well, a fresh graduate Engineer there is paid about SG$2,800-SG3,500. In Malaysia, somewhere between RM2,200-3,000. Here is the difference.1. An IPAD 2 cost SG$600 vs RM2,000 in Malaysi2.
2. LAY'S potatoes chips is SG$3.90 vs RM9.00
3. Honey Baked ham is SG$9.90 vs about RM30 here
I could go on and on. The bottom line is this. Singapore with no resources is in such a state because of good management. The reverse is true in Malaysia yet, the longest serving PM in Mahathir falsely believe he did well. Such level of vanity!
1 bowl of noodles in the hawkers centre is S$2.50 - 3.00 compare to our RM4.50 -5.00 ; dollar to dollar !!!
We are IN COMPARISON. because despite all the so called 'developments' in Malaysia for the last 20-30 years; our currency remained the same, our wages increased by 10%-20%, cost of living increased by 300%-400%.
PM Najib seems know how to bring his family for shopping but don't know how to fix the economic problem. a good e.g. is until today, he has not open his big mouth with regards to Natioanl feed lot scandal.
This is a result of years of mismanagement under a corrupt and incompetent UMNO-BN government. Now the younger generations are paying the price. Things will only get worse, unless we, the voters, vote wisely in GE-13.
Getting aid from the government such as BR1M is just a temporary solution. We need to know the cause of the difficulty. Fix the econmony so that everyone is able to make a better living without aid. Expecting aid all the time will just slow down the society, everyone waiting for another person to come and help.
Msia is a country with all kinds of natural resources; rubber, palm oil, natural gas, crude oil, and so on...can't and unable be balanced budgets for years and years. Inflation keeps higher and higher. Where the money gone! UMNO-putra pocket as usual! Government scandals keep bubbling up to the surface from all kinds of corruption and white elephant projects.
It's a shame if you still be cheated by current government for over half of century. By this time, we should vote them out to fix new economy. Otherwise, the economy just like no way out - dead end! Remember, is only UMNO the one who makes economy impasse!
This is what we have been urging the govt. to do. Do something constructive to improve our lives and livelihood. Stop shouting slogans. We are sick of them. Stop robbing and looting our hard-earned money to unjustly enrich yourselves and your cronies to satisfy your GREED. This is a rich country. We should not even be paying tax but you corrupts are so corrupted and greedy to the core that after 54 years in power, this country is heading towards bankruptcy due to your endless abuses of everything you lay your hands on. GOD SHALL PUNISH ALL OF YOU but until then, we, the PEOPLE will see to it that you pay back all that you have robbed from us.
When cvomes to such issues, our BN government everytime will say everything is UNDER CONTROL. The more I look at all the 1/2 past six ministers, the more I feel want to change their faces. Why don't we take control and change these BN government instead of let them keep on controlling our life? We can choose to make things right for us and our next generations to come. Malaysia under BN will be like Greek in no time as we already see too many scandals in the government. When the time come to Malaysia becomes bankrup, BN and their cronies will continue to keep enjoying their lifes but our next generation will be suffering.
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