PETALING JAYA: The Malaysian economy may be on the upswing, but the poorest in the country have yet to get a taste of the bounty.
Experts are of the view that it might take some time before the impact of economic growth trickles down to the B40 group – the 40% of Malaysians at the bottom of the pile.
Federation of Malaysian Consumer Associations (Fomca) chief executive officer Datuk Paul Selvaraj noted that a poor family would likely use at least 40% of its total income on food compared with 10% to 15% for a middle income family.
“Any price increase will be more acutely felt by a poor family than a middle income family,” he told theSun.
He was commenting on a recent statement by Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail that the economy had expanded by 4.6% as of September, and this growth had been achieved without a sudden increase in the prices of goods and services.
This, she said, was important to ensure that the people’s purchasing power was not affected when the country’s economy expanded.
Selvaraj pointed out that economic data such as the consumer price index (CPI) does not always properly reflect the actual situation for consumers.
“Policy makers should be more careful when making statements (about how the people have benefited from an economic expansion). They should go to the ground to find out what concerns the people,” he said.
Selvaraj said the poor had been unfairly affected because any increase in their salaries was still small compared with the higher amount they have to spend to make ends meet.
“Big expenses such as mortgages take up a big chunk of a person’s salary and they’re not part of the CPI,” he said.
Also not taken into account are other expenditures, such as transport, healthcare and food, he added.
Asian Strategy and Leadership Institute’s (Asli) Tan Sri Ramon Navaratnam said it was difficult to see how the economic expansion would have a positive impact on the cost of living. Navaratnam, who is chairman of Asli’s Centre for Public Polity Studies, pointed out that a small price increase would have a major impact on those with low incomes.
