Malaysians plagued by poor purchasing power
By Lee Wei Lian, Yow Hong Chieh and Melissa Chi, The Malaysian Insider
Malaysians who find themselves affording less than their contemporaries overseas have distorted and inefficient markets, lack of competition, low wages and a weak ringgit to thank for their poor purchasing power, which in the case of KL, is only 34 per cent that of New York.
Despite government assurances stating that inflation is under control, Malaysians are becoming increasingly restive over the cost of goods in relation to wages, especially those who are able to compare the corresponding price-to-wage ratios in developed economies.
Malaysians who have experienced working and living abroad often experience sticker shock when they come back and see prices in KL.
“Oh my God, a Tiramisu is RM15!” said Calvin Lee, a Malaysian who has lived in Sydney, Singapore and now London, referring to what cafes in KL are charging for a slice of cake as compared to about GBP5 (RM25) in London.
Aidi Zalman, a consultant who studied in the UK, told The Malaysian Insider that salaries in London could go much further than KL.
He had worked part-time as a waiter in London and noted that a single day’s wages of about GBP50-60 was already enough for him to buy a pair of branded shoes and even a low-end iPod, a concept unthinkable for local waiters.
“GBP100 can feed two apartments of students for a week,” he said. “Here you can spend RM100 and get hardly anything.”
“I hate it when politicians make stupid statements like Malaysia is cheap,” said Edward Seah, an engineer who has previously worked in Singapore and the US. “Prices might seem cheap when you convert it to US dollars yes, but then we should also convert our salaries to US dollars.”
Victor Wong, a Malaysian expat in Sydney, said that Australians get more mileage out of their money.
A report by Swiss bank UBS AG shows KL residents have to work 22 minutes to afford a loaf of bread as compared with 18 minutes in Los Angeles. — chenfurn.com pic
He gave the example of clothes where he said he can get a good quality shirt for about AUD100 but would need to spend about RM200 to get similar quality in KL.
Wong pointed out that even Asian food could be more affordable for those living in Sydney than KL.
“You pay RM15 for a bowl of soup noodles in KL shopping centres but only AUD10 in Sydney shopping centres,” he said.
