Main image via Loanstreet
We thought we’d like to join the #10yearchallenge by highlighting some important things that have changed (or not) over the past 10 years in Malaysia. Read on to find out what they are that’s affecting your everyday life.
1. Petrol price increased by 22%
10 years ago, the petrol price used to be RM1.80 for RON95 and RM2.05 for RON97. Today, the country has reverted to the weekly price float again.
The good thing is, the government is capping the petrol price at RM2.20/litre for RON95 and diesel (RM2.18) even when the market price increases.
They’re also going to implement the RON95’s petrol targeted subsidies in mid-2019 for car owners with engine capacity of 1,500cc or less and motorcycle owners with of 125cc or less.
2. Minimum wage increased by RM100 je?
Since 1 January 2019, Malaysia’s minimum wage has increased to RM1,100/month or RM5.29/hour and standardised throughout the country. Previously, the minimum monthly wage in Peninsular Malaysia was RM1,000, whereas in Sabah, Sarawak and Labuan, it was RM920.
There were a lot of mixed reactions. Some employees of the B40 group were happy about it because this means less burden. Some were not - “RM1,100 je?”.
3. We still can't afford property
According to the National Property Information Centre (Napic), the ‘average’ price of a house in Q2 2009 was RM179,205. And, at that time, the unsold units were at 18,538.
Now, affordability has become a major issue. The average price of homes as of Q3 2018 stood at RM383,648. This is higher than the maximum affordable price, which should be RM282,000, given the 2016 median household income of RM5,228 (as suggested by Bank Negara Malaysia).
Due to this mismatch between income growth and house prices, the number of unsold units nationwide have also increased to 30,115.
A local newspaper reported that as part of the ongoing public-private Home Ownership Campaign (HOC) 2019, property developers have agreed to offer at least a 10% discount on all unsold properties. On top of that, house buyers will also be exempted from stamp duties for houses priced between RM300,000 and RM1mil.
Do use Loanstreet’s Home Loan Eligibility & Affordability Calculator to see how much you can afford and also to avoid disappointments.
4. Teh tarik kurang manis , boss!
In 2009, sugar used to be priced at RM1.45/kg. Now, it’s priced at RM2.95/kg. That’s a 103% increase!
On a positive note, increasing the price is not a bad move after all. Apparently, Malaysia has the highest rate of diabetes in Asia as of 2018. It’s reported that there are about 2.5 million adults with diabetes in Malaysia, aged 18 and above. Whoa!
Maybe that’s why the government also decided to impose a sugar tax of 40 sen/litre on sweetened beverages starting April 2019.
Can Malaysia Be Better?
Looking at the 4 points highlighted above, we can conclude that most of them share the same issue - cost of living for Malaysians is rising but their income can’t catch up - there’s a gap. Perhaps there should be policies and measures by the government put in place to make sure that the income is able to justify the rising living costs.
In addition, the government should also look into introducing financial education early on in schools. According to an AKPK study, 28% of adults needed loans to buy essential goods. Now, that’s a REAL problem right there.
By being financially literate, Malaysians can be more money wise and able to manage their cash better.
This article is brought to you by Loanstreet.com.my.
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