Rising prices a heavy burden

By M.VEERA PANDIYAN

The cost of goods and services continue to creep upwards, affecting all Malaysians, with those in the lower income bracket bearing the brunt.

Two years ago, they were the happiest group of people in the country. One million civil servants got pay increases ranging from 7.5% to 35%.

And their cost of living allowances was also doubled.

The most blissful lot were police and armed forces personnel as they were given 20% extra, effectively increasing their salaries by between 9% and 42%, depending on rank.

The revision, made two years after the last in 2005, cost taxpayers a whopping RM8bil extra, but then Prime Minister Datuk Seri (now Tun) Abdullah Ahmad Badawi justified it, citing several factors.

Among them were high Gross Domestic Product growth rate (5.6%), the effect of fuel prices on lower income groups, high trade volume (RM1tril), low inflation, low unemployment and positive trends at Bursa Malaysia.

The real reason, of course, was the impending general election.

Held eight months later, it proved that even such expensive sweeteners were not enough to secure votes that once used to be so dependable.

In return for better pay, Abdullah urged civil servants to stay clear of corruption, reduce bureaucracy and work harder to improve the public delivery system.

He should have perhaps also advised them to be prudent. Today, some 450,000 are reportedly heavily in debt, with many owing loan sharks.

Cuepacs secretary-general Ahmad Shah Mohd Zin was quoted by Bernama last week as saying that these civil servants took home less than 40% of their monthly salaries, a breach of General Orders, warranting disciplinary action.

With most of their pay deducted for housing and car loans, renovations and such, they have no other choice but to work part-time as taxi drivers, petty traders, multi-level marketing agents and security guards to make ends meet.

These government staff, he said, may be “vulnerable to corruption”, adding that although the Govern-ment had allowed them to work part-time, it was not enough as the high cost of living, especially in urban areas, left them constantly in debt.

This may indeed be true for workers in the lower grades of support staff and to a certain extent, those at basic officer levels.

But surely it cannot be the same for those who are in middle and top management whose spouses, in most cases, are also working?

If these people are in debt, it can only be due to poor financial management or living a lifestyle beyond their means.

But, generally, it is undeniable that the prices of goods and services are continuing to creep upwards, affecting all, and those in the lower income bracket bear the most hardship.

There were marked increases in the prices of food – from hawker fare to dishes served in restaurants – when the price of petrol shot to a record level of RM2.70 last year.

The pump price dropped to RM1.90 with the fall in oil prices in December last year, but nothing has become cheaper for the Malaysian consumer.

Besides the poorest category of civil servants, those in the private sector in industries hardest hit by the global slowdown are feeling the pinch most.

With employers justifying cutbacks in overtime and implementing fewer working days they should be lucky to keep their jobs, let alone think about pay rises.

The cost of living has definitely gone up in most towns and cities with most significant rises felt in Kuala Lumpur, Johor Baru and George Town.

A recent survey by Employment Conditions Abroad Ltd on 50 expensive Asian cities ranked KL at number 38, Johor Baru at 40, and George Town at 42.

On Tuesday, Prime Minister Datuk Seri Najib Tun Razak announced a major revamp of investment guidelines and scrapped a range of outdated restrictions in a bold move to boost both foreign and domestic investment.

The new policy, designed to meet the need of global investors in a contracting economy and provide a more meaningful bumiputra participation in the equity sector, has been welcomed by the business community.

But how about the majority of Malaysians who cannot even think about savings at the end of each month, never mind investing in stocks and shares?

Their anxieties revolve around simple needs – ability to earn a living, have a roof over their heads and afford basic necessities.

The Government has to do more to make their lives easier by bringing down prices of essential goods to the levels before the fuel price rise. Or at the very least, prevent these from rising higher.

It must exercise effective control throughout the process, from ensuring fair trade practices, reducing red tape and avenues for corruption at import stages to monitoring prices at wholesaler, distributor and retailer levels.

While profits drive businesses, profiteering should not be at the expense of the not-so-rich consumers.

They will certainly welcome a comprehensive slew of measures to ensure that they can get access to decent housing at bearable cost and protect them from unfair prices, including public transport fares.