Thursday, July 17, 2008

Salary of RM3,000 Is Considered Low Income

With the recent high increase in fuel prices and inflation setting into the life of every single person in the world, Malaysians were not spared either.

The Malaysian government still said that inflation rate in Malaysia is less than 5%. But when you go out for a meal or to buy some simple household stuff, prices have shot up more than 10%. What were they measuring? Maybe the government statistic's was comparison made between today and few months back without them telling us which month or year they were using to say that inflation in Malaysia is well under control.

FOMCA has done a survey to see how a salaried man could survive life in the city with just RM3,000 (approx. US$930) in his pocket. He also needs to feed his one wife and four kids.

By looking at the survey results, one could see that he will have more months left after finishing his RM3,000.

If you are earning RM3,000 per month, you are considered a low income earner now as RM3,000 couldn't get you a lifestyle but just living modestly. Yes, you won't die but no luxuries, no entertainment, no mamak, no extras, no holidays or no pampering. Unless you are single and not thinking of getting married, then RM3,000 is more than enough. That also not on excessive spending.

Those with families, the way to survive nowadays is to cut down on excesses, lavish spending, unnecessary purchases and by budget by deleting non-essentials from the list.

Household monthly in come range (Percentage range of families):-
* <> RM 10,000 (4.9%)
Source: Figures presented by Senator Amirsham A Aziz, Minister in the Prime Minister’s Department, in response to a query in Parliament by Dr Jeyakumar Devaraj, MP for Sungai Siput

From the above statistic, an approximate 57.8% of Malaysians are earning RM3,000 or less. More than half of the nation's population are considered low income earners. My my ........ and the government has time to play around with politics instead of concentrating on improving the economy.

From the last general election, we have heard that some Malaysians voted for the oppositions because the citizens were fed up with the non-sensible stuff that the government was dealing in. The talk was the voters were teaching the government a lesson. Looks like the lesson has not been understood yet.

With the pricing of every single goods and services rising up like mad, soon, the Malaysian citizens will compromise. If the compromise was to have lesser luxuries, that should be alright but I would say that many has compromised to live a life of lower grade.

Kindergarten fees are increasing due to increased expenses. Therefore, parents may forego sending their children to the kindergartens. Maybe one year in kindergarten, at the age of six, will be sufficient for most low income earners. In this way, the low income earners won't die but they have sacrificed their kids' future livelihood.

Cereals and oats are essential for a growing child. Do you think the low income earner will sacrifice this sort of food just to survive? Yes, they will and at the detriment of the child's health this time.

The government has produced the above statistics and knowing that inflation is hitting the nation hard, what are they doing about it?

Reading: Fomca: Help families cope - Star
Reading: Malaysians brace themselves for higher cost of living - Straits Times

Related post - How to Survive With Your Salary?
Tags: RM3,000, Low Income Earner, Low Income, Low Salary, Lifestyle, Inflation, Malaysia, Higher Cost Of Living



Blogger Unknown said...

I earn less than RM1.6k and the recent petrol hike is killing me...

17 July, 2008 14:37  
Blogger Borneo Falcon said...

We are now in our darkest hour.

17 July, 2008 22:21  
Blogger Simon Ho said...

actually the govt downplayed inflation and i feel that the current "reported" rate made by Bank Negara does not provide us with the actual inflation rate

17 July, 2008 23:23  
Anonymous Anonymous said...

we must change our lifestyle.

i told that to my mom and she said
"ask badawi to eat shit"

how can u change lifestyle when we are at the minimum at expenditure adi ~_~

ask the government to stop pocketing money is a better choice

18 July, 2008 00:20  
Anonymous Anonymous said...

zzzz last few years back I was thinking of earning RM 3k per consider as low income I will think of earning RM 3.1k per month ^^v

18 July, 2008 10:09  
Anonymous Anonymous said...

this just proves one thing ..

government heck care bout the ppl and they are just in denial..

Bolehland, apa pun boleh..going down south .. waaaaay south.

hmm i dun see savings haha SO 3k with no savings, financial crisis strike again we'll survive on grass and air? looks like our fren from shah alam don't save much huh.. government support? hehehe oh well .. i rest my case..

just passing by :)

18 July, 2008 12:30  
Blogger Unknown said...

i find the pricing of goods rather high now. just the other day, dinner for 3 for yong tau foo + drinks = rm20!

and in kl, a meal for 5 = rm51! (and no seafood, only noodles + pork + vegetable).

18 July, 2008 17:26  
Blogger Lin said...

with today's food and petrol crisis, we must take a closer look at how we deal with our expenditure.

19 July, 2008 00:28  
Blogger Johnny Ong said...

kok hon - can understand where you are coming from

borneo - dont knock into any petrol station, it will make the petrol more expensive in m'sia

simon - u are hitting the right note

blowfly - true for lots of m'sian people. those with lots of kids will suffer the most but the ministers' kids wont suffer at all

elite - i like yr dream. try to make it a bit bigger ... i'm serious

bolehland - they are easily distracted to do other things and forget easily abt the citizens, even those that voted for them

quachee - my mom and sis took dinner and ordered a plate each of fried rice & vegies with 2 drinks and it cost them rm22

19 July, 2008 00:33  
Anonymous Anonymous said...

Yes, am agreed with you.

Even earning 5K nowadays is just like earning 3K 10 years ago.

So are we moving forward??

23 July, 2008 12:22  
Blogger ch3ryl said...

used to think that earning 3K/month is very good. now, it's just like sesame seed. too small too little.

house loan instalments can easily go up to 1K per month. another 100-200 for maintenance & sinking fund (if staying in condo). driving a local car, my HP instalment is almost 600 per month. add 180 for monthly parking @ d workplace!!!

3K ? where got enough???

23 July, 2008 14:52  
Blogger Josh said...

Summary is, inflation is rising at least 2x faster than our salary...

24 July, 2008 09:39  
Blogger Johnny Ong said...

rosli - we are moving forward indeed but must check our steps are we moving backwards after that

ch3rylism - we just can't spend our money without adding our expenses up to ensure we have spare cash to pay for other needs. time has changed.

josh - its confirmed - 7.7%. this rate is higher than the bank's fixed deposit rate, our provident fund's rate and even insurance company's average rate of return.

25 July, 2008 01:51  
Anonymous Anonymous said...

I am not under this category but i can rest assured you, it is still not enough!! It is never enough for future planing, kids & retirement fund! It may be enough to meet ends meet month by month, but what bout financial planing, retirement fund & starting a family with at least 2 kids and 4 aging parents? AND not forgetting my 6 cats?

That is why i still opt to remain unmarried and don't intend to have any kids yet in the near future. *headache* There goes my dream of being a full time housewife.... In order to sustain, it has to be a 'double income' household.... T_T

13 October, 2008 16:29  
Blogger 고양이 아줌마 (Cat Lady) said...

Cazz, don't let my hubby read your last statement...In order to sustain, it has to be a 'double income' household...

Ever since the global financial tsunami, he's been telling me that I should start earning some money so that we could be a 'double income' household.

It costs him RM1000 now, in petrol and toll, as opposed to RM700 before, to get to work and home. He works in Cyberjaya and we live in Kepong. This cost is not taking into account our going out jalan2 cari makan on weekends. :(

13 October, 2008 22:07  
Blogger 고양이 아줌마 (Cat Lady) said...

sorry, i think i forgot to say RM1000 a month in petrol and toll. not a week, ok?

13 October, 2008 22:08  
Blogger Johnny Ong said...

cazzy - u are thinking too far ahead of time. one step at a time and pls note as the saying goes 'rome was not built over night'. things will fall into place and it starts from a mole hill.

blackie - rm1,000 per month just for petrol is killing. as for the double income, once u are on that track, it will be harder to fall back on a single income as u'll need to sacrifice lots of comfort.

b4 embarking on that double income, ponder over many issues first. weigh the pros and cons and if u look at material items only, definitely a triple income won't be enuf either

14 October, 2008 09:19  
Blogger 고양이 아줌마 (Cat Lady) said...

Err, Johnny, RM1000 in petrol and toll, not just petrol. Had to pass 3 toll plazas and the toll for the Putrajaya Highway very expensive ler.

Thanks for your made sense...

14 October, 2008 11:13  
Blogger Padmanaban said...

High paying jobs are most important in the current economic situation. Most of the companies are developing in India and there are lots of jobs in Bangalore and in various indian cities, which provides high salary.

25 November, 2009 21:00  
Anonymous Anonymous said...

i am getting depressed.need to give money to parents,car loan,education loan,tol,petrol,food.still living with parents.imagine if married.but everyone seems okay from the outside. no stress.still can enjoy a cup of coffee from Starbucks.
its like living a slave's life. really getting depressed because of this.

16 November, 2010 12:35  

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