MALAYSIA - Malaysian people no longer feel that living cost in the country is cheap.
Early this month, the Malaysian government announced a price hike for Ron 95 and diesel fuels against an inflating economy. The domino effect to this is a spike in prices of other household necessities and services.
In addressing the hardest hit by rising costs, RAM Holdings Bhd Group Chief Economist Dr Yeah Kim Leng said that low income groups and wage earners whose salaries do not increase at pace with the rising cost of living will face hardships.
"An increase in household expenditure will have to come from reduced savings or the cutting of non-essential spending such as eating out, travel or leisure activities," he said.
With the national budget a month away from being announced, The Star Online took to the streets to get public opinions on how people are coping with the economic situation.
Nambee Ragavan, 26, a project executive, said that in his line of work, he is expected to travel regularly and the recent price hike had caused him to incur significant expenses.
"My petrol cost is higher but my claims per kilometre have not changed. When I am out, I also tend to have meals outside and of course, that cost more too," he said.
Nambee also points out that property prices have risen drastically.
"My parents were able to buy their first house at 24. My friends in the USA were also able to do the same at 23-24. I am almost 26 now and am nowhere close to buying a house," he said.
Tang Wing Tat, 70, a retiree, said that he has to be more careful of his spending now.