Protect Our Pockets

Shocking reasons why Malaysians are living beyond their means
By LEE YEN MUN and RAHIMY RAHIM
newsdesk@thestar.com.my

“Protect Our Pockets” is an initiative by The Star to highlight key issues faced by Malaysians in relation to the rising cost of living. To express your support for the resolution, readers can join the online drive for the campaign by going to http://sites.thestar.com.my/protectourpockets/

PETALING JAYA: Shopaholics and poor management of personal finances - these best describe a good number of Malaysian consumers.

On average, 41 are declared bankrupt every day, mostly due to credit card debts, while every weekend, about five million throng the 300-odd shopping complexes in the country.

These habits are among the shocking revelations on why Malaysian consumers cannot cope with the rising cost of living.

Fomca discovered that many of those declared bankrupt due to credit card debts were below 40 years old.

“And they do not care about the consequences,” said Fomca chief executive officer Datuk Paul Selvaraj.

“Many are facing financial difficulties too early in life,” he told the Protect Our Pockets roundtable conference at Menara Star here on Tuesday night.

Selvaraj said Fomca would embark on a financial education push next month with emphasis on teaching the young.

“In one of our surveys, we were shocked that many children did not even know where money came from,” he said, adding that most replied “the ATM (automated teller machine).

“And, they do not believe that their parents have to work to earn money,” Selvaraj added.

Malaysian Association of Shopping and Highrise Complex Management president H.C. Chan said its statistics showed that one in five Malaysians visited a shopping mall on a weekend. “And the country has about 320 shopping complexes,” he pointed out.

The roundtable session is organised by The Star as part of an initiative to highlight key issues faced by Malaysians in the face of the rising cost of living.

Other field experts who form the panel are Malaysian Retailers-Chains Associations secretary-general Valerie Choo, Carrefour marketing communications (Singapore and Malaysia) director Low Ngai Yuen, Performance Management and Delivery Unit (Pemandu) senior manager Phillip See, Pemandu director of National Key Result Areas and National Key Economic Areas D. Ravindran and The Star executive editor Datuk Wong Sai Wan.

Low said while some people shopped, claiming it to be therapeutic, “the truth is, it is not necessarily based on need”.

Ravindran agreed to suggestions that the Education Ministry should take the lead in teaching financial management in schools, but not as a formal subject.

See said handling personal finances was something the young had to go through themselves to gain experience.

On ensuring income levels were competitive, Wong urged the private sector to take the lead as most of the country's manpower was from this sector.

“We should also re-examine our heavy dependency on foreign labour and consider absorbing our senior citizens back into the workforce,” he added.

Some 60% of young consumers were already in debt, Fomca said at a separate function here yesterday.

“And, 72% of young adults have no retirement plans.”



Bid to fight rise in living costs
PETALING JAYA: Smart consumerism education and a call for all Malaysians to commit to live within our means by re-looking their core values these were among the six points in a resolution adopted at The Star's “Protect Our Pockets” roundtable discussion.

The resolution, which will be presented to the Government before Budget 2012 is presented on Oct 7, received a resounding aye' at Menara Star on Tuesday by about 50 members of the public representing various walks of life, including residents' associations and consumer organisations.

Calls were also made on the Government, among others, to increase fair competition in the food supply chain and increase efforts to raise the overall income levels in Malaysia, in tandem with the inflation rate.

While most of the participants concurred that national policies played an inevitable role in one's financial means, more were convinced that the consumer held the key to make the most out of his or her Ringgit.

Eight panellists discussed various issues ranging from financial management to the temperature of air-conditioners during the three-hour discussion moderated by Human Rights lawyer Jonson Chong.

Malaysian Association of Shopping and Highrise Complex Management (PPK) president H.C. Chan pointed out that in China, all public places are mandated by law to set their air-condition temperature at 26C while in Malaysia, member complexes set it between 20C and 23C.

“By reducing it by just one degree could mean a reduction of as much as 10% in our electricity bill,” Chan said.

Two senior officials from the Performance Management and Delivery Unit (Pemandu) its director of National Key Result Areas and National Key Economic Areas D. Ravindran and senior manager Phillip See drew the most attention when they gave insight into how they advise the Government to combat the rising cost of living.

See said the unit was told in August to come up with practical suggestions that the Government could implement to help ease the people's burden.

The other members of the panel were Federation of Malaysian Consumers Associations (Fomca) chief executive officer Datuk Paul Selvaraj, Malaysian Retailers-Chains Associations (MRCA) secretary-general Valerie Choo, Carrefour marketing communications (Singapore and Malaysia) director Low Ngai Yuen, and The Star's executive editor Datuk Wong Sai Wan.

At the end of the evening, the panellists drew up a six-point resolution which received overwhelming support from the audience.

They then led the audience in signing their pledge to the resolution.

> “Protect Our Pockets” is an initiative by The Star to highlight key issues faced by Malaysians in relation to the rising cost of living.

To express your support for the resolution, readers can join the online drive for the campaign by going to http://sites.thestar.com.my/protectourpockets/

The Star
Senior citizens want monetary aid

PETALING JAYA: Senior citizens are hoping for monetary aid to cope with the rising cost of living, especially food.

“Everything is so expensive now. A pau used to cost only RM0.20 before,” said Chin Wah San, 74,

He said it would help if the government could give retirees like him monetary assistance.

Chin works at his daughter’s you cha kueh stall and earns about RM600 a month.

“No one would hire an old man like me,” added the former general worker who used to work in construction.

Another retiree who wanted to be identified only as Wong hoped the government would give the elderly discounts at government hospitals.

The 66-year-old was admitted to a government hospital earlier in the year for a serious ankle sprain. She was charged RM700 for four nights’ stay and treatment.

Wong acknowledged that while RM700 was relatively inexpensive, it was a lot of money for someone with no fixed income.

“I don’t receive a pension so I have to save every sen,” she said, adding that her children had to help her out with living expenses.

“I appreciate their help but I am mindful they have their own families to feed,” she said.

Society of Active Generation of Elders (Sage) president Chin Sek Ham said controlling the price of goods is a better option than increasing salaries or pensions.

He also hoped the government would increase the fixed deposit rates in banks for the elderly.

“The current rate is too low,” he said.

Engineer A. Vijay, 32, wants the government to extend medical benefits given to civil servants to everyone aged 60 and above.

“It is difficult for older people to get medical insurance,” he said.