PETALING JAYA: Consumers should plan their expenses and manage funds carefully if they are to survive the wave of increases to the cost of living next year.
"Consumers should do extra work to manage their finances properly. They have to practice increased financial responsibility in balancing big expenses such as credit card bills, housing loans and car loans.
"They should also do price comparisons and the relevant homework to get the best value for their money," said Federation of Malaysian Consumers Association (Fomca) secretary-general Datuk Paul Selvaraj.
He admitted that the year ahead will be challenging to the budget and finances of many consumers, especially those in urban areas.
The costs of many essential utilities, such as toll rates and electricity tariff are set to go up from January next year.
On Dec 2, Energy, Green Technology and Water Minister Datuk Dr Maximus Ongkili said electricity tariff will be increased by an average of 14.89% for Peninsular Malaysia, and 17% for Sabah and Labuan from next year.
On Tuesday, Works Minister Datuk Fadillah Yusof was reported as saying that toll rates for 15 highways, including the NPE, SPRINT, MEX, and LDP would go up between 50 sen and RM2 on Jan 1.
This follows in the heels of the reduction or removal of petrol and sugar subsidies and increases in the price of cigarettes this year.
On the electricity tariff hike, Selvaraj said consumers should buy energy-saving devices and monitor their usage to prevent unnecessary wastage.
"Consumers should practice electricity-saving measures like switching off lights or unplugging unused devices. Some devices consume electricity even when they are off but still plugged in," said Selvaraj.
Similar views were shared by Islamic Consumer Association of Malaysia (PPIM) chief activist Datuk Nadzim Johan Johar, who advised consumers to scrutinise their budgets to see where reductions in expenses can be made.
"They can try to reduce their monthly budget by 20% to 25%. For example if they go by car, they can plan ahead to optimise the use of the car and minimize costs. Families can also plan their diet to minimise wastage and optimise resources. Coffee at a chain outlet can cost RM10, but coffee at home can be a lot cheaper," said Nadzim.
He added that consumers could also plan their lives to minimise expenditure by quitting unhealthy habits that cost money, such as smoking.
"People should also be productive with their time. They can do things such as hydroponic farming or give tuition after work hours. Find second part-time jobs that do not interfere with your work," added Nadzim.
Cost-saving and financial management were proposed by Puteri Umno chief Mas Ermieyati Samsudin, who said the first step would be to exercise thriftiness, such as slashing their monthly bills.
"The government and companies must take proactive steps to reduce spending and implement programmes to boost awareness on thriftiness," she added.
The Masjid Tanah MP suggested that people and businesses use green technology to save on power and reduce wastage by recycling.
Mas Ermieyati said another cost-saving measure would be for the government to monitor public-interest monopoly companies to ensure that they did not garner excessive profits at the expense of the people. She proposed that the government enforce antitrust laws to protect the public from monopolies.
Parti Sosialis Malaysia secretary-general S. Arutchelvan called on the people to fight against the cutting of subsidies, and to fight for more wages for the low-income groups.
"Consumers have to stand up and fight. What is sad is that most consumer associations call on the public to tighten their belt. Consumers in Malaysia are not a strong organised force like in other countries, as these groups can pressure companies not to impose price hikes," said Arutchelvan.
He added that consumers have to get together and be more organised if they are to fight against increases and campaign for a fair minimum wage.
"At the end of the day, the economy will do well if the people have more purchasing power. Increasing prices without increasing wages will not solve economic problems," said Arutchelvan.
Limited time offer:
Just RM5 per month.
