JOHN Raj commutes daily from his home in Sepang, Selangor, to Kuala Lumpur for work.
“A one-way trip is about 50km. My truck’s fuel tank capacity is about 80 litres. At one point, I was paying some RM500 for a full tank when diesel prices hit more than RM6.
“While the price has gone down now, who knows when it will spike again as long as the conflict continues? Maybe I have to let my truck go for long-term stability,” laments the 45-year-old.
John is among many everyday Malaysians feeling the pinch at the pump. His solution, while arguably rash, reflects a growing awareness of the need to reassess spending amid global economic uncertainty.
For some small businesses, the uncertainty cuts even deeper. Rising fuel and transport costs are squeezing already thin margins, leaving owners questioning how long they can absorb the increases before passing them on to customers, or whether they can sustain their operations at all. A few admit they are unsure what their businesses will look like in the months ahead if costs continue to climb.
And as the ripple effects extend beyond fuel, some small businesses are bracing for a higher-cost environment, with price pressures passed along the supply chain.
Among householders, several interviewees say they are setting aside more savings and switching to cheaper products, among other adjustments.
Therein lies the question: What should households and small businesses do to brace against these indirect shocks?
“There’s a tendency to over-attribute what households can do. And I want to be honest about that. This is not a problem that households can fix,” says South-East Asian Futures Initiative Centre senior analyst Dr Mikhail Rosli.
Concurring, Centre for Market Education chief executive officer Carmelo Ferlito adds that consumer behavioural changes can help, but we should not exaggerate what they can achieve.
Still recovering
Though the government has maintained the Budi95 petrol subsidy at a quota of 200 litres per person, some Malaysians are still struggling with the increased fuel prices.
Pahang-based construction and telecommunications company owner Mohd Yunus Yusof says the subsidised fuel quota is insufficient for businesses such as his, whose operations depend on frequent travel.
“We are contractors. Our work is not confined to one location.
“For example, I live in Kuantan and currently have a project in Rompin. I travel there at least three times a week. One trip costs me about RM80 in fuel, so three trips amount to RM240.
“We also have another project in Temerloh. Just imagine the fuel costs involved,” says the 80-year-old.
Mohd Yunus says his company has not fully recovered from 2020’s Covid-19 pandemic and is still repaying loans taken to survive the downturn then.
“Previously, we did not need loans. Now, we are burdened by repayments.
“It feels like we are neither fully alive nor dead. We are simply struggling to survive.”
Small renovation company owner Ahmad Fauzi Rahman, 51, paints a similar picture.
Before the pandemic, his company focused primarily on renovation projects worth tens or even hundreds of thousands of ringgit, but now even small maintenance jobs matter.
“A few years ago, if someone offered me a RM5,000 drain construction job, I probably would not have considered it because our focus was renovation projects worth RM50,000 to RM200,000.
“Now, even a RM3,000 or RM4,000 job matters.”
At the same time, customers are postponing renovation plans after seeing how much costs have increased.
“The reality is that contractors are also shocked.
“Cement prices have gone up. Sand, bricks, steel prices have increased. Electrical wiring and plumbing materials cost more.
“Even simple items like paint, screws, and adhesives are significantly more expensive than before,” says Ahmad.
For households, the concerns are no less immediate.
Sales executive Mona Rahim, 31, says she worries most about fuel prices because her job requires frequent travel.
“I am worried mostly about the petrol impact because I have to travel a lot for work.”
With a toddler at home, she is also concerned about the rising costs of essentials.
“Diapers and milk formula, honestly,” she says, when asked which products worry her most.
“I already switched to fresh milk for my toddler, just in case,” she adds.
Meanwhile, 42-year-old Ng Huei Xen says he has already noticed food prices increasing.
“What can we do? Most of the time we just need to tough it out and move on in our lives like normal,” he says.
Not panic, but prudence
Experts say while ordinary Malaysians cannot control global conflicts or supply chains, they can still take some practical steps to reduce the impact on their household finances.
One is to be prudent, which includes cutting unnecessary travel and spending as well as diversifying shopping choices.
Some Malaysians are already making such adjustments.
Mona says she has started choosing cheaper products and switching to local brands where possible.
“Mostly switching to local products for my beauty products,” she says.
Others are trying to build whatever financial buffer they can.
Hwang Huongyi, 33, says he is continuing to save and invest while keeping a closer eye on spending.
“It is good and practical advice as I monitor my usage to ensure less waste and less unnecessary spending, as the cost of living is suffocating as it is,” he says.
Many, however, feel that individual adjustments can only go so far.
Ng, for one, feels there is a limit to how much consumers can be expected to adapt.
“It’s valid advice, but it’s not a solution.
“It only lessens the symptoms, but the rot is still there,” he says.
Media in Arms is a media collaboration comprising five mainstream media outlets: Chinese newspaper Sin Chew Daily, Malay daily Sinar Harian, local news broadcaster Astro Awani, Tamil newspaper Malaysia Nanban and The Star – which formed this initiative in February 2022 to share resources and collaborate on diversified news content.
