Malaysia today is no longer as beautiful as the days before. Today, Malaysians are seen to be more stressed from a financial point of view and this problem is seen to be getting worse day by day.
The T20 group may not be able to imagine the problems faced by most Malaysians because they may not need to:-
1. Worried about being evicted from a rental house
2. Eliminate their baby's cries with condensed milk mixed with water
3. Become an online merchant because the source of income is not enough
What is even sadder is that 266 Malaysians have committed suicide as of November 2020 due to debt, job loss and family problems.
This means that on average, 30 Malaysians have dared to take their lives in a month since the PKP was implemented!
The T20s may find it difficult to understand the burdens faced by the B40s and M40s because on average they see a doctor, due to depression due to not being able to travel and shop at luxury stores along One New Change, Carnaby and West One.
In fact, it is not difficult to guess the cause of this problem.
Among the main factors are the slowdown in the domestic economy since 2018 and the withdrawal of foreign investment funds from Malaysia amounting to RM25 billion during January 2020 to October 2020.
The endless internal political turmoil between parties and political leaders who are seen to be more concerned with their ‘political survival’ than the rice cooker and the future of Malaysians.
Unemployment in Malaysia rose to 772,900 people at a rate of 4.8 percent in December 2020 according to the Department of Statistics Malaysia.
Unfortunately, the ratio of employment to population indicating the economic ability to create employment remained at 65.1%.
And now, we have yet to win from the COVID-19 health crisis even though the YDPA has declared a state of emergency starting 12 January 2020 and will end on 1 August 2021.
The M40 group is seen as a victim who is stuck like a 'sandwich' because they cannot afford to receive financial assistance funds like the B40 group.
At the same time, they are not as rich and live luxuriously as the T20.
The practice of doing two jobs or ‘side hustle’ now seems to have become an obligation and no longer an option for the M40 group.
Many do not know the importance of the M40 group in the social and economic system of a country.
The M40s are the largest taxpayers and daily consumers of products and they are the middlemen who manage B40 employees for T20 -owned companies!
1. The Cost of Living Rises
It is common knowledge that the cost of living debate in Malaysia has been hotly debated before the global health and financial crisis again.
Household purchasing power has declined which has led to an increase in the cost of living burden of Malaysians, especially the B40 and M40 groups.
"Did you know, the B40s allocate 17.3% of their salary to food and beverages"
As of 2019, household debt is at a high level of 82.7% of GDP.
The Poverty Line Income (PGK) of Sabahans is the highest with 19.5% higher than Putrajaya and Selangor.
A review of the PGK in 2019 shows that the current cost of living requirement is RM2,208 and no longer RM980 with the emphasis on optimal food intake and basic non -food needs of better quality.
This means that as a Malaysian, you need at least RM2,200 to live.
This figure is very inconsistent with the cumulative minimum wage rate received by Malaysians.
2. Wage Rate Contraction
Following the significant contraction in Malaysia's economic growth rate in the second quarter of 2020, the World Bank has lowered its forecast for Malaysia's economic growth for 2021 to -4.9% from -3.1%.
Malaysia's inflation rate in 2020 has entered the figure of -1.2% and the effects of this deflation are: -
Meanwhile, in 2018, the ratio of workers' compensation (CE) to Gross Domestic Product (GDP) in the country is still low compared to developed countries, which is 35.7%.
Not a few Malaysians are now ‘underemployed’ and face shorter working hours and reduced wages which has resulted in a thinning household purchasing power.
The fate of graduates of local institutions of higher learning is also still not defended.
It is very sad when many graduates have to reap whatever job is available in the market even though the monthly salary offered is RM1,200 - RM1,500 per month.
The latest data from the Department of Statistics Malaysia shows that the unemployment rate for Malaysians is 4.9% in January 2021.
77.7% of Malaysians are workers, 15.7% are self -employed, 3.5% are unpaid family workers and the remaining 3% are employers.
The majority of graduates entering the market in 2020 receive an estimated monthly salary of between RM1,001 to RM1,500 compared to the average of RM2,001 to RM2,500 recorded in 2019.
Malaysians should enjoy higher salaries and it becomes a problem when the starting salary of graduates does not increase even after a period of 10 to 20 years.
Malaysians, especially the B40 and M40 groups, have long been miserable and frustrated with the contraction in wage rates.
Perhaps, the rising cost of living can be forgiven for a while, but it is difficult for Malaysians to forgive the country's leaders who are seen as failing to resolve this national issue.
As a result, national leaders, professionals and intellectuals are urged to act immediately with long -term holistic solutions.
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BUSINESS & MONEY
