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Sunday, June 11, 2017

HOW FINANCIALLY-STRAPPED MALAYSIANS CELEBRATE RAMADHAN

SeaDemon Says

It has been a while that I have actually driven late at night in Kuala Lumpur, a city that city-dwellers claim to have become more and more unaffordable to live in.  So, I took a drive last night just to see how it looks like mid-Ramadhan.  I shun driving through KL towards the end of Ramadhan because there would be a mad rush for season end bargains.  The middle of Ramadhan should be alright for a drive.
I was wrong.  I used to be able to park my car in front of the embassy of Nepal on Jalan Ampang (behind St John’s primary school) and walk across the Klang river for a plate of roti canai on previous years’ Ramadhan night.  However last night, the jam started just after the intersection between Jalan Sultan Ismail and Jalan Ampang as cars tried to get to the Masjid India and Capital Square areas.  Parked cars lined the sides of Jalan Ampang from across Sunway Tower all the way to Jalan Melaka!
A friend who works at a very famous textile mall in the Masjid India area confided that sales this Ramadhan has so far exceeded the total sales for Ramadhan 2016.  And it has only been 15 days since the beginning of Ramadhan with another two weeks to go.
I have not gone to see the sales of Naelofar scarves.  If hundreds of dUCk scarves costing RM800 each could all disappear from the shelf within five minutes, I expect a mad scramble for the Naelofar ones which have gone on sale one week before Ramadhan even started!
What about the Ramadhan buffets?
Ramadhan buffets are generally dearer compared to last year.  I have had the chance to sample some by both invitations and personal visits.  I have not seen one that is not full, be it at one that costs RM65 per head or the one that charges RM218 per head.  And most are not corporate invites as they throng these venues in shorts and t-shirts, and often than not I see long tables of families, not co-workers, enjoying their Ramadhan buffet.  Even university students swamped the RM65 ones, something unthinkable back in the mid-1980s.
At one venue the hotel car park was full that I had to park next to the waste bins near the hotel’s goods delivery area!  I was lucky to have gotten that spot as I see scores of people having to walk from afar after parking their car by the roadside.
So, how oppressed are the Malaysians financially?  Is it true that it used to be better two Prime Ministers ago?
Consumer spending in Malaysia over 10 years (Trading Economics/Department of Statistics Malaysia)
If you look at the graph above on consuer spending in Malaysia over the last ten years, despite claims that RM1 could get you many things back then compared to now, consumer spending in Malaysia has been on the upward trend.  If you look at your social media accounts, even university students can afford to go on a holiday in Bali and Lombok now when the farthest they would go back in the 1990s was a weekend in Port Dickson.  Students in the 1990s could hardly afford a flight to Kota Kinabalu.
Consumer spending increased to RM152 billion in the first quarter of this year from RM150 billion in the last quarter of 2016 and averaged RM101.7 billion from 2005 until the first quarter of 2017.  The lowest consumer spending by Malaysian was in the second quarter of 2005 when it was RM56.8 billion and peaked at RM153.5 billion in the second quarter of 2016 – exactly the period when whining Malaysians complained without facts that the country is on the brink of financial doom.
As a matter of fact according to the Department of Statistics of Malaysia, the median and mean monthly salary and wages paid to employees in 2016 have increased by 6.2 and 6.3 percent respectively compared to 2015.
This is also helped by the fact that sales tax has gone down from the 10 percent sales tax (and 6 percent service tax) that were not fully remitted to the government due to the suspected underdeclaring of sales and profits, to just 6 percent Goods and Services Tax.
Sales Tax in Malaysia (Trading Economics/Malaysian Inland Revenue Department)
Corporate Tax, despite claims that the government has been charging corporations more, has been brought down to just 24 percent in 2016 from 30 percent back in 1997.
Corporate Tax in Malaysia from 1997 to 2016 (Trading Economics/Malaysian Inland Revenue Department)
And the government continues to make life more affordable in especially Kuala Lumpur, the city many big spenders complain is getting expensive to live in.  The Light Rapid Transit system that was originally built especially for the 1998 Commonwealth Games, has now been extended in service to connect Puchong and Putra Heights, while by 17 July 2017 the Mass Rapid Transit Line 1 will connect Sungai Buloh to Kajang directly meeting the KTM Komuter in Sungai Buloh and Kajang, while meeting directly with the LRT at Pasar Seni, and is within walking distance with the KL Monorail at Bukit Bintang.
The LRT will further extend from Bandar Utama to Johan Setia, south of Port Klang, and will be passing Tropicana, Glenmarie, Shah Alam stadium, UiTM, Bukit Raja, Sri Andalas and Bukit Tinggi.  The construction of LRT extension (known as LRT 3) has already commenced.
The MRT Line 2, which has also begun its site clearing phase will be from Sungai Buloh to Putrajaya, passing through Sri Damansara, Kepong, Jinjang, Sentul, Titiwangsa where it will meet with the KL Monorail and LRT Ampang/Seri Petaling lines before going through Kampung Baru, Ampang Park, KLCC East, TRX, Bandar Malaysia, Kuchai, Bandar Tasik Selatan where it meets with the LRT, ERL and KTM Komuter, Serdang, Seri Kembangan, and Cyberjaya.
Meanwhile KTM Komuter will have a service linking its station at Subang Jaya with the Subang Skypark Terminal.
These are all ways initiated by the government to make connectivity better and cost of living lesser for the people of the Klang Valley.  At least, no false promises such as abolishing tolls have been made, such as the one made by the DAP-led state government in 2007 which have not only gone unfulfilled, but also reneged on by introducing not only tolls for Pulau Pinang voters to shoulder, but also having to foot higher parking charges statewide.
Statement by the Pulau Pinang state government promising a tolled highway
So, stop complaining saying things are unbearably expensive because figures show more people can afford to splurge, and stop telling lies in this holy month of Ramadhan, for those who claim to be Muslims or decent, refined and educated human beings.

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