2018: Go back to basics, be prudent when spending, says don

Economist says Malaysians will have to make adjustments in their lifestyles this year.

PETALING JAYA: An economist has advised Malaysians to go back to basics this year to cut costs and save money.

Sunway University Business School Economics Professor Yeah Kim Leng said even though the economy will not be as bad as predicted, it will be slightly slower than 2017.

Due to that, he said it was time for Malaysians to change their lifestyles to cope with the rising cost of living.

The first is to eat home-cooked food.

Yeah says eating out was relatively expensive causing most people to overspend.

“Those working can pack food from home. This will cut costs for the family or for couples.

“It is also killing two birds with one stone. It is healthier and cheaper,” he told FMT.

The second area where Malaysians spend most was on transportation.

He asked Malaysians to use public transport or do carpooling to save costs.

Those who want to save money should change to smaller cars or use motorcycles, he advised.

“If it is convenient, they can either cycle or walk to work.”

Yeah added that by practising a healthier lifestyle, people would fork out a lot less on medical bills.

He said the additional money could be used for children’s education or to invest wisely in unit trusts.

He suggested that people buy Permodalan Nasional Berhad (PNB) unit trusts as these were relatively safer and gave more returns than a fixed deposit.

Another option for Malaysians, he said, was to have a passive income.

For instance, he said Malaysians could take part in e-commerce —transactions to promote, sell and buy online.

Other ways, he said, would be to take part in shared economy such as Airbnb, e-hailing rides like Uber and Grab.

“This year, it is all about going back to basics and taking part in a shared economy,” he added. -FMT