Small towns no buffer against rising cost of living

Milk powder and other baby essentials are costlier now because of the GST and shrinking ringgit. – The Malaysian Insider pic by Wong Tuck Keong, October 11, 2015.

Living in a smaller urban centre, such as Ipoh, offers no buffer against the effects of inflation and the economic downturn, as residents find costs have increased as much as 30% in the past year.

Families with young children and newborns are feeling the pinch of the sharp increase in price of nappies, milk powder and other necessities since the goods and service tax (GST) was implemented in April this year and lately, the depreciating ringgit.

Apart from tightening belts, the situation has forced some to make difficult but necessary decisions for the wellbeing of their families.

For pharmacist, Harpreet Kaur, 36, it means returning to work earlier than she had planned after delivering her second daughter last month.

“I had hoped to spend more time with my baby before getting back to work but the cost of living has risen to the point that we cannot rely on my husband’s income alone.

“Since we are moving back to Ipoh from Sitiawan this year, my family has additional costs in terms of getting our own house and new furnishings,” she said.

Harpreet said compared with a year ago, rental of houses in Ipoh has increased by about 30%.

“Rental for a home in Ipoh that was going for RM1,000 a year ago is now between RM1,200 and RM1,500.

“I notice the difference because I was renting in Ipoh back then.”

The family are moving back to Ipoh this year after a year in Sitiawan, where she had accepted contractual employment.

“The decision to move is also due to the fact that rent in Sitiawan is more expensive than in Ipoh, the difference is up to RM500.”

The housing market in the coastal town boomed when expats moved in after multinational companies, such as Brazilian iron ore mining giant, Vale International (SA) Ltd, set up a pelletising plant and stockyard in Manjung.

In terms of cost cutting, Harpreet has had to take some drastic measures, including reducing her medical insurance policy coverage to avoid falling behind on payments.

“It’s heart-breaking not to be able to provide extensive insurance coverage for my children but we have to make hard decisions and compensate as best as we can.”

Housewife, Ashley Ooi, 29, agrees that getting medical cards for children is essential these days, to cover unexpected medical fees.

“It’s one of the things I had planned for my son before giving birth seven months ago.

“Still, there has been a sharp increase in prices of other important items, such as Pampers, baby powder and even groceries.”

She said the price of baby milk formula increased by threefold just last year.

“Even nappies, I used to be able to get one pack for RM29 but now it can cost up to RM40.”

In an attempt to be frugal, Ooi now scouts for cheaper resources from second-hand shops for certain baby and children’s items.

“I also buy nappies, milk powder and home groceries in bulk to save more money.

“Buying online and waiting for sales is another way. I collect vouchers and points to redeem which also helps us to reduce spending.”

The mother of four added that saving money was more challenging now, especially as kindergarten fees increased on an annual basis.

“I have three children between two and six years old and have to start saving from now to cope as the years pass.

“Apart from schooling, I also send them for piano, ukulele and computer lessons which they love. 

“Cancelling these would mean seeing their sad faces and any parent would rather do their best to give their children the best.”

Event manager, Adeline Khan started her own vegetable patch after noticing climbing prices in her daily marketing.

“We still buy from the market but tending to my patch of chillies, ulam and ginger helps us to save a little.

“I also tend to shop on weekdays for groceries as prices tend to be higher on weekends.”

The 35-year-old also resorts to online shopping for better deals on clothing and baby items.

“I am constantly scouting and comparing prices before I make any purchases.

“Many shopkeepers used to blame it on GST, but now the ringgit slump has been another excuse to drive up prices

“Coming from a humble background, my family are used to budgeting for most things, but these days, despite being thrifty, we have noticed a sharp increase overall.”

- TMI