HARDCORE-poor Chinese in Kuala Lumpur are struggling to make a living while the myth prevails that those of the race in Malaysia are all rich.
While absolute poverty is almost eradicated at 0.1% among the Chinese, there are many who earn below the minimum wage in the community.
The Malaysian Insight recently visited Jalan Peel in Cheras and Pudu in the city centre and discovered some of those earning less than RM1,000 a month scavenging among the garbage to survive.
Elderly couple Chong Song Yin and his wife, Yuen Ken have been squatting in Jalan Peel, for 60 years.
The hut they live in is an illegal structure but it is supplied wth water and electricity. They receive RM400 each month from their daughter.
The amount was not enough, they said, as besides utility bills, they had medical bills to pay.
“We are too old to work and have to depend on our child for pocket money. I don’t feel good because I feel I am a burden to her.
“And even though we get RM300 or RM400 monthly, that’s not enough. Things are expensive in Kuala Lumpur and this is not a rural area,” said Chong, who is 82.
He and his 73-year-old wife used to run a stall selling noodles and nasi lemak. But the arrival of Sunway Velocity Mall put an end to the business. They were told by the local authorities to stop selling food near the seven-storey mall, which opened in December 2016, in Cheras.
“So we became jobless. It’s very difficult. I have heart disease while my wife cannot walk long distances due to health issues,” he said.
Representatives of a non-governmental organisation used to visit and provide some aid but Chong said it has been a while since the last visit.
Another Jalan Peel squatter, Tang Poh Mei, said she was earning RM1,500 a month making cookies and rice dumplings only because Chinese New Year was around the corner.
The 43-year old said she earned less at other times of year. She supports a household of five people – her husband, their two young children, and her mother-in-law.
Her husband offers freelance maintenance services and his income is uncertain.
“Our expenses are not that high because our family eats very simply. Some soup, eggs… that’s it,” she said.
Tang is concerned that the government wants to move the family into a People’s Housing Project (PPR) in Puchong, which means she will have to pay more for her children’s transport to school.
“My house gets flooded when it rains, but I am happy to stay here, it’s more convenient for us. I hope I can stay here forever.
“My two kids attend a government-run kindergarten nearby, and I walk them to school.
“If we move to Puchong, the rent, water and electricity bills will increase. We will have to pay more and we can’t afford it,” said Tang.
MAJORITY OF CHINESE ARE LOW-INCOME EARNERS, SAYS ECONOMIST
THE perception that all Chinese in Malaysia are wealthy is wrong as data from Bank Negara and government agencies indicate that the majority are wage-earners in this community, said economist Dr Muhammed Abdul Khalid.
The DM Analytics founder and chief economist said wealth inequality among the Chinese was also highest compared with the Bumiputera and Indians.
“When we talk about inequality or poverty, the gap between the races has actually decreased, compared with forty years ago.
“Many people think the Chinese are rich. But that is not quite right. Yes, some of them are rich, but the majority of Chinese Malaysians are working class.
“The percentage does not differ much from the Bumiputera, who are also working class,” he told The Malaysian Insight.
Muhammed is the author of the bestselling The Colours of Inequality: Ethnicity, Class, Income and Wealth in Malaysia, published in 2014. The book has been translated into Bahasa Malaysia, “Antara Dua Darjat: Agihan Pendapatan di Malaysia”, and published last year.
Muhammed, who holds a doctorate from a leading university in France, said government data showed about eight in 10 Chinese were wage earners.
“Data from the Statistics Department in 2016 showed that 70% of the Chinese were working class, compared with 72% Bumiputera and 83% Indians.
“However, there are more Chinese employers at 8% than Bumiputera and Indian employers, which are both 3%, ” said Muhammed, who was formerly economist at Khazanah Research Institute (KRI) and the Institute for Strategic and International Studies (ISIS)
The income of wage earners was not growing because the owners and employers tended to keep a large portion of the profit for themselves instead of distributing it among the workers, Muhammed said
“Income distribution to workers is still low. From every RM1 that we earn, how much does the government take through taxes; how much does the government earn; how much do the corporations profit?
“Income for workers is still low compared to capitalist countries such as the United States, Britain, and Singapore. In Singapore, the workers’ share of the economy is bigger. Here, not so much,” he said.
Near poverty
As with the other ethnic groups in Malaysia, absolute poverty rates among the Chinese have dropped, to just 0.1%. The rate for Bumiputera is 0.5%, and Indians, 0.1%. The country’s overall poverty rate is 0.4%.
The problem, said Muhammed, was that although there were comparatively few who were impoverished, there were many who were living on the brink of poverty.
“This is the situation Malaysians are in, regardless of race.
“Among the Chinese, half of those who work earn a monthly salary of less than RM2,350. This is a difference of only about RM400 from Malays who work. The majority earn low salaries, not between RM5,000 and RM6,000.”
The Chinese are adjudged wealthy because people make assessments based on what they see, Muhammed added.
“Sometimes, we sit in Bangsar and we see the Chinese and their Mercedes cars. That is an inaccurate picture. There are many more out there who are financially straitened.”
– THE MALAYSIAN INSIGHT
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