KUALA LUMPUR: The National Consumer Advisory Council (MPPN) is formulating ways to resolve issues concerning spending power as well as the economy which is affecting the urban Bottom 40 (B40) group.
MPPN chairman, Mohd Azmi Abdul Hamid, said the outcome will be presented to Domestic Trade and Consumer Affairs Minister, Datuk Seri Saifuddin Nasution Ismail.
“We are discussing ways on finding a solution to the issue which will be presented to the minister.
“The Cabinet Committee on Cost of Living has to study the report on B40 households are facing a serious issue with regards to the economy,” he said in a statement.
He was referring to a report by the Khazanah Research Institute, which said B40 households earning under RM2,000 monthly are facing severe economic issues.
It was reported that on average, B40 families, after deducting monthly household expenses, are left with only RM76. This leaves them with no room to save for emergencies or even for the future.
Mohd Azmi suggested that consumers and the public at large should be educated on smart consumerism.
“Wastage, spending beyond one’s means, buying unnecessary items, prioritising a trendy lifestyle, being influenced by brands, excessive social activities, exploiting natural resources without being checked, food security - these are among the issues which influence the B40 group’s quality of life,” he said.
Mohd Azmi said strengthening the domestic economy is key to balancing the uncertainty of the global market.
“The market economy system practiced by Malaysia could expose the country to the uncertain global economic trend,” he said.
Mohd Azmi said the narrative of the Khazanah report was worrying, given that the B40 are at risk of being trapped in a cycle of poverty if their cost of living issues aren’t tackled effectively.
“The urban B40 group will be more susceptible to the poverty cycle if cost of living in cities continue to escalate,” he said.
Commenting on the two-fold increase in the income gap between the wealthy and poor, Mohd Azmi said the rise in cost of living is a key factor.
He did not deny that the price of essential goods such as food, transportation, housing, healthcare and education, which has seen a marked increase over the last few years, is not just due to the effects from the global economy.
“There are also domestic factors related to the tax regime, value of the ringgit as well as dependence on imports,” he said.
Mohd Azmi stressed that the widening income gap will have unhealthy social implications.
“This situation will not be good for quality of life especially among the B40 and in the long run, will affect the people’s well-being,” he said.
