The Malaysian Insight

LOWERING the prices of food, housing and healthcare must be the main aim of Pakatan Harapan’s Shared Prosperity Vision 2030, said a major consumer pressure group.

The Federation of Malaysian Consumers’ Associations (Fomca) said addressing these three concerns will ensure the government’s new economic agenda has a real impact on the lives of middle- and working-class Malaysians.

Fomca secretary-general Paul Selvaraj said this ahead of the weekend launch of the shared prosperity vision, which outlines PH’s plan for the next 10 years to reduce wealth inequality.

High food and house prices, and an inefficient public healthcare system are what B40 Malaysians have to deal with on a daily basis, leading many to feel left out from the wealth generated in the country, he said.

The government must also put more money into or focus on improving public transport services in suburban and rural areas, as this will bring down the cost of living since people need not buy vehicles.

A comprehensive social safety net must be instituted for the country’s poor, who comprise 20% of the population, so that everyone can have a minimum quality of living,” Selvaraj told The Malaysian Insight.

“In order for low-income people to really feel the prosperity, you must institute these measures. Otherwise, the agenda will just be about lofty policies and rhetoric.

“The biggest issue with the economy of consumers is the increase in the cost of living, while their wages remain stagnant.

“This is the challenge for young families and job-seekers, especially,” he said of the types of consumers who will be most vulnerable to the impacts on the economy in the next decade.

Prime Minister Dr Mahathir Mohamad is scheduled to reveal a detailed road map of the policies and strategies for the vision on Saturday.

It was reported that the agenda’s primary focus is to reduce income disparities between regions, and between the rich and working class.

The vision will also be the core pillar of the five-year 12th and 13th Malaysia Plans, and elements of it will be in Budget 2020.

Lowering food, house prices

To bring down the cost of both fresh and prepared food, Selvaraj proposed that the government liberalise the entire supply chain of these goods.

This includes breaking monopolies and stopping price-gouging among importers, wholesalers and retailers, he said.

“We also have to restructure the agriculture sector, from planting too many industrial crops, such as rubber and oil palm, to growing food. Because right now, this imbalance is causing us to import food.

“When you depend on food imports, you will be vulnerable to price shocks in the global market.”

In 2017, Malaysia imported about RM51.3 billion worth of food, and the government has stated it wants to bring this amount down.

When it comes to housing, Selvaraj said the focus should be to cap house prices instead of easing loan conditions, which has been suggested by some ministers.

“The problem is not the loans, but the prices. If you make it easy for people to get loans, which they struggle to pay back because their income is low, that does not solve the problem of high prices.”

He also criticised the recent suggestion to let developers sell off unsold luxury properties to foreigners, saying this sends the wrong message.

This is because developers want to build luxury units instead of affordable homes, he said.

“If the government allows them to sell unsold higher-priced properties to rich foreigners, then in the future, they won’t be incentivised to build cheaper houses for locals.”

Minimum standards

Fomca also suggested that more funds be allocated for healthcare to reduce waiting time.

“Now, we spend 3% to 4% of our GDP (gross domestic product) on healthcare. We should increase it to 5% to 7%,” said Selvaraj.

The long wait and lack of insurance among low-income workers sometimes force them to fork out their own money to get prompt treatment at private hospitals, which are expensive, adding stress to their monthly finances.

“The government should get hospitals that are owned by government-linked companies to provide no-frills, affordable treatment plans for low-income folk. This will take some of the pressure off public institutions,” said Selvaraj.

He added that since there is a push to review the official poverty rate, the government should draw up a minimum set of living standards for Malaysians.

These include how much food, education opportunities, healthcare services and housing a family should have to lead a decent life.

These standards will form the basis of a comprehensive social safety net that all citizens will be able to qualify for, said Selvaraj. – October 3, 2019.