The Malaysian Insight

STOPPING the “open house” tradition, buying new clothes from thrift shops and even skipping the annual “balik kampung” exodus.

These are among measures taken by many families from lower- and middle-income wage groups to cut expenses this Hari Raya, as the rising cost of living hits home.

The consumer price index (CPI) in Malaysia reached 4.4% in April, an increase from a year ago mainly because of a 16.7% jump in the transport index.

The monthly Department of Statistics report on CPI recorded increases for transport (+16.7%), food and non-alcoholic beverages (+4.1%), recreation services (+3%), health (+2.8%), restaurants and hotels (+2.4%), and housing, water, electricity, gas and other fuels (+2.2%).

The Malaysian Insight spoke to three families to find out how they are managing their budgets for the Hari Raya celebrations.

Middle-income family with four children (household income: < RM10,000)

Afifa Daud, a mother of four aged between seven and 11, and her husband started saving five to six months before Hari Raya.

“We usually need about RM5,000 to celebrate Hari Raya moderately. So, we need to save money early on.

“Otherwise, there will be financial pressure as the festive holidays draw near,” said Afifa, who runs a tuition centre with her husband.

Some changes made to their spending include cooking at home, buying new clothes long before Hari Raya to avoid the price hikes and shopping at thrift stores.

Her children have also been told to try and save RM2 out of their daily RM5 pocket money, so they can buy new clothes for themselves this Hari Raya.

Afifa said her family has been on an austerity drive for the past two years, since the rising cost of living in Kuala Lumpur started to chip away at their savings.

“We no longer have a maid. I’ve stopped sending my seven-year-old to the nursery after school. The child comes with me to the tuition centre.

“We hardly hold open houses. When we do, we only invite immediate family members. We also haven’t balik kampung for Hari Raya for three years,’ she said, explaining that it was too costly to travel to her hometown in Kedah and her in-laws’ in Perak during the festive season.

“So, we have to skip the Raya homecoming. We only visit our families at other times.”

Single mother with six children (household income: RM3,000)

Hari Raya celebrations this year are expected to be the most muted compared with the past few years for single mother Nurulazila Ismail, 39, whose six children are aged between six and 16.

“This year Hari Raya is not going to be as cheerful as the last,” said the secondary school tutor who has been divorced for six years.

Nurulazila makes less than RM3,000 a month and receives RM300 in zakat payment each month.

The combined amount is stretched to support the family of seven. She pays RM1,300 a month for rent and to service a car loan.

“I’ve put aside money since January for festive decorations, tit-bits, new clothes for the children, but it’s still not enough,” she said, adding that she earned an extra RM500 this month selling cookies.

But even with that extra income, ‎she has decided against having visitors this Raya.

“When you have children visiting, you need to prepare a lot of things. So, I told my kids since early this year that we have to do the visiting this year.”

Low-income family with two children (household income: < RM2,000)

Nasi lemak seller Nur Atikah Nadarajah, 47, who earns less than RM2,000 a month, said the rising cost of goods has hit her hard.

“In the past, RM60 would be enough to buy a set of clothes for one child. Now, the budget is RM150,” said the mother-of-two, who lives in Brickfields, Kuala Lumpur. 

Like many Malaysian families, Atikah is struggling to cope with the rising cost of living, which some blame on the introduction of the goods and services tax.

“We have no choice but to be smart in how we spend,” she said. – June 13, 2017.