In the weeks leading up to April 1, father of four S Anba was a man on a mission.

 

“I tried to beat the GST and I bought stocks of things that can last long,” Anba said.

 

Like many others, he bought household items in bulk in anticipation of the new six percent tax.

 

Now that GST has almost reached its two-month mark, families have come up with plenty of other ways to deal with the increased prices of many goods and services.

 

“You have to make a concerted effort to maintain your household budget,” Anba, 57, said when met in his house in Damansara Perdana, Selangor.

 

He is a retired businessman living with his wife and three of his children, all in their 20s.

 

Even accounting for two of his daughters, who recently returned home after studying abroad, Anba estimated his grocery expenditure has gone up by about 10 percent due to the GST.

 

Anba’s estimation is slightly higher than the average hike in grocery bill experienced by Malaysiakini readers in a recent survey by the news portal .

 

On average, those who took part in the survey found their grocery bill 6.7 percent higher, but according to the Consumer Price Index for April released yesterday, prices rose 1.8 percent across the board.

 

Food and non-alcoholic beverages cost 3.1 percent more compared to March, the Department of Statistics said. 

 

Keeping to the price list

 

Jessica Tan, 44, who has three young children to care for, is from a slightly different generation, but her strategy is not so different from Anba's.

 

“My stock is always there. I always buy, like half a dozen (of a product) and keep as stock. That’s how I cut costs. I would rather pay now than pay extra later,” said Tan, a customer service manager.

 

Her stockpile has shielded the family from the early effects of the GST, with Tan managing her household expenses using a strict regimen of tracking the prices of items.

 

The Subang Jaya resident said the high cost of living has left her with no choice but to practise buying goods in bulk when there are sales going on. 

 

“I bring my list when shopping and each time they (the hypermarkets) have promotions, I will compare them with my list, so if it's cheaper, I will update here (on my list). Then I will buy and keep.

 

“That's how I cut costs. I would rather pay now and keep because by doing that, I save a lot. If I don't monitor the prices, then I have to pay extra RM3 to RM4 for one item,” she said.

 

Tan also disclosed that brand names do not matter to her as long as prices are reasonable.  

 

“[This is] because some products are for daily use... I would not stick to a brand. As long as any brand is having a promotion, then I will buy.

 

“I will also update in my data, to serve as a guideline for me to do my purchases,” she said.

 

Children’s expenses go up

                                               

Even so, Tan seemed helpless when it came to her children’s education. She complained how her expenditure has increased due to the extra fees for tuition and transportation, which she has to bear monthly.

 

“They said the cost of living has increased, so they have to increase the tuition fee by RM10. Same goes for transportation. It was RM90 previously. Now it has gone up to RM100,” she lamented.

 

Her children’s transportation fees, which saw an increase of about 11 percent, is not far off from Malaysiakini readers who reported an average 7.9 percent hike in the cost of sending their children to and from school.

 

Children’s education came to 8.5 percent more in the first month of the GST, while childcare was 5.3 percent pricier, the portal’s survey showed.

 

As for the ways she resorted to in order to cope with GST, Tan said the shrinking value of the ringgit and its purchasing power made it hard to grapple with the new tax.

 

“With GST, the government said... prices will drop. But our purchasing power has shrunk, our money’s value has also shrunk. So, what benefit do we get?” she asked.

 

Packed lunch, no cleaning service

 

Anba has a different approach to the rising prices after the GST was put in place. His family tries to shave off excesses in different parts of their lives to make up for the rise in expenses due to GST.

 

Anba’s family has even stopped eating out as much as they used to. He said the family used to eat out at least twice a week. After the GST, it has gone down to about twice a month.

 

“Now we say, ‘okay, maybe we don’t need this’.  So your mind starts thinking, how do you reduce the budget?” Anba said, to the agreement of his daughters.

 

“All of us try to take food from home (for lunch on a working day) as much as we can,” one of his daughters, Sathya Jeevanba, said. She and her siblings strive to pack lunch from home before going to work every day.

 

This strategy has proven helpful, as the Malaysiakini survey found that eating out costs a significant 12.2 percent more, compared with before the GST took effect.

 

Indeed, GST is charged on top of service charge, as well as on the service charge levied by most restaurants, much to the consternation of diners.

 

Anba’s family also found other ways to keep the household budget in check.

 

“We used to have temporary cleaning people coming in, but my wife said, ‘No more. I can manage it myself. My daughters and son will help me’,” Anba said.

 

Judging by his daughters’ expressions, this is an unpopular decision but it was made to cut the fat, even though the cleaning service charges have remained the same.

 

“We are flogging our daughters to go out and work hard,” he quipped.

 

Anba makes light of things but he admits that balancing the budget is no laughing matter.

 

“You have to manage with what you have.”

 

 

Yesterday: Mkini survey: Household expenses up with GST

Tomorrow: GST and the city: How young, singles cope