Our political leaders must realise the human dimensions of the current rising cost of living in the country through increase in the prices of essential goods and services and absence of social safety nets. The continuing situation can lead to increased community and national tension, social and societal costs, competition for survival, tension in the home, frustration and psychological stress.

Based on conversations with several  individuals from middle class, poor  and very poor backgrounds, it is evident that Malaysians are trying to cope with the price increases through various mechanisms.

A shift  to lower cost foods topped the list of coping mechanisms adopted by individuals and families. Consumption of cheap carbohydrates replaces more nutritious food such as fish, meat,  varieties of vegetables and fruits , the prices for all of which have registered sharp increases. Fish has  traditionally been an important source of protein for people living in Malaysia’s riverine villages to upmarket urban housing areas.

The Malaysian Health Ministry recommends a daily intake of a variety foods as shown in its  Food Pyramid. This is a contradiction of policies . How can workers on low wage sustain their families on the Ministry of Health’s nutrition guidelines?

Obviously, Malaysians with low purchasing power have major problems in accessing food based on the government’s guidelines. Consuming too much carbohydrates will lead to obesity and related illnesses such as diabetes and hypertension.

With subsidies removed and the Goods and Services Tax (GST) introduced, the middle class will be the new poor and the poor will slip into a poorer situation. Lack of food has huge and long lasting effects on children as nutrition is crucial for physical and mental development.

A Food Aid Project for Malaysians is a highly looming possibility.

Access to healthcare, during difficult times, will decide who lives and who dies. In times of financial hardship, people put off seeing a doctor when they are ill.

A visit to a doctor or hospital  includes cost of transport to clinics and hospitals. In rural East Malaysia, for example, the nearest hospital in some cases would be a five hour drive in a hired vehicle. Development for East Malaysians did not translate into  equitable healthcare for them as some districts do not have hospitals like most of peninsular Malaysia.

Rising depression rates, suicides and domestic violence are some of the tragic consequences of  difficult financial situations and increasing individual debts. During the first quarter of the 1998 Financial crisis , there was an average of 25 suicides a day in South Korea.

Drugs and alcohol become easy refuge from problems of difficulties arising from increasing  costs of living. Alcohol abuse often results in increasing domestic violence.

More than one job, access to credit problems

Holding more than one job and working longer hours for overtime pay is a strong indicator of the challenges faced by wage earners to cope with the high cost of living. I was told there are professionals working in firms take on part-time teaching jobs in the evenings in colleges and universities to make ends meet. The long hours of work are likely to take a toll on their health and family life.

An increase in informal sector activities  is often seen when households are in debt. Financial support for small home based businesses are not easily available. Owners of such businesses may fall victims to exploitative activities of loan sharks.

Tontine or Kutu, a scheme where individuals pool in their money and take turns to accrue a lump sum is popular with the informal sector. Interestingly, the currency for Tontine or Kutu is Singapore dollars, according to sources I spoke to in Kuala Lumpur. What is happening to confidence in the ringgit?    

Crime

More housing areas are engaging security  guards or turning their enclaves into guarded communities as break-ins and burglaries are on the increase. Paying for  our personal safety in addition to paying income taxes, GST, etc reflects the failure of the state to protect its citizens.

Address tensions with openness and good governance, not threats

With rising costs of living , there is a natural tension between the  government and the people. The government needs to understand that it is the right of people to raise questions, criticise poor policies and propose solutions. A government committed to good governance will provide space and institutional mechanisms for the public to provide solutions to social and economic crises and not curb criticisms of government. Threats undermine trust and legitimacy of government.

 

JOSIE FERNANDEZ is a researcher, social activist and an Asian Public Intellectual Fellow.