Rising Costs of Living? Increase the Income of M’sians & Not Just Control the Prices, Says Economic Analyst

Times are tough, and things are not made easier with the issue of the rising costs of living that seems to have no end. It was also reported that the OPR may increase again in 2023. With everything skyrocketing when it comes to finances, one may wonder about survival during these tough times.

An economic analyst, Prof. Emeritus Datuk Dr. Zakariah Abdul Rashid believes that there is one long-term solution to combat the issue of rising living costs, and it starts with the wages of domestic workers in Malaysia.

“Raise the income of domestic workers in Malaysia.”

In fact, he said, many people mistakenly believe that the increase in the cost of living is only linked to the price of goods or inflation alone.

“I’ve said it before, a few years before the Covid-19 pandemic. The cost of living isn’t high, it’s about our low income,” Dr. Zakariah explained.

He said that the feeling of living costs being high is due to our low monthly pay, and the way to overcome the issue is to increase the income, not control the prices, as reported by Astro Awani. 

Zakariah added that at the time being, the labor force in Malaysia is still seen as more of a concept of unskilled labor. If employers continue to depend on unskilled labor, the problem in the country’s economic structure is bound to continue.

He then said that the previous government has got 2 things right – increasing the minimum income, and controlling the price of goods. However, the real issue is far from being solved.

“The right steps have been taken, but that does not mean the problems are solved. The costs of living that we’re talking about does not involve small amounts,” he added.

To Zakariah, the steps taken have only alleviated but have not solved the problems.

The previous government increased the minimum wage to RM1,500 per month. To battle the issue of rising living costs, do you think the unity government may raise the minimum wage? What else do you think can be done to survive during these tough times?

Also read: Politician Says Minimum Wage Should Be Revised Again To At Least RM2k To Help Youths/Fresh Grads