Summary Kadir Jasin: Malaysians can expect their money to get smaller as living expenses get costlier in 2024 focusmalaysia.my
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Malaysians face financial strain in 2024 due to rising living costs and businesses passing on increased expenses, leading to reduced purchasing power.
Slides
Slide Presentation (6 slides)
Key Points
- Malaysians can expect their money to get smaller as living expenses get costlier in 2024
- Existing taxes will be increased and new taxes will be introduced, including fuel and electricity subsidies removal for the T20 group
- Prices of goods and services are likely to rise due to the reform of subsidies and new/increased taxes
- The low inflation rate economic indicator may not reflect the actual cost of living experienced by many Malaysians
- Global inflation rate is predicted to be around 5.8% in 2024, with core inflation not expected to return to 2% until 2025
- Businesses may pass on cost increases to consumers, as evidenced by the increase in parking fees at Pavilion Kuala Lumpur
- Shortages of certain medicines could be a business strategy to increase prices
Summaries
18 word summary
Malaysians face tighter wallets in 2024 as living costs rise. Businesses pass on increased costs, squeezing purchasing power.
50 word summary
Malaysians face tighter wallets in 2024 as living costs rise. Businesses pass on increased costs, with higher taxes, reduced subsidies, and potential medicine shortages leading to price hikes. While economic growth aligns with global trends, domestic developments directly impact ordinary Malaysians. Reforms, new taxes, and escalating costs squeeze purchasing power.
113 word summary
Malaysians can expect tighter wallets in 2024 as living costs rise. Businesses are likely to pass on increased costs to consumers, with higher taxes, removal of fuel and electricity subsidies, and potential medicine shortages leading to price hikes. While economic growth is predicted to align with global trends, the well-being of ordinary Malaysians will be more directly impacted by domestic developments. The reform of subsidies, increased service tax, and new taxes on capital gains and online transactions will contribute to escalating costs of living. Kadir argues that the low inflation rate does not accurately reflect the experiences of many Malaysians, who will face a squeeze on their purchasing power in the coming year.
354 word summary
Malaysians Can Expect Tighter Wallets in 2024 as Living Costs Rise
As the challenges of 2023 continue, the outlook for 2024 appears even more daunting for Malaysian consumers, particularly those in the B40 and M40 income groups. According to veteran journalist and blogger Datuk A. Kadir Jasin, several factors suggest that financial hardship is likely to persist, if not worsen, in the coming year.
One of the primary concerns is the likelihood of businesses passing on their increased costs to consumers. Kadir anticipates that existing tax rates will be raised, and new taxes will be introduced, including the removal of fuel and electricity subsidies for the T20 group. These changes will inevitably lead to higher prices for goods and services, as exemplified by the recent announcement of increased parking fees at the Pavilion Kuala Lumpur shopping center.
Furthermore, Kadir has observed that certain types of medicines have suddenly become scarce in many pharmacies, which he suspects could be a strategic move by businesses to reintroduce them at higher prices in the new year.
Despite predictions of Malaysia's economic growth aligning with global trends, Kadir believes that the well-being of the common people will be more directly impacted by domestic developments. The International Monetary Fund (IMF) has forecasted Malaysia's economic growth to rise slightly to 4.3% in 2024, while local forecasters expect growth within the 4.5% to 5.5% range.
However, Kadir argues that price increases and the escalating cost of living will be difficult to avoid due to the reform of fuel and electricity subsidies, the 2% increase in service tax, and the implementation of capital gains tax and tax on online transactions from abroad. He is also critical of the low inflation rate, which he contends does not accurately reflect the experiences of many ordinary Malaysians.
Ultimately, Kadir's assessment paints a grim picture for Malaysian consumers in 2024, as they brace for higher living expenses and a potential squeeze on their purchasing power. With the combination of tax increases, subsidy reductions, and the possibility of strategic business practices, Malaysians can expect their money to go further, as the cost of living continues to rise.
475 word summary
Malaysians Can Expect Tighter Wallets in 2024 as Living Costs Rise
As 2023 proved to be a challenging year, the outlook for 2024 appears even more daunting for Malaysian consumers, particularly those in the B40 and M40 income groups. According to veteran journalist and blogger Datuk A. Kadir Jasin, several factors suggest that financial hardship is likely to persist, if not worsen, in the coming year.
One of the primary concerns is the likelihood of businesses passing on their increased costs to consumers. Kadir anticipates that existing tax rates will be raised, and new taxes will be introduced, including the removal of fuel and electricity subsidies for the T20 group. These changes will inevitably lead to higher prices for goods and services.
As an example, Kadir cites the recent announcement that the Pavilion Kuala Lumpur shopping center will increase its parking fees, with the first hour costing RM4 and each additional hour also priced at RM4 – a significant jump from the current RM3 per hour. Kadir argues that the authorities must closely monitor such hikes and intervene if the increases are unjustified.
Furthermore, Kadir has observed that certain types of medicines have suddenly become scarce in many pharmacies in Kuala Lumpur and Petaling Jaya. He suspects this could be a strategic move by businesses, with supplies being withheld and then reintroduced at higher prices in the new year.
Despite predictions of Malaysia's economic growth aligning with global trends, Kadir believes that the well-being of the common people will be more directly impacted by domestic developments. The International Monetary Fund (IMF) has forecasted Malaysia's economic growth to rise slightly to 4.3% in 2024, while local forecasters expect growth within the 4.5% to 5.5% range.
However, Kadir argues that price increases and the escalating cost of living will be difficult to avoid due to the reform of fuel and electricity subsidies, the 2% increase in service tax, and the implementation of capital gains tax and tax on online transactions from abroad.
Kadir is also critical of the low inflation rate, which has often been touted as a sign of the unity government's success over the past year. He contends that this rate does not accurately reflect the experiences of many ordinary Malaysians. Private research house Kenanga Research predicts that next year's inflation rate will be between 2.5% and 3%, compared to less than 2% in 2023. Moreover, Kadir points out that the Consumer Price Index (CPI) reached its highest level in history in October 2023, at 130.90 points.
Ultimately, Kadir's assessment paints a grim picture for Malaysian consumers in 2024, as they brace for higher living expenses and a potential squeeze on their purchasing power. With the combination of tax increases, subsidy reductions, and the possibility of strategic business practices, Malaysians can expect their money to go further, as the cost of living continues to rise.