If Economy Is Doing Well, Why Don’t We Feel It?

Recently, Ipsos Malaysia, a research marketing firm released the results of a survey they conducted stating that 68 percent of Malaysians feel that the country is in a recession. This is even though data shows Malaysia is actually experiencing economic growth. The economy grew to 3.7 percent in 2023 and is expected to grow steadily by four to five percent in 2024

Southeast Asian countries have a better perception of their country’s economic situation. For example, in Indonesia, 50 percent of the population believes that their country is in a recession, 66 percent in Thailand and 32 percent in Singapore. These three countries all show a downward trend in their citizens’ views. Does this mean that Malaysians are actually out of touch with reality?

Source: https://en.wikipedia.org

I can give you all kinds of anecdotal examples of how people are actually feeling the pinch. My wife and I are feeling pinched! Our monthly grocery expenditure has increased by around 20-25 percent. The electricity bill in our house has gone up by about 50 percent in the last two months with consumption remaining the same. Eating out with the family also costs more now. 

My son, wife and I run a small boutique financial advisory company and we are trying to improve revenue. Many clients are looking at value add on services! And competition is intense.

Others who are entrepreneurs and run small businesses face similar challenges; drop in their income and struggling to sustain themselves. We are also seeing government subsidies being removed. Most recently, diesel subsidies were removed and its price has increased by more than 50 percent just overnight. So, maybe what I’m trying to say is that excuse us Malaysians for having the perception that the country seems to be in a recession.

Ipsos’ survey also states that 24 percent of Malaysians say that they are struggling financially, 53 percent say they are just getting by and only 21 percent claim to be financially comfortable.

If you see another subsidy go, i.e. RON95, then we will have a full-blown inflation. And what will the Government do? I may get by, by God’s grace. But what about those in the B40 group?

The Government will issue some pontifical statement about price increases. And so, what? They cannot dictate prices!

Some economists laud these measures, even the IMF. But they speak as if subsidies are not done in OECD countries. Another BS! The developed countries have subsidies for agriculture, manufacturing and social services. Some for new technologies or EVs. So, please do what is right for Malaysia!

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Comment: If economy is doing well, why don’t Malaysians feel it? Zan Azlee, Malaysiakini, 15 June 2024