Economic outlook: Who is right – Rahman Dahlan or Mydin boss?

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So minister Rahman Dahlan has dismissed Mydin boss Ameer Ali Mydin’s comments that despite Malaysians don’t have money to spend.

He pointed to Malaysia’s strong economic growth, which he said has clearly benefited the people. They now have rising income and purchasing power.

“The economic performance and condition of a country and its people cannot be measured by just one sub-sector, such as the hypermarket industry, alone… This is evident from the fact that private consumption continued to be the biggest contributor [53.2%] to Malaysia’s economy.”

In the contrast, the Mydin boss said many ordinary Malaysians simply don’t have enough cash to cope with the higher cost of living.

“I think people just don’t have money,” Ameer Ali Mydin told BFM. “Let’s go to data. I think end of the day, let’s ask how much prices are going up. Prices have gone up seriously every year. Within this five-year period, prices have gone up over 14%” (according to Mydin’s own data).

Although this might not seem excessive over a five-year period, the rise in prices of individuals items has been “scary”, he said. For example Camerons cabbage rose by 29% over five years, ikan kembung hitam (Indian mackerel) 20%, a popular chilly sauce 39%, and a popular sardine brand 31%.

These hefty price hikes – rather than the 2-3% official inflation rate – are the reality, especially for the lower-income group, who feel the impact the most as they spend a disproportionately higher portion of their income on food.

READ MORE:  What is Bank Negara doing about all these get-rich-quick 'money games'?

And higher property prices (some of it due to speculation) have also contributed to the higher cost of doing business, which in turn is passed down to the consumers.

So Rahman may be right that the economy may be growing, but who are the ones benefiting most from this extra wealth? The fat cats, cronies, the well connected developers and the top 1-5% perhaps?

That explains why you see flashy cars around (have you noticed more Porsches on the road?) at a time when many ordinary people can only stare in disbelief at the price tags in the market.

Check out this article I wrote recently: Huge growth in GDP – so why the tough times for many?

By the way, how much are you paying for your char koay teow and wan tan mee now? Perhaps the Char Koay Teow, Cabbage, Sardine and Ikan Kembong Composite Price Index might be a more realistic measure of the economic state of affairs for many households out there.

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tunglangYog SothothNormanD Maniambigjoe Recent comment authors
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Norman
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Norman

Jom Undi for a better Malaysia

Jasmine
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Jasmine

Simple video with a good message.
Please share it to others.

Zhang Meiyou
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Zhang Meiyou

Undi Rosak = Undi untuk BN-Umno.

D Maniam
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D Maniam

Don’t spoil your votes. If you don’t like UMNO/BN, of course vote PAKATAN HARAPAN If you are not sure, give the benefit of the doubt to PH. Because PH did not cause the Government indebted, said to be about RM50 billion (1MDB now run by the Govt). Imagine, RM50 billion is a huge sum of money. And PH did not introduce the unpopular GST which taxes even the low income and the poor every time they buy anything, even kacang putih – GST charged on the kacang before it’s prepared into kacang putih. If PH lets the GST carry on,… Read more »

HuatHuatHuat
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HuatHuatHuat

Jalan Tengah Penang Caltex patrol station (opposite Giant supermarket) counter selling nasi tomato bungled RM3. After pumping patrol to run vehicles, many got to save so RM3 lunch. Rahman Dahlan should come and taste the plight of the struggling rakyat.

Norman
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Norman

Brace yourself for irreversible price hike of Penang hawker food between 20-50 sen this Chinese New Year, as homecoming of outstation Penangites (those with SingDollar) are willing to pay high price to the disadvantage of the locals.

shrieki
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shrieki

Why not complain to dumno engineer, calvin and ah soon khor to tell them to their central gomen leaders? Do away with incomd tax or gst

glissantia
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glissantia

14% over 5 years ia about 2.6% p.a. This matches govt. claims. What is being evaded is that income is not rising. That won’t happen with (a) emasculated unions (b) free flow of immigrants (c) monopolies and syndicates.

Dylan
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Dylan

Anil,

You should update your char kway Teow picture.
Now smaller serving but higher price.

Ameer Mydin was right in saying canned sardine (comfort food to many poor Malays) went up a lot in price but can Dahlan offer cheap canned sardine at KR1M 2.0?

tunglang
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tunglang

That ex-serviceman is claiming affordable Char Koay Teow is a sign of AOK Outlook for Penang!..

Yog Sothoth
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Yog Sothoth

The supermarket shelves where the ‘super savers’ are stocked are usually empty. Cooking oil in plastic bags which cost 2.50 per kg (half the price of the popular brands like Labour etc) are usually empty at Gama and Giant Penang. It’s the same with other products like condensed milk. The really cheap ones are sold out faster than they can be replenished. Regular priced items are hardly, if ever, sold clean off the shelves. What does this tell you? Yes, we still frequent supermarkets in droves. We need food to survive obviously. But what are we buying more of these… Read more »

bigjoe
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bigjoe

UMNO/BN Ministers seldom right about real debate. But Mydin boss view is actually only partially right. Off-line retail in Malaysia has taken a small hit from online sales but because the overall demand is sluggish, brick-mortar retail data, especially the lower end of consumption that is the grocer, they gets to see the largest part of the problem. KR1M is a dumb idea in the first place. Private label grocer are EXTREMELY DIFFICULT – they are doing it with small stores with bad location. Convenience stores of private label is even more idiotic. Putting convenience and uncertain quality is like… Read more »

tunglang
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tunglang

In the real globalised ruthless, tongkat-less world,
Yoursay: Welcome to the real world, Geely doesn’t owe bumis anything
Read more at https://www.malaysiakini.com/news/412336#rRoDy9SY0oKLOpD1.99

Where still got FREE lunch? The so-called B+ Agenda .. in a world of its own for its own soonest-demise. Agree Norman?

tunglang
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tunglang

Houses in Malaysia unaffordable: Bank Negara
https://www.malaysiakini.com/news/412299
Developers, stop your dreaming of super-profiteering.
Face the realities. Nobody’s going to buy unaffordable houses.
Soon, there may be limits to what you can sell to foreigners.
Face the realities or chap-lap.

Elm
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Elm

Simply put, Rahman Dahlan is SO out of touch with the ordinary man in the street! For once I think, he should come down from his ivory tower and live among the ordinary folk, walk with the grassroots, talk to them, including your people in Sabah, ask them how often they shop, how much they spend, at the malls that have sprung up like mushrooms.., are they happy with their current economic status? When in Sabah, tour the suburbans, the smaller, rural towns. Don’t use your 4WD vehicle, use a Kancil or take a bus. And go around the malls… Read more »

tunglang
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tunglang

Anil, Happy Valentine!
Willie Nelson, Julio Iglesias – To All The Girls I’ve Loved Before

Anil, even though time$ are bad, we can still shower appreciations in our own special ways like this song thro’ the wonder of Twitter + WeChat.

Norman
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Norman

Willie Nelson’s ‘Imagine’ tribute to Lennon:

Jay
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Jay

Thinking of your past girlfriends on Valentine Day?

tunglang
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tunglang

Your life’s without girlfriends?

shrieki
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shrieki

Ah pek colour wolves evolution year of dog

Valentino of Dato Kramat
Guest
Valentino of Dato Kramat

Jakim May find the lyrics to To All The Girls I Love Before offensive as it can direct the immature youths to engage in close proximity?

JULIO himself fathered many out of wedlock children so no role model in Bolehland.

Norman
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Norman

A prominent Saudi sheikh told a newspaper on Thursday celebrating Valentine’s Day did not contradict Islamic teachings, defying the hardline position of the kingdom’s religious police on the holiday.

Sheikh Ahmad al-Ghamdi, the former head of the Mecca region’s Commission for the Promotion of Virtue and Prevention of Vice, said in an interview with Arab News that Muslims could celebrate love on Feb. 14.

https://www.reuters.com/article/us-saudi-islam/saudi-religious-leader-says-muslims-can-celebrate-valentines-day-idUSKCN1FZ2MB

Jakim may change its position on this matter?

shrieki
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shrieki

Ah pek dont follow year of dog but colour wolf.

Ma jiji
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Ma jiji

Ahha, Chinese new year is here, never mind about the rest. Heng ah ! Ong ah ! Huat ah ! Especially to Penang state !

Zhang Meiyou
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Zhang Meiyou

Must check the flame intensity at the temple to ascertain the economic outlook for the year.

Norman
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Norman
shriek
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shriek

Ah pek very quiet? No complain prices going up as a result of dumno engineer such that you have to hunt for cheap curry mee?
Welcome year of the DOG. Happy CNY to Ah pek. Can howl more in year of dog. Kong Hee Huat Chye so that ah pek no need to hunt for cheap curry mee

Norman
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Norman

If Mydin boss is wrong, why BN not charge him for spreading fake news on radio interview?

Anyway, most Malaysians have little cash savings after paying for car hire purchase, monthly bills for Astro subscription, home internet, mobile data plan, foot reflexology, and indulgence in fancy stuff like overpriced sandals…

HuatHuatHuat
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HuatHuatHuat

Malaysia GDP largely depends on domestic private consumption. If GDP continuously high in 5-6% range, the national debt level also rises concurrently.

Property developers now showcasing New launches this CNY period. Those who purchase for own stay or speculative investment only help to drive the frenzied escalation of home prices, which eventually burst to create misery to buyers while developers are already secure the fund – you help them but they do not help you when you are in debt!!!

Norman
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Norman

Najibnomics is all about spend, spend, spend! Household expenditure goes up to spur domestic consumption, even with purchase on credit with no due care for private savings. That is how our GDP is kept at face saving value to keep Najib in good standing with JASA’s and Dahlan’s spin on mainstream media. Nation and household debt are rising only for the future generation to face the consequences. That’s why Ringgit is so dysfunctional.

tunglang
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tunglang

Najibnomics also includes spending millions on diamonds or thousands on hairdos. How many can splurge like that which will attract IRD radar?
Even now, kangkung for Kek Lok Si tortoises has gone up in price!
But Najibnomics won’t face reality by hiding its tortoise head in the Dahlan shell!

shrieki
Guest
shrieki

Following robin style. Sherrif of nottingham. Now a deg in indust econs from nottingham forest

HuatHuatHuat
Guest
HuatHuatHuat

Typical major expenses of middle class Penangites :
Home instalment
Car instalment
Food including weekends splurging to thank parents to take care of children.
Groceries at hypermarket
Children tuition
Car patrol
Utilities electricity water bill
Internet WiFi bills
Face value expenses to keep up with Peers.

How much is left you can share here with Anil

tunglang
Guest
tunglang

Take a dig at other’s lifestyle is fun to you, why not you (better) work harder to earn more to support your poor self + your suffering household) instead of complaining with a stupid spin?
Tak malu punya orang!

Norman
Guest
Norman

But OK to poke fun at those drinking Starrybucked coffee? I stick with my Pallas locally-made canvas shoes, cheaper than Converse one.

shrieki
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shrieki

Kpc. Ah pek forget even unu grads are unemployed. Dumno engineer, ah soon and calvin’s pay master telling grads to be nasi seller. Ah pek too old to remember that jobs created are for non grads and mAinly to be oil palm or factory prod workers