Ouch!

Recently, forced by circumstances, my husband and I acquired a second car. We wished we didn’t have to, since we are both in agreement that, for something that depreciates rather quickly, cars are very expensive here in Malaysia. With the rising rate of interest for car loans, the recent price slash (though the word ‘slash’ is hardly accurate; ‘nick’ would be more apt!) is rendered almost negligible. And when was the last time you’ve heard of someone buying a car with cash?

So, I can’t help but to be reminded yet again on how high our cost of living is here. And when I say here, I’m comparing Malaysia to the UK, the only other country where I’ve stayed long enough to have a feel about these things. And before you begin dividing or multiplying figures by 6.5, stop and think again – that’s a rather unfair method of comparing cost of living. A more accurate way is to compare earnings against cost of living, because the general rule is: you earn in ringgit, you spend in ringgit. Unless of course, you are one of the lucky few who lives in Malaysia but got paid in US dollars or Euro.

Let’s take a fresh grad salary for instance: in Malaysia it’s RM2k/month (and even then, that’s on the high side, majority make less) and in the UK it’s also about GBP2k/month (and even so, that’s on the low side). I’ll begin with a car, since that’s what triggered my musing anyway. In the UK, a brand-new Mercedes starts from as low as GBP14k! Imagine – if you save up 1k each month (and that’s very possible, provided you haven’t started paying up a heavy mortgage), you’ll be able to buy a Mercedes cash in less than a year! Here? Don’t even dream – even the cheapest Kancil cost RM22k! What about food? A loaf of bread costs 50p (0.025% of 2k) vs RM3 (0.15% of 2k, 6 times more expensive!), a litre of milk costs 60p (0.03%) vs RM4 (0.2%, 7x), a storybook costs GBP7 (0.35%) vs RM30 (1.5%, 4.3x), a litre of petrol costs about GBP1 (0.05%) vs RM2 (0.1%, 2x) and so on and so forth. To be fair, not everything is cheaper in the UK. Human labour and services are especially pricey, hence locally produced good are usually more expensive than imported ones.

But back to where I begin, buying a car here is quite painful. Rarely can one find a reasonable 'affordable' car. Affordable is not anything as long as the installment is lower than one's income (nevermind if the loan is for 10 years and the installment eats up more than half your salary). I define 'affordable' as costing one years' gross income. A bit harsh maybe, but that my gutfeel. Wouldn't paying out 24% of your monthly salary over 5 years sounds better? (assuming 4% interest and minimal downpayment). So, be honest, what car can you afford?

Yet, why the rant? Do I wish to live in the UK where life is easier? No. I agree with the pepatah ‘Hujan batu di negeri sendiri, hujan emas di negeri orang, baik lagi negeri sendiri.’ Why the rant? We are indeed better off than certain other parts of the world for example Palestine, where life is not about getting by but about survival. Truly, I’m ever grateful to Allah for the abundant rezeki He has bestowed. It’s just that I feel annoyed when we are told that we live in one of the cheapest place in the world (yes if you earn in USD or Euro) or that the nation's economics is prosperous (to who?) or that our life is better now than before (at what cost?) or that our buying power has increased (yeah right). In short, don’t take propagandas for granted, especially if it has direct impact on our everyday lives. Awareness and knowledge will make a difference.

But my thoughts has led me to dangerous places – I really do not crave for an easy and comfortable life as much as I crave for Allah’s pleasure. It’s just that – I wish I can quit my job and stay at home to take care of my baby without thinking so much about the financial implications. Ya Allah, jauhkanlah aku daripada bersifat hubbud-dunia…