PETALING JAYA: Spend wisely and within your means amidst financially challenging times, consumer groups have advised the public.
Consumers Association of Penang (CAP) education officer NV Subbarow said consumers should only purchase items according to their budget, and to only make purchasing decisions after much thought.
“The price of goods are all going up. Make sure to save up whenever possible and when spending, make an informed decision to ensure it (spending) is within your budget.
“This is especially important for families as there are many things to consider such as house and utility bills, alongside expenditures for medical expenses,” he said.
On food purchases, Subbarow said it was still essential for families to purchase nutritional foods given their importance for school-going children.
“At the same time, purchasing cheaper alternatives can also help in reducing the total amount spent.
“At the same time, the government could also look towards measures to subsidise food sold in selected school canteens to make the meals more affordable for students while also helping parents to slightly save on expenses,” he said.
Federation of Malaysian Consumers Associations (Fomca) president Datuk Marimuthu Nadason advised consumers to make informed decisions when making any purchases.
“With information now at the tip of our fingers through the Internet and smartphone, always do your homework to ensure you are making an informed decision (for purchases).
“Be prudent in your spending while also planning and managing whatever resources you have,” he said.
Marimuthu said the public should also be patient and give time to the current government to tackle various issues affecting society.
“We must be fair to them (government). Give the government an opportunity to stabilise. No one can take over and perform miracles overnight,” he said.
On the forecast of overnight policy rate (OPR) hikes by Bank Negara Malaysia later this month, Malaysia University of Science and Technology Research and Innovation provost Prof Geoffrey Williams said decisions to postpone impending hikes depended on the structural economic forecasts.
“(Other) considerations that may cause a hike in (OPR) rates would be the expected impact of government spending (which until we see Budget 2023 on Feb 24) that will be based on the mini-budget,” he said.
Williams said another consideration was inflationary expectations and whether it would lead to a more general rise in prices across all consumer price index (CPI) components, which affected core inflation.
“There is some evidence this is happening as we see embedded inflationary expectations allowing a rise in general prices,” he said.
A third factor, Williams said, was whether higher rates were biting in terms of financial markets.
“The Financial Stability Review released by Bank Negara for the first half of 2022 also suggests that credit markets have not been affected too much and that loan repayments are strong.
“This might signal room for higher rates but is itself, not a reason to raise them (rates),” he said.
