PETALING JAYA: A recent study done by a US-based corporation that said Malaysia is regarded as an excellent place for retirement for less than RM9,000 a month is not entirely true.
With food and rental prices on the rise after the Covid-19 pandemic, some Johor Baru, Kuala Lumpur, and Penang folk are saying that a household income of about RM10,000 is needed to live a comfortable life.
In Johor, private tutor Sherlyn Teh, who just got married last year, said her household and personal expenses amounted to about RM8,000 each month.
“My husband and I consider ourselves quite lucky to have a household income of RM10,000, which is just nice for both of us.
“The bulk of it goes into servicing the loan for our house and two cars. After paying petrol, bills and for groceries, we can still set aside some money for personal savings and for our parents,” the 35-year-old said in an interview.
She added that eating out at cafes and restaurants is not an issue for them but they still make it a point to avoid going to places frequented by tourists.
“The prices at many eateries in Johor Baru have gone up a few times since the Malaysia-Singapore border reopened in 2022 after the pandemic and it now costs more to eat out,” she said.
Norshikin Mohd Salleh, a mother of three, said a household income of RM10,000 is not enough for her family in Johor Baru as they are already spending a similar amount on their monthly expenses.
The 41-year-old who works in the private sector said her household expenses include about RM1,000 for groceries, RM3,400 for car and housing loans, RM700 for Internet and utility bills, RM1,000 for investment, RM500 for her children’s education expenses and RM300 for petrol.
“This is not including other expenses like eating out – which we often do – shopping for clothes, car servicing, my children’s tuition fees and extracurricular activities, as well as emergency funds.
“We also go for family vacations locally every school holiday for us to spend some quality time together,” she said.
A study done by US-based financial services corporation Nasdaq said Malaysia is regarded as an excellent place for retirement as the country ranked first in a list of 10 safest places to retire to in Asia for less than US$2,000 (RM9,121) a month.
It said Malaysia, with a 1.471 global peace index and an average monthly cost of living of US$1,066 (RM4,861), topped the list, followed by runner-up Kuwait. The study used figures in the Global Peace Index 2022 Report from the Institute for Economics and Peace, and from Numbeo, a database of user-contributed information about cities and countries worldwide.
In Kuala Lumpur, Linda Chiew, 35, said the cost of living in the city has increased as prices have risen, and the family has had to cut back on some activities.
The monthly expenses for an eight-person household are about RM10,000, she said: house loan RM3,400, auto loan RM700, daughter’s school fees RM460, petrol RM600 (for two cars), food-related expenses RM2,200, phone bill RM140, utilities RM600, broadband RM150, and insurance RM900.
She said that to live comfortably in Kuala Lumpur, she would need to boost the family income by another 20% to save for her daughter’s future education.
A housewife who only wants to be known as Low said she and her husband have had to live more frugally since having three children. Their monthly household expenses are RM12,000, she said.
She said some of the comes from going out to dinner for every family member’s birthday and booking domestic trips for holidays.
“We’ll go to a recreational farm or picnic outside to let the kids enjoy nature.”
“We’re not rich, but I’m comfortable now,” she adds.
In Penang, single mother and restaurant manager Fion Chiang, 47, is hoping for a 30% increase in her monthly salary of RM3,000 in order to make up for the rising cost of living.
She has two sons, 19 and 26. The youngest is pursuing tertiary education while the eldest is working in Kuala Lumpur.
“We are able to still make ends meet with our combined income of RM7,000.
“In order to live comfortably, though, we need to get another RM3,000,” she said.
