Latest news with #OhEiSun
CNA
3 days ago
- Business
- CNA
CNA938 Rewind - France is first European country Singapore has CSP with
CNA938 Rewind Play France and Singapore will grow cooperation in areas like civilian nuclear energy, intelligence sharing and defence technology. This upgrades the two nations' relationship to a comprehensive strategic partnership (CSP) – marking Singapore's first CSP with a European country. Lance Alexander and Daniel Martin speak with Dr Oh Ei Sun, Senior Fellow, Singapore Institute of International Affairs.
CNA
3 days ago
- Business
- CNA
CNA938 Rewind - France and Singapore enter a comprehensive strategic partnership
CNA938 Rewind France and Singapore will grow cooperation in areas like civilian nuclear energy, intelligence sharing and defence technology. This upgrades the two nations' relationship to a comprehensive strategic partnership (CSP) – marking Singapore's first CSP with a European country. Lance Alexander and Daniel Martin speak with Dr Oh Ei Sun, Senior Fellow, Singapore Institute of International Affairs.
New Straits Times
02-05-2025
- Business
- New Straits Times
Cost of living in Malaysia rises moderately despite low nflation
KUALA LUMPUR: Malaysia's cost of living, as indicated by the Consumer Price Index (CPI), is on the rise, influenced by global economic uncertainties and domestic policy challenges. However, inflation remains relatively low. In March 2025, Malaysia's inflation rate eased to 1.4 per cent, slightly down from 1.7 per cent in January and 1.5 per cent in February, according to the Department of Statistics Malaysia (DOSM). The CPI rose to 134.1 points in March, compared to 132.2 points in the same month last year. DOSM reported that this year's rising cost of living is primarily driven by price increases in several categories, including food and beverages, accommodation services, personal care, education, and insurance and financial services. Economists suggest that this trend reflects a delicate balancing act between external economic pressures and Malaysia's efforts to stabilise its domestic market. To address the rising cost of living, Dr. Oh Ei Sun, Senior Fellow at the Singapore Institute of International Affairs, calls for comprehensive structural reforms to ease the financial burden on citizens. He emphasises the necessity of reducing regulatory burdens by reforming tax and subsidy systems, enhancing public services, and simplifying compliance processes. These measures aim to bolster productivity, foster competition, and fortify economic resilience. Dr Oh said that Malaysia's heavy reliance on imports for essential goods, particularly food and energy, makes local prices susceptible to global market fluctuations. He said that this dependence exposes Malaysia to international price volatility, affecting domestic costs. Fluctuations in global fuel prices and a weakened ringgit further exacerbate the cost of imported goods, impacting daily expenses, he told Business Times. Retailers and businesses, facing increased operational costs, often pass these expenses onto consumers, contributing to the overall rise in living costs, he said. Dr Oh warns that as worldwide prices increase due to geopolitical concerns, local prices are likely to follow suit. He said that by implementing structural reforms, Malaysia can work towards achieving high-income status and improving the standard of living for its citizens. Bank Negara Malaysia (BNM) has emphasised the importance of continuing structural reforms to achieve high-income status, despite short-term risks such as potential global trade wars and rising geopolitical tensions. The central bank maintains its economic growth forecast for 2025 between 4.5 per cent and 5.5 per cent. It anticipates sustained strong economic activity driven by domestic demand and manageable inflation despite external uncertainties. The World Bank's Economic Outlook for Malaysia indicates a moderation in economic growth to 3.9 per cent in 2025, with headline inflation expected to increase to 2.6 per cent. This reflects several domestic policy reforms amid moderating cost conditions, mainly due to lower commodity prices . Challenges faced by households According to Dr Oh, food expenses alone can constitute up to 20 per cent of household income, rendering price increases in this sector especially burdensome. He noted that inflation in Malaysia tends to be gradual but persistent, often outpacing wage growth and leading to affordability challenges for many households. "So when worldwide prices of these rise, local prices rise as well," he said. Government measures, such as subsidies, have been implemented to mitigate these challenges. However, fiscal constraints have led to a shift towards targeted subsidies, aiming to reduce expenditure and minimise leakages. Despite these efforts, wage levels have not kept pace with the rising cost of living, with many workers experiencing stagnation despite increased expenses. Additionally, he said that speculative activities in the property market and the phenomenon of price stickiness—where prices remain elevated even after initial hikes—exacerbate the situation. "Evidently the levels of wage rising are not enough. The cost of living rose manyfold over the past decades, but wages are still stagnating at similar levels to the end of last century," Dr Oh said. "Inflation tends to creep in Malaysia. Although it doesn't spike suddenly, people feel prices of essential goods and services rise steadily, much more than their incomes rise. So it's a question of affordability." Dr Oh said the impact is particularly severe on lower-income households, which allocate a larger share of their income to necessities, leaving little room for savings. He emphasised that the levels of wage increases are not sufficient, as the cost of living has risen significantly over past decades, while wages remain relatively stagnant. Dr Oh pointed out that sectors like food and accommodation are experiencing above-average price increases, intensifying the financial strain on these communities. To cope with rising living costs, he advised individuals to reduce non-essential spending, though this approach can diminish quality of life. Economist: Malaysia's inflation rate lowest among Asean nations Putra Business School economic analyst Associate Prof. Dr. Ahmed Razman Abdul Latiff said Malaysia's inflation rate is considered among the lowest compared to other Asean nations. He attributed the rising cost of living to a combination of external factors, such as global economic uncertainties, and internal factors, including domestic policy challenges. External factors like climate change have disrupted agricultural yields, leading to increased food prices, while geopolitical tensions have contributed to supply chain disruptions, further elevating costs. At home, a weaker ringgit has made imports more expensive, affecting the prices of essential goods and services. Dr Razman also observed that domestic factors, including increased material costs and heightened consumer spending, have put upward pressure on prices. He anticipates that the cost of living in Malaysia will continue to rise annually. Dr Razman emphasised the necessity of long-term solutions, such as monetary system reforms and initiatives to boost income levels, to address the underlying issues contributing to the increasing cost of living. The government's decision to raise the minimum wage from RM1,500 to RM1,700 in February 2025 aims to improve income levels. However, Dr Razman pointed out that many workers still lack the bargaining power to negotiate better wages, and the increase may not be sufficient to offset the rising cost of living. He highlighted that wages have been increasing gradually on a yearly basis, but such increments among low-level wages are not enough to cover the rising cost of living. "The rising cost of living not only caused the lower-income households to have very minimal disposable income but also caused some to resort to taking debts to survive," he said. Dr Razman noted that the increase in food prices plays a significant role in the overall cost of living in Malaysia, as food costs constitute a substantial portion of the inflation rate calculation. In response, the government has implemented price controls on basic goods and services, such as rice, cooking oil, and electricity tariffs, to keep inflation in check. Efforts are also underway to rationalise subsidies, focusing on targeted assistance for lower-income groups through programs like Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA). Riding the wave Samuel Tan, chief executive officer of Olive Tree Property Consultants, said that imported inflation is a key factor driving the rising cost of living in Malaysia, particularly when the ringgit weakens against the currencies of exporting countries. This causes the prices of imported goods to rise. "The weakening of the ringgit against foreign currencies contributes to imported inflation, making imported goods more expensive. This has a significant impact on the cost of living in Malaysia, especially for items that rely on foreign sourcing," he explained. Tan pointed out that sectors such as housing, food, and transportation have experienced the most significant price increases. Additionally, occasional hikes in utility tariffs further add to the financial strain. Urban areas, such as Kuala Lumpur, Johor Bahru, and Penang, have felt these price increases more sharply than rural areas, he added. "As the prices of individual components rise, the ripple effect results in higher costs across various sectors. This interconnectedness means that price increases in one area often lead to higher prices in others," Tan said. Tan said that as the prices of individual components rise, the ripple effect results in higher costs across various sectors. This interconnection means that increases in one area often lead to price hikes in others. "The government is working to reduce the cost of doing business by eliminating unnecessary costs and taxes, which ultimately burden consumers. There should be a strong focus on sourcing products and services locally to mitigate the impact of imported inflation. "For vulnerable groups, such as the poor and marginalised, the government provides cash assistance or vouchers to help offset rising expenses," he said. Tan noted that wages have not kept up with the increasing cost of living. "Wage growth typically follows improvements in productivity and profitability, but not all companies are adjusting wages to align with rising living costs. Some businesses offer Cost of Living Allowances (COLA) for employees transferred to areas with higher living expenses, but this is not consistent across the board. "Lower-income households, particularly those in the B40 (Bottom 40 per cent) income group, are the hardest hit. This group, with households earning up to RM5,249 per month, benefits from various government subsidies and assistance programmes. "However, the M40 (Middle 40 per cent) group, which earns between RM5,250 and RM11,819 per month, faces a particular challenge, as they receive fewer subsidies and their income often falls short of meeting rising costs. Greater support for this segment is needed," he said. He pointed out that as of 2024, Malaysia has a relatively lower cost of living compared to many other Asean countries. While Malaysia provides a good balance of affordability and quality of life, regional differences in costs—particularly for housing, transportation, food, and healthcare—should be considered when comparing various locations, he said. In terms of steps to be taken to mitigate the effects of rising living costs in Malaysia, Tan said, "Financial literacy should be taught from an early age, ideally integrated into school curricula, to help individuals plan their finances effectively. As people grow older, they can learn to spend wisely and pursue financial independence by diversifying income sources through side businesses, investments, and savings. Building a savings habit is essential for managing unexpected events and ensuring financial stability." Tan added that young Malaysians face challenges in raising the initial deposit for homes due to escalating house prices. While government schemes exist to help bridge the gap, the rising cost of homes is still a barrier for many. Tan said state governments should prioritise the development of affordable housing options, and financing should be made more accessible for qualified individuals. Renting may be a more flexible and realistic option for many until they can afford homeownership, he said.
Malay Mail
01-05-2025
- Politics
- Malay Mail
Singapore GE2025: Final campaign sprint heats up as voters weigh cost of living and job security
SINGAPORE, May 1 — With just days to go before polling, political parties contesting Singapore's general election (GE2025) are ramping up efforts to win over more than 2.75 million eligible voters. Since campaigning began following the close of nominations on April 23, parties and candidates have launched full-scale outreach efforts — including house visits, walkabouts, podcast appearances, political party broadcasts, social media campaigns, and the highly anticipated return of physical rallies, which were last held during GE2015. The rallies — held during lunchtime (12 pm to 3 pm) and in the evenings (7 pm to 10 pm) — have drawn sizable crowds. The Workers' Party (WP) has been particularly successful in attracting large turnouts, with its venues reaching maximum capacity for at least two consecutive nights. These events are also livestreamed on social media platforms, including by mainstream media, garnering strong online viewership. Pacific Research Centre of Malaysia's principal adviser, Oh Ei Sun, observed that social media had been used for political propaganda well before the official campaign period, and noted that the opposition appears to have greater access to mainstream media this time. 'It remains to be seen if all these would have an impact on the election,' he told Bernama. Workers' Party Secretary-General and Leader of the Opposition Pritam Singh speaks during a rally ahead of the general election in Singapore April 24, 2025. — Reuters pic The cooling-off period begins at midnight on May 2 and lasts until the close of polls, during which all forms of campaigning are prohibited. The police have issued permits for 11 rallies to six parties and one independent candidate on the last day of campaigning on May 1. Bread-and-butter issues such as the cost of living, housing, job security, as well as the Goods and Services Tax (GST), have taken centre stage in rally speeches. At times, pointed criticisms of rival parties and candidates have added drama to what is typically a civil political discourse in Singapore. Helmi, 60, a voter in the five-seat Tanjong Pagar Group Representation Constituency (GRC), said he believed Singaporeans tend to be pragmatic when deciding on the country's and their children's future. He and his wife, Angela, took leave from work to attend a rally, saying it was an opportunity not to be missed, as it allowed them to get a sense of the 'pulse' to listen and get up close to the candidates. 'The cost of living is an issue because I help in social services, and I see that there are people — not many, but still — who are struggling. While the majority might be able to cushion the cost of living and inflation in the short term, we must not forget those in the lower-income group who may not have that capacity. 'Who I choose is the one that I believe will take care of these people,' Helmi said, adding that his mind is already made up ahead of the May 3 polls. The father of two said party manifestos, speeches, and track records were key in shaping his decision. Supporters of the People's Action Party (PAP) attend rally ahead of the general election in Singapore April 26, 2025. — Reuters pic It's a different story for Bala and Merchan, who are still undecided about whom to vote for. Both working in the finance sector, they said all three — the candidates, the parties, and their manifestos — are equally important in making their decision. 'I've not read all the manifestos, but I read everything that is reported in the media,' Bala said, adding that job security is his key concern. Meanwhile, for Merchan, it is about ensuring 'Singapore continues to be what it is today,' especially in terms of the economy. Singaporeans will go to the polls this Saturday, with 92 out of 97 parliamentary seats being contested. A surprise walkover for the ruling People's Action Party (PAP) occurred in the five-seat Marine Parade–Braddell Heights GRC on nomination day. In total, 206 candidates from 11 political parties and independents are vying for the remaining seats across 32 constituencies, comprising 17 GRCs and 15 Single Member Constituencies (SMCs). According to Oh, all eyes will be on East Coast GRC — where PAP had a narrow win in GE2020 — and several newly created SMCs, to see if the opposition can make further inroads after their absence in Marine Parade–Braddell Heights GRC surprised many. Workers' Party supporters attend a rally ahead of the general election in Singapore April 28, 2025. — Reuters pic Another hotly contested area is the newly formed four-seat Punggol GRC, which will see a straight fight between the PAP slate led by Deputy Prime Minister Gan Kim Yong and WP's team of four newcomers, including lawyers Harpreet Singh and Siti Alia. The five-seat Tampines GRC — won by PAP in GE2020 — is also expected to be closely watched, as it features a face-off between two Malay-Muslim figures: PAP's Minister-in-charge of Muslim Affairs Masagos Zulkifli and WP's Faisal Abdul Manap. Other notable mentions include Singapore Democratic Party (SDP) secretary-general Dr Chee Soon Juan, a perennial candidate and activist who has been part of the country's political landscape since 1992. In GE2025, he is contesting the newly created Sembawang West SMC. In the last election, PAP won 83 out of 93 seats, with the remaining seats going to the WP. Polling stations will open at 8 am and close at 8 pm on polling day, with results expected to start coming in after 10 pm. — Bernama
