QUOTE(icemanfx @ May 3 2025, 01:50 PM)
Contemporary history show, raising minimum wages will increase inflation rate. Real purchasing power will returned to as before.
Purchasing power and prc flooding local market with cheap product is different matters.
As a economic student, purchasing power is always part of my study.
Ya kah ...good for u Purchasing power and prc flooding local market with cheap product is different matters.
As a economic student, purchasing power is always part of my study.
U never heard of Imported Inflation ?
a) What if it is imported deflation then, through cheaper imports from China.
b) China is facing deflation coz most people do not want to spend their money , hence no high demands for goods etc
c) Take Spore for example , with higher pays , they can choose to spend their money in Malaysia. Or do shopping through Internet.
Spore Restaurant businesses are quite bad overall .
Well, I am from Certified Financial Planner school.
There are always alternatives or solutions available for most people if they choose to live a comfortable livestyle vs a A High end one , in order to maintain a reasonble Lifestyle with same purchasing power .
1) Well , Malaysians are well known for wearing simple T shirts , shorts and slippers . So it is acceptable to most of us. No need to upgrade this kind of lifestyle just with higher pays to project a higher image
2) For those travel more on MRT LRT to work ( with rm 50) , no need to buy a brand new SUV just coz of a payrise . Or maybe buy a good second hand car will do ..
3) Even with payrise, no need to buy a property at Parkcity ...Many claim CBJ properties are dirt cheap ..hence where got drop in purchasing power if u buy one at CBJ ?
4) Even with payrise, U can stop drink Coffees at Starbucks, Go for Zul maybe
5) Malaysia family is known to have many cars at home, why buy more coz of pay increase ?
6) Malaysians tend to over eat ...does not mean need to eat more expensive foods with a payrise
7) Cheap petrol to travel around , but many choose to travel overseas few times a year
8) Do some home cooking too
9} Save more , instead of spending away . Lets compounding effect works for u like EPF.
Conclusion > Inflation in a way is Men created ...with extra high demands from payrise, But u save more and spend less , not much inflation effect
This post has been edited by SKY 1809: May 3 2025, 03:38 PM
May 3 2025, 03:07 PM

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