By: Khor Koh Wai
Nanyang Siang Pau, October 07, 2014
The petrol price used to be RM1.10 per litre in 1990; today it has gone up to RM2.30 per litre. The price hike is not outrageous considered it has only increased RM1.20 in the past 14 years, while the rise in good prices is more than RM1.20 in 14 years. Each time when the petrol price is increased, prices of goods will follow suit; but when the fuel price gone down, the prices of goods would never be reduced.
Although petrol price is fluctuating whereas prices of goods tend to go up and never come down, the middle class in urban areas will feel the pain and become furious whenever the fuel price is raised.
This is because there is a problem in our wealth distribution structure, the middle class is always those who “pay the most and get the least”.
Pay the most and get the least
The middle class in Hong Kong has groaned on high cost of living and sharp increase in housing price and rental. But over here the local middle class is worse than those in Hong Kong, because apart from facing the same problems of high cost of living, the middle class here has to face with another problem in high maintenance cost of vehicles, petrol price hike and toll hike due to the imperfection of public transportation system.
With prices of houses and goods are rising steadily, may be the middle class would be wondering: Am I still in the middle class?
When the government declaimed the progress towards the high income nation, perhaps many urban dwellers are worried that they belong to the group who “pay the most and get the least”, how long can they hold out?
Improving transport system should be given priority
It is imperative for the government to look into the predicament of the middle class, not only the existing residents in the urban areas, but also those “new immigrants” who continue to migrate from villages to the cities.
The BR1M can’t solve their livelihood problems, because they are also puzzled on their future.
It is heartening to hear that the government has planned to lower the personal income tax of the middle class. This is a good start. It will be a greater help to the middle class family if tax exemption can be granted to those who have to take care of their children and elderly parents.
Nevertheless, this is not the only thing the urban middle class has demanded. In terms of practicality, the middle class have many requests, the priority being the improvement in the transport system, only when the transport system is improved then the reduction in fuel subsidy will be with significant.
Without a solution to the urban middle class problem, high income nation will only be a mirage.
Original Source: “中惨”阶级能撑到高收入国吗？