Page 5 - Berita Sunway - Issue 67

In the Budget 2020, the government announced the increase
AFFORDABLE HOUSING WOES of the minimum wage rate to RM1,200 effective January 1, 2020
in 57 cities and municipalities across Malaysia.
When talking about the cost of living, one cannot avoid “We need to raise our income level, and raise productivity
discussing asset prices such as house prices and car prices, to move up the value chain so that employers can pay higher
said Yeah. wages. This will allow us to not compete on cost but on product
“In Malaysia,we have experienced double-digit increases for or services value-added features. But this boils down to skills
over 4 to 5 years consecutively between 2011 to 2018, which of and technological capabilities. We need to continue investing
course has an impact on affordability because income increases into R&D and innovate,” said Yeah.
lag behind house price increases. Property is a key area that Enhancing the skills and educational level of the workforce
pushes up our cost of living,” he said. are other keys to improving opportunities and higher paying jobs,
While housing prices have eased off in recent years with the he said. ON THE COVER
rate of increases turning negative for some property segments, Employers also need to adopt a more humanistic,
the current price level is still very high, Yeah said. compassionate approach towards remunerating employees by
The MEM report highlighted that the lack of affordable focusing on stakeholders and the United Nations Sustainable
housing is severe among households earning less than Development Goals (SDGs) instead of solely profits, said Yeah.
RM5,000, with 55% of households from Corporations should focus on training and incentivising staff
this income bracket in KL and 63% in for upskilling.
Petaling District lacking access to
affordable housing.
In October, Bank Negara SUNWAY DOES ITS PART
said that houses in Malaysia
were considered unaffordable Addressing the issue of home affordability, Sunway Property
by international standards, launched its 'Super 5' easy home ownership scheme last year to
adding that there is a ease home ownership for Malaysians. Offering 95% guaranteed
mismatch between the growth financing for eligible buyers, the scheme allowed purchasers to
in income and growth in the pay RM5,000 to own a unit, waived stamp duty and an interest-
property prices in the market. free flexi instalment plan for 24 months for the differential sum.
“Among the main challenges Malaysians face in purchasing
PROFESSOR YEAH KIM LENG property are loan rejection from the bank, inability to pay the
Sunway University Business School Professor of Economics upfront cost when purchasing a property and inability to obtain
and Economic Studies Programme Director at the Jeffrey the loan margin that they want. On top of the scheme benefits,
Cheah Institute on Southeast Asia we also engaged a third party to conduct a financial health check
for our customers and to advise customers on how to plan their BERITA SUNWAY | JAN—MAR 2020
financing,” said Sunway Property Marketing and Sales General
RISING FOOD PRICES Manager Wendy Wang.
As a result of the campaign, Sunway Property saw an year-
on-year increase of over 30% in sales. Following the success of
Figures from the Department of Statistics Malaysia’s the 'Super 5' campaign, Sunway Property rolled out 'Yours 2020'
Household Income and Expenditure Survey 2014 showed that campaign early this year.
Malaysians spend an average of 30% of their household income Sunway Education Group (SEG) is also doing its part to help
on food, with those living in the rural areas and income group students address the rising cost of living by offering scholarships
below RM3,000 spending almost 40% of their income on food. to needy students, as well as boosting financial literacy among
According to Federation of Malaysian Consumers students.
Associations (FOMCA), the prices of local food items have been With over 30 different types of scholarships catering to
rising due to monopolistic practices in the supply chain. requirements ranging from academic excellence to financial
Malaysia’s weak ringgit currency exchange rate also neediness, SEG has many need-based scholarships to
drives up the prices of imported food, which adversely affects provide financial support to individuals from underprivileged
consumers. Food imports are also subject to international communities with access to quality education.
market demand and supply, and subsequently sudden These include the Jeffrey Cheah Foundation Community
price shocks. Scholarship that is offered to children from NGOs and welfare
Yeah believes that the government will need to enhance homes. The scholarship covers full tuition and other general
agricultural productivity and yield by adopting advanced fees, on-campus accommodation, book allowance, monthly
technology to improve the country’s food sufficiency if it were to allowance and pocket money of RM400 per month.
address food prices in the long term. As of 2019, Jeffrey Cheah Foundation has disbursed more
than RM482 mil worth of scholarship and grants to thousands of
qualified and deserving students.
MEASURES TO TACKLE RISING COSTS Sunway Education Group Director of Student Life Lee Siok
Ping said SEG also engaged financial planners to run financial
In October 2019, the Malaysian government launched literacy workshops for students, to give them an idea about
the Shared Prosperity Vision (SPV) blueprint, with the aim of financial planning and investment. “This long-term initiative is
providing a decent living standard for all Malaysians, regardless in line with the Jeffrey Cheah Foundation’s founding principle of
of ethnicity, social class and location by 2030. Among the SPV’s giving back to the society by providing educational opportunities
developmental objectives are to address inequalities such as to improve an individual’s quality of life and break the cycle of
wealth and income disparities to narrow the economic gap poverty,” she said. 5
between different income household groups.