One of the key functions of government is the protection and enhancing of consumer wellbeing. But what are the factors that influence the rakyat’s well-being? FOMCA would like to suggest 12 factors that need to be given consideration in any effort to enhance society’s wellbeing.

1. A fair wage. Bank Negara has suggested the concept of a “living wage” which constitutes the minimum income needed by households, beyond the basics of food, clothing and shelter, to participate in society for personal and family development, and freedom from severe financial stress. It research indicated that a couple with 2 children would need RM 6,500 a month, couple with one child would need RM 4,500 per month and a single adult would need RM 2,700 per month. About one third of households in Kuala Lumpur were living below the minimum standard of living in 2016. Those earning below the living wage were mostly secondary school graduates with low to mid-skilled jobs, while those earning above the living were mostly graduates with high-skilled jobs. These findings underscore the importance of creating a high skilled workforce that is equipped with the necessary skills for high-paying jobs.
2. Affordable Food. Especially for the poor, who spend a substantial part of their income on food and essential items, the increasing price of food has had a devastating effect on their wellbeing. FOMCA believes that efforts by the government to liberalise the market through the Competition Law, would result in benefits to the consumer through lower prices, better quality and more choices. Currently, we believe that there is significant price manipulation through collusion and other forms of monopolistic behaviour resulting in higher food prices.  Freeing both the local and the import market could have substantial price savings for consumers. We are also excessively dependent on food imports. We need to refocus on food crops to ensure greater food self-sufficiency and better control of food prices.
3. Affordable housing. It is clear from Bank Negara as well as the Khazanah Research Centre Study that houses being built are being priced way above the ability of consumers to pay with the income that they are receiving. Developers build over-priced houses and then push banks to take the risk of giving a loan to those who may not have sufficient income to service their mortgage payments as well as put pressure on consumers to borrow above their ability to pay must be stopped by the regulators.  The regulators need to make stronger efforts to ensure that house prices match consumers’ income.
4. Accessible and Affordable Public Transport. Transport makes up a major portion of the households expenses of low and middle-income families. While in the Klang Valley the LRT/MRT system provides a crucial backbone of the public transport system; the last mile of the public transport system, that is the bus system, is still terribly inefficient and unreliable. Nationwide, both in major towns and small towns, the bus system is generally inefficient and unreliable. Often this would force consumers to use private cars. It is estimated that households spend about 20 to 30% of their disposal income on private transport – instalments, petrol, services, maintenance, road tax, insurance, tolls and parking charges. An efficient public transport would contribute substantial savings to the households.

What consumers expect from an efficient public transport system is reliable services, shorter commute time, clean and comfortable buses and updated and reliable information on bus routes and bus arriving times and if possible some conveniences such  as walkaways.

5. Accessible and affordable healthcare. Health care inflation is estimated at 15 to 20%. While Malaysia does have an excellent public healthcare system, overcrowding and lack of resources in the public healthcare system results in long waits to see the specialist and sometimes shortage of beds to admit seriously ill patients. This has often resulted in consumers going to the private healthcare which can be extremely expensive. On one side the government is under-investing in public healthcare resulting is shortages and long waits. On the other hand about 40% of consumers pay hospital bills from their pockets, as they have no medical insurance. Thus there is indeed great concern among Malaysian consumers, especially the low and middle income, on how to face illnesses and medical emergencies as they find waiting to see the doctor in public hospitals too long while private hospitals are prohibitively expensive.
6. A safe and secure community. The National Community Policy can play a significant role in creating space for the voice of consumers so that they provide views and feedback on community issues that have a direct effect on their well-being. On the other hand, consumers also can play a bigger role in the security and development of their community. In too many communities, vandalism, destruction of public property such as lifts and playground amenities, unhealthy environment for example that enables the breeding of the aedes mosquito, haphazard parking, and irresponsible dumping of rubbish continue to occur. Continuous awareness and education is crucial. So is effective enforcement, especially for those who are too stubborn to change. Consumers need to take greater responsibility for their safety and for the cleanliness and development of their community. FOMCA also hopes that beyond the basic needs of the community, developmental programs and activities can be developed. This could include youth sports and recreation centres, child care services, mental health support services, and support for the aged.
7. Access to safe and reliable water supply and energy. There are still communities with no access to water and/or electricity. Further some communities, face frequent water shortages causing great difficulties and inconvenience to consumers. There is therefore an urgent need to implement an integrated water resources management plan for effective water governance.
8. Assistance in childcare. Childcare is simply becoming more expensive. With two income families, as well as the loss of the extended family system, current families are dependent on private services to take care of their children. Additionally, school going children also place tremendous financial pressures on families, especially on low-income and middle-income families. Initiatives are needed especially to assist low income families in supporting child care and child education expenditure.
9. Social safety Net for the Poor. The social safety net is a collection of services provided by the state including welfare, unemployment benefit, universal healthcare, education support, homes, and sometimes subsidized services such as public transport, which prevent individuals from falling into poverty or extreme suffering. The social safety net is targeted at poor and vulnerable households to protect them from economic pressures, especially increasing costs of living. It is high time that Malaysia had a comprehensive social safety net. There are indeed many ad-hoc measures by various institutions; however, a comprehensive social safety net in Malaysia is still lacking.
10. Comfortable retirement savings. Malaysia is ageing, and the population over 65 should come to 15% of the population by 2035. For many Malaysians, the only saving they have for retirement is their Employee Provident Fund (EPF) savings, yet for most Malaysians the savings in EPF is barely enough for a decent life after retirement. EPF would suggest that the minimum savings target by age 55 is RM 228,000. However, only 18% of EPF members have this much. More than 68% of members aged 54 had less than RM 50,000 is savings which is estimated to last only 4 ½ years. The bottom fifth of EPF members have average savings of only RM 6,909. There are 14.5 million active EPF accounts.
11. Consumer Empowerment. To face these challenging times, consumers need to understand the workings of the market; how the market works, how prices are determined and the limitations of the government role in determining market prices. Consumers should more importantly realize that they are not helpless or victims of the market. They can make choices, at least to some extent, to manage their consumption and expenditures. Through their purchasing patterns, to some extent at least, they can influence the market. The purpose of consumer education then is to empower consumers with the knowledge, skills and the right mindset to face the challenges in the market. Through consumer education, consumers would learn how to better manage their consumption and their expenditure patterns. Consumer education would emphasize on practical steps and measures that consumer could do to reduce expenses. Example of practical measures would include price comparisons, changing from branded to generic products, consuming more fruits and vegetables rather than processed food and planning your purchases when one goes shopping.

Another important component of consumer education would be personal financial management. The purpose of financial education would be to empower consumer in their management of cash, savings and investment and in managing their debts. 

12. A Healthy and Safe Environment. The environment - land, water, atmosphere/air, minerals, plant and animal life - plays a tremendous role on the well being of social communities and hence affects us all. A healthy life that is supported by clean air and water, safe living areas with good sanitary conditions, sufficient and healthy foods is everyone’s right. When the environment becomes degraded and polluted, it affects all either in the short or long run regardless of our social and economic status. We all strive for an improved quality of life, significant reduction of environmental risks and ecological scarcities. Our children are also entitled to better opportunities and healthy and happy lives. As such, the need for economic development, social justice and a healthy, sustainable environment cannot be taken for granted.