Government Moots Index To Measure Cost Of Living


(Bernama pic)BANGI: The government has proposed an index to accurately measure cost of living to assist employers in determining the right salary increase
Finance Minister Lim Guan Eng said the current consumer price index (CPI) did not portray the actual situation as it comprised several other factors, including an estimate on business production cost and input cost
“What is intended will not be achieved if we still use CPI as a reference point to determine the amount of salary hike,” he said at the launch of “Belanjawanku – Panduan Perbelanjaan untuk Individu dan Keluarga di Malaysia” today
“I have brought this matter to Bank Negara Malaysia
“Maybe the EPF can do the same because at least there are two models to compare the indexes, to accurately measure the cost of living,” he said
Belanjawanku provides the minimum measurement of monthly expenses on various goods and services needed by households in the Klang Valley to achieve a comfortable standard of living
It also provides an overall guide, including on the provisions of basic needs, social involvement, recommended savings, social repayment and the practicality of managing expenses
At present, Belanjawanku takes into account the household spending in the Klang Valley but will be expanded to other states soon
Meanwhile, Employees Provident Fund CEO Tunku Alizakri Alias said the creation of such an index would be a good first step in terms of social security infrastructure
“I am really hoping that the data we have collected will be able to go to policymaking
“I emphasise that this is not prescriptive in the sense that it should be an indicative and input point in the development of this index,” he added. - FMT

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