Charles Santiago
Malaysia may soon qualify as a high-income nation, based on gross national income (GNI) per person.
But if 70% of households do not feel any richer, perhaps it is time to ask whether we are measuring economic success, or simply averaging it.
The Khazanah Research Institute (KRI) found that many households still face a monthly shortfall, after covering basic expenses.
When income can’t meet necessities, ‘buy now, pay later’ (BNPL) is not a spending habit. It becomes a coping mechanism.
The Ministry of Finance says BNPL loans make up only 0.3% of household debt, and most transactions are small, around RM91 on average.
Yet over 70% of active BNPL users come from low-income households. That suggests BNPL often fills short-term cash flow gaps, rather than funding luxury spending.
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Gross domestic product (GDP), GNI and foreign investment tell us how the economy is growing.
Household incomes, savings and financial security tell us how that growth is actually being felt.
The two don’t always move together. So public policy should pay equal attention to both.
The real test of a high-income economy is not GNI per person. It is whether families can pay for housing, food, healthcare and education without falling into debt.
Prosperity should show up in household resilience, not just national averages.
The KRI reminds us that growth alone does not improve household welfare. The National Wages Consultative Council reminds us why.
The next step is clear: build institutions that ensure productivity gains are shared with workers, through stronger wage progression and collective bargaining.
Charles Santiago is a prominent Malaysian politician, economist and human rights advocate who served three terms as the MP for Klang and has twice chaired the National Water Services Commission.
The views expressed in Aliran's media statements and the NGO statements we have endorsed reflect Aliran's official stand. Views and opinions expressed in other pieces published here do not necessarily reflect Aliran's official position.
- Tegakkan maruah serta kualiti kehidupan rakyat
- Galakkan pembangunan saksama, lestari serta tangani krisis alam sekitar
- Raikan kerencaman dan keterangkuman
- Selamatkan demokrasi dan angkatkan keluhuran undang-undang
- Lawan rasuah dan kronisme
