Worried when GST rolls in

The recent floods and hikes in fuel prices are making it hard for Malaysians to live a normal life in our society.

Many are forced to suffer in silence. The most hardworking among them are those in the lower- and middle-income groups who constantly struggle to eke out a living in what is often referred to by politicians as "our prosperous Malaysia".

Maria (not real name) is a homemaker with three young children.

Her husband Yusoff, works in an electronics factory as an operator. He works hard for his salary which comes up to RM850 a month.

As you can imagine, the amount is hardly sufficient to meet the needs of his family.

Working overtime is the only alternative for them to get an extra RM300 or RM400 to pay the bills.

Increasing living costs has put a lot of stress on Maria. She has to struggle and juggle with whatever income they get to support her growing family’s needs.

Their children are aged two, four and six.

They still depend on milk as a major part of their nutrition. There is also the cost of nappies which is a must, especially for their youngest child.

Previously, Maria could buy the monthly groceries from the nearby supermarket at the total cost of RM250. This was up until last year.

Today, however, the prices of food generally have increased to nearly double the amount just for basic expenses. And there is simply no option to this requirement.

To make matters worse, their rented flat owner just raised the rent to an extra RM100. He said he had no choice but to do it because of the goods and services tax (GST) which goes into effect this week.

While the government may claim that the GST is "a good thing for the nation", for Maria and her family, they honestly don't see how. For them it will be a living nightmare.

"My children often get sick due to the weather," she lamented.

"All I was able to do is just about afford the over-the-counter medicine previously. Now I am worried the clinic’s fee – including consultation with a doctor – per visit will be too expensive not only to the children but to our family as well," she added.

Maria was also extremely worried if her efforts in tightening the family's belt further will be enough not only to survive GST but also to tackle with coming inflation which the government warned about.

She already feels weak in the knees thinking of her eldest son who would start schooling next year. Prices of school bags and uniforms, stationery and others only sends cold shivers through her spine about whether or not her family will be able to afford them.

Sixty-year-old Lim is also seriously worried about his and his family's immediate future with GST.

He was recently diagnosed with heart disease. He needs a heart surgery soon. The doctor suggested to get it done in a private hospital due to the long waiting list in a government hospital.

His surgery will require RM20,000.

Lim's food stall is his only source of income. With his condition, he is also very worried that he will no longer be able to run his small-time business.

The fuel hikes with goods prices spiralling upwards left Lim with no choice but to increase the prices of his food and drinks in order to survive.

However, with GST around the corner, there is a very serious concern that inflation will deal a heavy blow on his business and affect his chances of ever having an early operation for his heart condition.

His only son is now in college. His wife is also a diabetes patient. Life seems very uncertain for all of them now.

Fourteen-year old Jaya lives with her mother who is a single parent and also struggling hard to make ends meet. The latter works as a part-time maid for several homes in the neighbourhood.

During school holidays, Jaya, together with his younger sister Piya, would join their mother in order to cover more homes so that they can earn a little extra for the family.

They need at least RM600 for school fees, books and stationery. The girls skipped worrying about their uniform expenditure as they were lucky to be able to still fit into their previous year's clothes.

However, their school teacher warned them that they would have to pay for GST on the stationery and note books starting from next month.

The teenager is knows that with her mum's income being insufficient to support both her sister and her, she would now have to start working permanently so that at least Piya will be able to continue with her education.

The stories of Maria, Lim and Jaya will become a common problem for Malaysians like them when GST rolls in, and companies start to make profits at the expense of the peoples' welfare, said Parti Sosialis Malaysia.

The political party together with the "No GST coalition" have been holding several awareness-raising roadshows on the GST and its "tremendous negative impact on the poor" in various states in the country since last year. – March 30, 2015.

* This is the personal opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insider.