Tuesday, January 29, 2008

Lulu's Wondering If These 130,000 ex-"Hardcore Poor" Are Feeling Any Richer Today

The PM announced that the percentage of hardcore poor in the country has decreased to 0.7% last year from 1.2% in 2004, according to initial statistics from the Economic Planning Unit's household income survey last year.

Have you heard of the Big Mac Index?
You can read more about it here, but in very simple terms, it looks at the price of a Big Mac around the world and measures the purchasing power parity (PPP) between two currencies.
Lulu thought she'd do her own lulu version of a Big Mac Index to look at the purchasing power of the hardcore poor of Malaysia.

Per the 9th Malaysia Plan, using the The Non-Food PLI [where the expenditure pattern of non-food components of the PLI are based on the actual expenditure of the bottom 20 per cent expenditure group derived from the household expenditure survey (HES). Non-food components comprise clothing, housing, transport and other items],
the Poverty Level income is as follows.

the lulu version would use the Curry Flavour Maggi Mee instead of the Big Mac as as the indicator, and would compare our purchasing power between last year and this year.
up till the end of Y2007, the 5pack curry flavour Maggi mee costs RM2.59
today, it costs RM2.89.

Taking the national average of RM691 poverty level income,
in 07, the family could have bought 267 packs of 5pack Maggi Mee.
today, in this "inflation is only 1.9%" nation of ours, the same family can buy only 239 packs with the same amount of money.

Lulu wonders, do those whom the PM considers as his success feel any richer today compared to last year?
Or are they feeling much, much poorer after 4 years of Abdullah Ahmad Badawi-ism?
Not sure about you, but Lulu does feel poorer per this Maggi Mee Index

4 comments:

Anonymous said...

Dear Lulu,
If I'm not mistaken, inflation went up again to 2 point something?
I stopped indulging in maggi. Feels like a luxury item these days... :(

wits0 said...

Very good index, Lulu, I like it! :)

Actually Maggi Mee, pack of five, in another State costs around RM3.30 at sundry shops, not 2.59 as in Wilayah area supermart.

This means that RM691 = 209 packets of the same.

In the same State outside, chap fun costs RM3 a pack, which translates into 230.33 packet.

Assuming a family of 4, each takes only 1 packet of Maggi Mee and 2 packeted Chap Fun each, this tranlates into RM2.60 for breakfast, and RM12 for the other two meals. In 31 days, this means approx. RM 452.60 for food alone.

That leaves RM238.40 that can't even pay for the rental of a decent house!

artchan said...

i don't think he knows what he said..he just regurgitates info from the 4th floor.

Sharing said...

Talking statistic again?
Why every time it only gives more support to tell him to go?
Do wonder if he ever pays to live or what is costing each and how much one needs to survive?
Or, in reality, how and where our stuffs are grown or raised?

May be to him and many top officers
Chicken are something in the bag?
Or, Rice in sac?
Sugar are granulates with a choice of white or Brown?
Beef in pack of fillets, minced or diced or slice?

Or Life is only index and figures to show?