Food inflation in Malaysia and Singapore.

We are always saying how things are cheaper across the Causeway and I do it too. 

I have said it often enough to get rebuked by some of my Malaysian friends.

"You Singaporeans only find it cheap because of the strong S$. 

"Life is actually very difficult for common Malaysians, you know.

"And you people come here and drive prices up.

"You think the people in Johor like higher prices?"





I grew up loving McDonald's fast food.

It was always a treat.

These days, I still go to McDonald's and I like ordering the S$2.50 Fillet o fish. 

Since they dropped the price to S$2.00 before increasing it to S$2.50 for the burger alone, I have not had the meals.

The meal comes with fries and a drink but costs S$5.00.

It is just paying more for extra (and empty) calories which I don't need.





In JB, I remember it cost me about RM9.00 for a Fillet o fish meal.

That is less than S$3.00!

It is like paying 50c for fries and a drink!

It is a no brainer for me.

Of course, I would take the meal! 

Yes, I know.

Suddenly, I am OK with with the extra (and empty) calories.

Bad AK! Bad AK!





For the Malaysians, however, paying for a Fillet o fish meal in Malaysia is like Singaporeans paying for a Fillet o fish meal in Singapore.

It is not more affordable for them.

Actually, it is the opposite.

I found out that an optometrist makes about RM4,000 in Malaysia but an optometrist makes about S$4,000 in Singapore.

The former pays RM9.00 (0.225% of his salary) while the latter pays S$5.00 (0.125% of his salary) for the same meal.

Although inflation is affecting food prices everywhere, it is worse in Malaysia than in Singapore.

Malaysia Food Inflation  Forecast 2016-2020

Food Inflation in Malaysia is expected to be 4.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Food Inflation in Malaysia to stand at 4.70 in 12 months time. Source: HERE.

Singapore Food Inflation  Forecast 2016-2020

Food Inflation in Singapore is expected to be 2.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Food Inflation in Singapore to stand at 2.90 in 12 months time. Source: HERE.

I have made a mental note to be more sensitive when I talk about the cost of living when I am with my Malaysian friends.

Malaysia cuts food subsidies.




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Malaysia and India pay higher interests in similar pension schemes but our Singapore dollar is rated AAA and has appreciated against the currencies of many other countries.

OUE Limited is offering me money for IHC.

Mr Riady explains how he built up his business empire.

International Healthway Corporation Limited (IHC) was spun off from Healthway Medical Corporation (HMC) in 2013. Back then, its IPO price was 48c a share. 

Being a HMC shareholder, I was given free shares of IHC which I have mostly forgotten about until the recent saga in which the entire board of IHC was given the boot. 

Of course, it was revealed then that OUE Limited became a substantial shareholder of IHC.

Today, I received an offer from OUE to buy my shares. Offer price is 10.6c a share.

Two days ago, I blogged about receiving an offer from OUE for my shares in HMC. It seems that OUE sees potential in IHC too. Both IHC and HMC are probably undervalued in their eyes.

I don't have the business savvy, connections nor the foresight of the Riady family. What I do know is that they won't buy heavily into an investment unless they are able to benefit from it.

Both IHC and HMC suffered from having mediocre management which were too adventurous for their own good. 

With my small stakes in both entities, I got tickets to go for the ride with the Riady family. Yes, I won't be accepting this offer either.

Now, from an email I received regarding my blog on HMC recently, I must emphasize that I am rather cavalier about the offers because my stakes are not only small, they are also free of cost. What I am happy doing, of course, might not sit well with others.

I apologise if my blog post on HMC offended some readers and, now, my blog post on IHC too.

If you should feel upset with what you hear, eavesdropping on AK, tell yourself that he is just a mental blogger. Ignore him.

Anger is bad for health. Way too bad.

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HMC and free money from Lippo.