KOTA KINABALU – It seemed like a great strategy at the time for food stall operators and property and real estate market practitioners in Sabah: cater to the demands of foreign tourists and the rich instead of locals and make more money by charging higher prices.
However, the Covid-19 pandemic may just be serving a severe and ultimately expensive lesson for them, as the drastic drop in socio-economic activity has left many facing almost zero income.
“Overall, the type of development by real estate developers now is not local friendly, but caters more to foreigners, tourists, or the rich,” Samuel Lai, a media officer for a political party, told The Vibes.
He gave the example of a bungalow in Iramanis that his parents had bought in the 1990s.
“Back then, the unit sold for around RM300,000, but now, it has peaked to between RM800,000 and RM900,000.”
Lai claims the higher prices of goods and property have surged to “ridiculous” levels, most probably offset by the state’s reliance on imports.
“These days, even a small studio apartment costs hundreds of thousands of ringgit. Not only can locals not afford that, but the space is not enough to raise a family.”
He also said there has been a stark change in the type of restaurants in the city; traditional kopitiams of before have transformed into high-end cafes serving Western and Chinese dishes.
Rather belatedly, local food operators once fixated on serving tourists more than locals are now realising that it may be a better idea for them to price and style their food according to local demand.
“The pandemic opened their eyes. When the tourism sector flatlined due to Covid-19, they literally had zero customers. But who here can afford their food? The prices cater only to tourists and the rich,” Lai said.
Prices grow, buying power shrinks
With property prices peaking over RM500,000 and food prices inflated by 100%, it is not surprising that Kota Kinabalu has been labelled the third most expensive city in Malaysia, behind Penang and Johor Baru.
City folk lament that, while cost of living continues to spiral, salaries remain low.
“The city has become so expensive and, certainly, not meant for locals,” said account manager Cheryl Thien.
“Even a cup of iced coffee costs RM3 at restaurants.
“The sad thing is that when the price of petrol goes up, food prices also go higher, but when the fuel prices go down, the price of food doesn’t.”
She added that these days, even locals had to pay tourist rates for some homestays.
“We want to enjoy local prices but we all end up paying foreigner price rates, which are higher than what is usually charged to locals.”
Graphic designer Priscilla Anabelle said that while prices for both properties and food are generally higher in town, cheap food can be found.
“It depends on whether we want to look for cheaper food and are willing to go the extra mile to find them.”
She also bemoaned the fact that property prices are not aimed at attracting locals.
“It is definitely targeted towards the rich, expatriates, or tourists. This has caused more locals to look for homes in suburban areas,” Priscilla said, lamenting that many locals are being treated as second-class citizens while those of higher status are able to enjoy all the modern facilities the state has to offer.
Proximity to the city an important factor
Businessman Anthony Wong, 52, said that while the property and food price disparity in Sabah is extremely high, prices reduce the further one travels away from the city.
“I paid RM3 for coffee in Kota Kinabalu. The same cup of coffee in Beaufort, some two hours away from the city, is half the price,” he said, adding that people in suburban areas enjoy cheaper goods too.
Although the income of those in the city may be higher, Wong said that workers living in the city are also generally given the same minimum wage as those in Beaufort, Sandakan, or Tawau.
“The minimum wage for Sabah is RM1,200 a month for a full-time worker,” he said, adding that despite the high cost of living in the city, things are still manageable. – The Vibes, April 15, 2021
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