Malaysia:Typical graduate annual salary – RM28,800
Brand new Honda Civic 1.8VTEC – RM118,300
1 litre RON97 petrol – RM1.80
UK:
Median starting salary (2007) – GBP23,500 per annum
Brand new Honda Civic 1.8ES VTEC – GBP15,835
1 litre RON97 petrol – 85p
The cost of a Honda Civic 1.8 in KL is 411% of a fresh graduate’s annual starting pay, whereas in the UK it is only 67% of a freash graduate’s annual starting pay.
At 9.3 litres per 100km, it’ll cost a Malaysian motorist RM16.74 to travel 100km, whereas in the UK it will only cost GBP7.91
Many will include the exchange rate (RM5.1 to the pound at 2/1/09) in arguments like this and argue that if multiplied by the exchange rate, a litre of petrol in the UK would cost RM4.30. But that’s not the case, the currency is not the issue; the percentage of the nominal amount spent over income should be the measure of the cost of living.
In other words, a guy in the UK earning 2,000 units of currency per month pays .85 units for a litre of petrol and a guy earning 2,000 units per month in KL pays 1.80 units for a litre of petrol. Does this mean the cost of living in the UK is lower?
Some other comparisons:
Loaf of bread
UK - 0.72 (Sainsbury)
Malaysia – 2.10 (Gardenia)
Colgate toothpaste
UK – 1.29
Malaysia – 3.90
3 bedroom apartment in West Ealing – GBP1,450 per month
3 bedroom apartment in Kelana Jaya – RM1,100 per month
Monthly TFL travelcard (zones 1-4) – GBP 141.40
Monthly RapidKL travelcard – RM135
Brand new Honda Civic 1.8VTEC – RM118,300
1 litre RON97 petrol – RM1.80
UK:
Median starting salary (2007) – GBP23,500 per annum
Brand new Honda Civic 1.8ES VTEC – GBP15,835
1 litre RON97 petrol – 85p
The cost of a Honda Civic 1.8 in KL is 411% of a fresh graduate’s annual starting pay, whereas in the UK it is only 67% of a freash graduate’s annual starting pay.
At 9.3 litres per 100km, it’ll cost a Malaysian motorist RM16.74 to travel 100km, whereas in the UK it will only cost GBP7.91
Many will include the exchange rate (RM5.1 to the pound at 2/1/09) in arguments like this and argue that if multiplied by the exchange rate, a litre of petrol in the UK would cost RM4.30. But that’s not the case, the currency is not the issue; the percentage of the nominal amount spent over income should be the measure of the cost of living.
In other words, a guy in the UK earning 2,000 units of currency per month pays .85 units for a litre of petrol and a guy earning 2,000 units per month in KL pays 1.80 units for a litre of petrol. Does this mean the cost of living in the UK is lower?
Some other comparisons:
Loaf of bread
UK - 0.72 (Sainsbury)
Malaysia – 2.10 (Gardenia)
Colgate toothpaste
UK – 1.29
Malaysia – 3.90
3 bedroom apartment in West Ealing – GBP1,450 per month
3 bedroom apartment in Kelana Jaya – RM1,100 per month
Monthly TFL travelcard (zones 1-4) – GBP 141.40
Monthly RapidKL travelcard – RM135
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