Yangon struggles under increasing cost of living

At streetside shops, cheap noodles are still there to be found, at Ks 600. Hundreds of metres away, an air-conditioned restaurant which caters for affluent and foreign clients offers a noodle at Ks 2,000 or higher. An influx of foreigners – for leisure or business – has led to the development of higher-quality products and services, while the earning of majority dwellers in the city is not adjusted accordingly.

Many wage earners, especially company and government employees, have found it difficult to keep up with the increasing cost of living, reflecting mainly through rents. 

“Last year, when we rented our apartment, we paid Ks 90,000 (US$ 90) per month. But starting from this year, the owner already increased the rents to Ks 120,000 per month. But my salary is still the same as  last year. So it is really hard for me to meet my expenses,” said Ei Myat, who works for KBZ Bank.

Whatever the price, she had to accept it. The six-month renewable contract was signed recently, costing her a total of Ks 600,000. It was because it is really hard to find another apartment near her office.

“My salary is less than Ks 200,000 (US$ 200) but I usually earn more than Ks 220,000 a month including the allowances,” said a senior official at the Ministry of National Planning and Economic Development, requesting anonymity.

 “Although I am single, I find it really hard to make ends meet,” he continued, adding that despite a salary increase for civil servants he still struggles to meet the increasing cost of living.

In the past year, Myanmar’s inflation has been rising by 6 per cent, mostly due to the kyat depreciation against the US dollar. From nearly Ks 900 per dollar, the currency last year nearly hit Ks 1,000 and this was translated into the costs of products and services. From April 1, these people also have to shoulder the higher electricity fees. 

Yangon has experienced a sharp economic growth since the country reopened its doors in 2011. The country’s gross domestic product expanded by 7.5 per cent in 2013 from 7.3 per cent in 2012, thanks to new investment by local and foreign investors and tourism spending. 

While quality workers find better-paid jobs, the majority is living with barely-the-same salary. The government recently agreed to raise civil servant salary. 

 “To be honest, the life of a civil servant is very miserable. I earn just over Ks 100,000 at the moment. Thanks to the salary increase, I will get more than Ks 120,000, starting this month. I wish I had my own apartment,” said Kyaw Zaw, a junior assistant teacher.

He has been working under the Ministry of Education for more than 30 years since he was 21 years old.

Others as well as rural people seeking jobs in the city have to endure the higher cost of living. 

Win Tin, who has earned a living being a taxi driver, admitted that life in Yangon was really hard for low-income families.

“We have to pay the owner Ks 15,000 a day to hire the car from 6am to 6pm. So I have to earn more than 25,000 a day to meet my family needs. Sometimes, it is impossible. Last month, there were many days when I could hardly earn the owner’s fees because of many drivers in Yangon, following the lifting of the car import ban,” said Win Tin.

Many small businesses are in a similar boat. Hla Hla has been running a video CD rental in Sanchaung Township since 2003. She rarely uses a taxi when going out because she earns only Ks 100,000 a month. Her family, with an 8-year-old child, has to rely on her husband’s salary. 

Troubles seem bigger for pensioners.

Retired teacher Myint Myint said that most pensioners cannot live with what they earn and have to depend on their children’s support.

“I get about Ks 30,000 a month or Ks 1,000 a day. How can we survive with such little money?” she asked.

The outlook is bleak. The International Monetary Fund is convinced that inflation this year would remain at 6 per cent.