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Cost of Living Pains - Second Incomes

Last activity 10 August 2015 by Gravitas

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cvco

Ive posted plenty about cost of living in Malaysia and introduced the topic of increasing income to counter devalued money.

Today in the Malaysian Insider there is a article on the general topic and to quote:
"They drive for Uber, deliver groceries for Instacart, run errands for TaskRabbit, and rent spare rooms on Airbnb."

Right. So this thread is for expats wondering how to increase income in the face of inflation and lack of salary increment. Its not a get rich or business thread but to discuss the problems and how to solve them.

Many expats have solid employment, high income and dont need to worry. But others work for lower fixed salaries or are even on MM2H programs and will not be able to make ends meet later.

I know at least one person who happened to own one of the cars Uber requires and will drive at night after work for his second income. Others are renting out rooms, renting out tools, use of their washing machine, use of their car or motorbike.

Other expats are becoming in jams and have no clue at all what to do. So this thread will hopefully spawn ideas and solutions so that those wishing to stay here will be able to do so. Old thinking doesnt work anymore. Flexibility and adaptability does.

What do you want to do?
Doing anything now?
Any success or failure?
Need helpers or advice?
Know something to advise others?
Have specific goals you are trying to meet?

Gravitas

The main issue is immigration.  When a foreigner is in Malaysia, income earnings is governed by the professional pass that is held or the social visit pass if on MM2H.  The professional pass is assigned to a specific employer. The MM2H strictly states that no employment can be undertaken. Employment equates to earning money and declaring it for tax purposes.

So foreigners don't really have many options to legally earn extra cash. The article you refer to is for Malaysian citizens who can earn and report earnings in numerous ways. Not the case for foreigners as stated above.

Even sub-letting rooms on a daily basis, such as Airbnb  is contrary to the Strata Management rules.

The moral of the story is to negotiate a proper package before arriving in Malaysia, if you are working. The MM2H process will determine whether you have sufficient offshore income to be deemed able to afford to live in Malaysia.

The sudden sense of everything getting radically more expensive was due to the introduction of Goods and Services Tax. So going forward it should be a flatter path.

Foreigners should not assume that Malaysia owes them a living or anything else. It is voluntary to arrive or work here and like everywhere else in the world, you "cut your coat according to your cloth". If its too expensive, look for the latest discounted country and join everyone who flocks there.

cvco

I think most people are aware of workpass rules but thats not going to stop them, and certainly wouldnt stop them from sharing a house which isnt employment. Everyone will find ways to survive and they will have to.

Strictly speaking, one pass/one job/one income source and so there will be at least two types of people, those who follow and those who dont. There are filipino maids right now advertising for second/third/fourth incomes and while they cant legally, they do and they are hired too and life goes on.

I never mentioned GST in any post because GST only sparked price hikes at the time. Prices have marched steadily upward all these years and I will bet they continue, particularly at times of increments. If there is any flattening here, how would you explain, just for example, that government worker increments over the years immediately translated to general price hikes? No GST at any of those times. How would prices become flat? In 1990 a pack of smokes was RM1.80. Now they are RM12-13-14. Sorry, show me where the flat part is? It looked like a steady rise to me.

Anyway its off topic. The thread is about increasing income and stability in the future, not whether or not anyone should or shouldnt try or even whats within government rules or even debating future inflation rates. Some people will have to create companies and, as directors, hire others to do their work while they keep their first jobs under their workpasses. Others are going to moonlight.  Many ways.

The article, i hope many read it because with polled figures that say 80% of companies expect to have so-called flexible workforces in the future, people are more likely than ever to have multi-incomes as a normal way of life. So the thread is timely, Malaysians or Non-Malaysians.

Gravitas

The main question is whether foreigners should be inciting other foreigners to break the rules.  Answer: Not at very good idea and not consistent with responsibilities when living in a foreign country. But then you are the eternal anarchist ;)

"Flatter path" was the term used. i.e. the price hike was exceptional this year. Of course inflation will always occur - except there is now major talk about a world economy on the horizon characterised by deflation, i.e. salaries have not kept up so prices have to be lowered to maintain some sense of acceptable parity. Bear in mind that now GST has been started, its feasible to lower prices by lowering the GST rate. So good timing for Malaysia.

fun_1234

Hi Everyone,
Can a expat do personal tutoring in Malaysia apart from his routine job, is this legal.

Thanks

Gravitas

If you are a teacher ask the school you work at for guidance.

fun_1234

No,
I will be working in a company & apart from that personal tutoring if any candidate is wiling to accept my tutions, is it possible.

Thanks

Gravitas

Not on a freelance basis - but you may be able to get a contract with an university who will register your employment and make it official.

fun_1234

Thanks,
But is it possible that an expat can have two employment offers. I mean, two types of jobs are not possible in India.
That's why I asked.

Gravitas

Only in the field of education there is some flexibility if the skills you have are in short supply. Advisory roles can be arranged in certain circumstances. Its a test it and see approach and cannot be answered hypothetically.

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