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Despite the surveys, Bangkok is cheaper



The University of Thai Chamber of Commerce's consumer confidence survey has shed some light on what consumers are feeling as a result of the economic and political uncertainties. In May, the index was the lowest in 90 months, and the surveyor attributed that to a gloomy atmosphere amid rising joblessness and higher cost of living.

It is true that with the same amount of money, we can buy fewer things, though inflation so far this year has been negative. But as you are complaining about this, let's consider the living costs of people elsewhere.

I was shocked with the taxi fare in Kuala Lumpur. The Airport Taxi charged 92.50 ringgit for a trip to a hotel near the Twin Towers, which was about 60 km away from Kuala Lumpur International Airport. Taxis in town also declined to turn on the meter and charged a lump sum of 90 ringgit inclusive of expressway tolls.

At the exchange rate of one ringgit per Bt10.5, the fares were nearly Bt1,000. That was nearly double the fare of those whose houses are on the Thon Buri side, who ride a cab to Suvarnabhumi Airport on the east.

At the shopping mall Suria KLCC, a dish at the food court is also 5-9 ringgit, which is higher than Bt40-Bt50 at the food courts in Thai malls. A caesar salad at Traders Hotel Kuala Lumpur also costs 25 ringgit, compared to less than Bt200 at Bangkok hotels.

It is thus surprising to know that according to a survey, Bangkok is a more pricey destination for foreign workers than Kuala Lumpur.

The Cost of Living Survey by ECA International, the world's leading knowledge and solutions provider for international human resources professionals, showed that KL is ranked the 38th among Asian cities while Bangkok's ranking is the 28th in Asia and 174th in the world from 370 locations worldwide.

The surveyor pointed that the depreciation of the ringgit has made the cost of living cheaper for assignees heading to Malaysia. It is apparent that though the Thai baht has depreciated against the US dollar in recent months, given Thailand's higher ranking, the depreciation was not as much as that of the ringgit.

ECA carries out a Cost of Living Survey twice a year comparing a basket of commonly purchased consumer goods and services in over 370 locations worldwide. The results are mainly to help multinational companies calculate assignment salaries. Hopefully, tourists do not apply this information when they are making a decision where to visit, either KL or Bangkok.

Trust me, while the locals are grumbling over the higher cost of living, tourists would feel less painful about this if they came to Thailand.



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