YOUR ADS HERE (BLOG)
390W X 140H (px)

Why RM10 Feels Useless Now — Even If Prices Haven’t Skyrocketed

Jomanda Heng
Jul 3
4 min read

Updated: Jul 6

Shrinkflation, tipflation, and the quiet war on your wallet

Have you walked out of a convenience store lately feeling like you paid more but bought less? You're not alone — and no, it's not just in your head. While official inflation rates may not seem catastrophic, the real-world impact on Malaysian consumers is far more insidious.

It’s called shrinkflation and tipflation — two growing trends that are silently eroding the value of your money and warping how we experience spending.

Understanding what’s really happening is more than just a budgeting trick — it’s a consumer survival skill in today’s economy. SHRINKFLATION: Your Ringgit, Shrunk in Secret

Shrinkflation is the stealthy practice of reducing a product’s size or quantity while keeping the price the same — or even slightly increasing it.

That 1-litre box of juice? Now 900ml. Your favourite cereal? Less in the box, but the packaging is just as big. You may not notice the change at first, but over time, your shopping cart contains fewer items while your bill stays the same.

Why is this happening?Manufacturers are dealing with rising costs — raw materials, shipping, labour — and instead of hiking up prices directly (which might scare customers away), they quietly reduce what you get.

“It’s a form of hidden inflation,” says Dr. Norliah Samsudin, an economist at UKM. “Companies protect their margins without triggering sticker shock.”

This isn’t just about snacks and drinks. Detergents, cosmetics, even health supplements are part of the trend. In many cases, the consumer ends up spending more over time just to maintain the same usage.

TIPFLATION: The Psychology of Guilt-Tipping

Meanwhile, tipflation is another creeping phenomenon — one that plays on your emotions more than your logic.

You're in a café, ordering a RM17 iced latte. You tap your card, and the cashier turns the screen toward you. It asks:“Add a tip? 10% • 15% • 20%”

You hesitate. You’re not sure if you’re supposed to. The barista didn’t even bring the drink to your table. But you don’t want to seem stingy. So you add RM2.50 — not realizing you’ve just increased your bill by nearly 15%.

Why is this happening?In the post-pandemic era, many businesses are trying to avoid raising base wages. Instead, they push customers to shoulder the cost — using digital prompts that make tipping feel expected.

“Tipping used to be a reward,” says Hafiz Rahman, a financial educator. “Now it’s a social pressure.”

And the places asking for tips? It’s no longer just restaurants. Think:

Bubble tea kiosks
Food trucks
Self-service stalls
Beauty parlours
Delivery apps

In some countries, tipping culture is long-established. But in Malaysia, the sudden ubiquity — without transparency or regulation — is confusing and often exploitative.

Why Consumers Need to Be More Aware

These practices aren’t illegal. But they are manipulative — and most consumers aren’t even aware they’re happening.

Here’s what’s really at stake:

Eroded trust: When brands shrink products without notice, or guilt you into tipping, they’re exploiting your habits — and weakening customer loyalty in the long run.
Budget mismanagement: You think you’re spending the same — but your monthly grocery bill has ballooned. Not because you bought more, but because you’re getting less.
Unfair cost shifting: When companies offload rising costs onto customers in ways that aren’t transparent, it unfairly targets everyday consumers instead of holding corporations accountable.
Lifestyle inflation: You’re not buying fancier things, but you feel poorer. That’s psychological — and dangerous for long-term financial health.

The Bigger Picture: What This Signals About the Economy

The rise of shrinkflation and tipflation signals something deeper: companies are struggling, and consumers are absorbing the shock.

In Malaysia, the cost of doing business has increased due to:

Weakened ringgit
Higher import prices
Labour shortages
Fuel and transport hikes

Instead of open conversations about price increases or wage adjustments, brands are turning to quiet tactics that disguise the pain — while consumers pay the price, literally.

While you can’t stop global economic shifts, you can take back control of your spending:

✅ Read the fine print – Compare price per gram/ml, not just the sticker price

✅ Call it out – Ask businesses about portion sizes or why they’ve removed items

✅ Set tipping boundaries – Tip for great service, not for every tap-and-go

✅ Speak with your wallet – Support brands that are honest and transparent

“Consumer awareness is the first line of defence,” says Dr. Norliah. “Once you recognise the patterns, you’re less likely to be manipulated by them.”

Final Thoughts: Why It Feels Worse Than It Is

So no, not everything is outrageously expensive. But when your portion shrinks, your tip grows, and your money stretches less — the effect is real. It’s not always about what you pay. It’s about how much you get back.

And right now, the answer is: less than ever.

References