What Rosmah's alleged RM1.6 billion luxury spending can bring to ordinary Malaysians

• According to estimates from the Department of Statistics Malaysia for 2020, there are approximately 29.8 million Malaysian citizens and 8.2 million households in the country.

• In a recent court case, Datin Seri Rosmah Mansor is accused of spending US$346 million (about RM1.6 billion) of 1MDB funds on luxury goods between 2010 and 2014.

• This sum could have provided 38,095 needy families in Penang with a low-cost apartment worth RM42,000 for life.

GEORGE TOWN, June 14 — 1Malaysia Development Bhd (1MDB) and its subsidiaries, including SRC International Sdn Bhd, are suing Datin Seri Rosmah Mansor for the US$346 million (about RM1.6 billion) of their funds it allegedly spent on jewelry, handbags, watches and more.

The scale of the numbers involved in the global 1MDB corruption scandal is such that it can be difficult to imagine.

For example, the situation is different when we realize that it would take a Malaysian earning the median salary of RM6,590 in 2023 over 20,000 years to amass this amount. While the average Malaysian today lives 76 years, it would take more than 260 lifetimes to earn the amount Rosmah would have used to buy luxury goods.

To further illustrate the extent of the alleged excess involved, Malaysian mail has interpreted the sum that 1MDB and others are demanding from Rosmah in terms more accessible to ordinary Malaysians.

Here is a list of what RM1.6 billion could have bought, based on Department of Statistics Malaysia estimates for 2020, which is 29.8 million Malaysian citizens and 8.2 million households.

Food

1. Rice

Based on an estimate of RM2.60/kg for local white rice, RM1.6 billion can purchase 123 million 5kg bags. This equates to 15 bags per household, which, based on an average rice consumption of 80 kg per year, would be enough to feed the entire country for three months.

2. Poultry

Using the standard processed chicken price of RM9.40 per kg with an average size of 2kg per bird, RM1.6 billion would buy over 85 million whole chickens, enough to give each family 10 birds each .

3. Maggi Instant Noodles

The average price of a pack of five Maggi instant noodles is RM4. RM1.6 billion would mean 400 million packets, enough for each Malaysian to get 13. Assuming they ate one packet every day, that would be enough to feed the entire country with one Maggi meal a day for more of a month.

4. Roti canai and teh tarik

Assuming an average price of RM5 for the iconic Malaysian breakfast combination of two roti canai and a cup of tarik, RM1.6 billion would buy each Malaysian almost 11 days of this breakfast.

5. Nasi lemak

RM1.6 billion would purchase nearly 1.1 billion packets of nasi lemak based on an average price of RM1.50 each. This equates to approximately 36 packets of nasi lemak per Malaysian.

6. KFC

If you opt for fried chicken, KFC's two-piece chicken meal at RM16.99 would mean 94 million plates for RM1.6 billion, enough for every Malaysian to get three.

Child care

1. Daycare

For those who have children, childcare costs are an unavoidable monthly expense. Using an estimate of RM1,000 per month, the amount Rosmah would have spent on luxury items would be enough to pay for an entire month's care for 1.6 million children.

2. Infant formula

Assuming parents spend RM120 on two cans of formula for each infant, RM1.6 billion would feed more than 13 million babies for an entire month.

3. Layers

Another expense that new parents would be painfully familiar with is disposable diapers. At an estimate of RM35 per pack of diapers, RM1.6 billion would buy 45 million packs of diapers, enough for about a month's supply of three packs each for more than 15 million babies.

Smartphones and Internet access

1. Internet

The average postpaid mobile data plan is now around RM30 per month. So, RM1.6 billion will enable each Malaysian to provide almost two months of free data or free internet access for four million Malaysians for a year.

2. Smartphones

The price of Samsung's latest smartphone model, the Galaxy S24, is RM4,599, so RM1.6 billion will buy 347,901 units. As for its competitor Apple, this amount allows the purchase of 363,719 units of its latest model, the iPhone 15.

Cars

Using the base retail price of RM34,800 for the Proton Saga as an indicator, RM1.6 billion would be enough to purchase 45,977 units of the model. Alternatively, the same amount could also purchase 41,450 units of the Perodua Axia 1.LG priced at RM38,600.

If we were to take the much-hyped Tesla into consideration, on the other hand, the Model 3 is priced at around RM181,000, so RM1.6 billion will buy 8,839 units.

Accommodation

In Penang, where a low-cost apartment costs RM42,000, RM1.6 billion would be enough to provide 38,095 families with free housing for the rest of their lives. Even for Residensi Madani houses priced at RM200,000 each, RM1.6 billion would be enough for 8,000 units.

Species

If the entire sum were to simply be paid to each Malaysian citizen, this would translate to RM53.69 per person or RM195.12 per household.

• Rosmah was accused of purchasing jewelry, handbags and other luxury items with funds from 1MDB and SRC International in 14 countries between 2010 and 2014.

• 1MDB and SRC International have since filed an injunction to prevent Rosmah from withdrawing or disposing of its assets

For more on this developing story, read Malaysian mailIssue Summary: Everything you need to know about: 1MDB sues Rosmah over alleged RM1.6 billion luxury shopping spree