The damaged has been done, the Malaysian government made the worst blunders in history by increasing the petrol price by 78sen (40%) in June 2008, the highest hike in Malaysian history. Makes me wonder whether the government had made any studies at all before making such decision. An opinion from well experienced economist should be lauded. It is definitely a disaster if he ask that ambitious fourth floor boy from OxCam.
The impact of such a huge increase in petrol price has given us the highest upsurge in Consumer Price Index (CPI) or inflation rates to 7.7% for June, 8.5% each for July and August 2008 from just 3.8% in May. The major component of CPI are Food and Transport, both combined made up 45% of CPI. It shows the cost of food and transport had bloated so high and had a drastic impact on consumers, meaning we the "rakyat" of Malaysia will have to fork out more for food and other necessities.
Traders immediate reaction was to increase all prices, regardless of its relation with fuel. All prepared food saw a drastic hike and transportation fares increased substantially. And worst of all, these increase are irreversible, it will remain at this level.
Indirectly higher fuel price will impact on manufacturers, constructions, housing developers. And they in turn will pass the burden to the end users, the consumers, house buyers, people like you and me.
The introduction of road tax rebates and cash offers will just increase the cost the government had to borne. That money comes from the "rakyat" also, from taxpayers coffer.
How many times PM reduced the fuel price, or any decision to revert back to the level before June's hike, the damaged had been done; prices of items increased during the period will stay.
The recent reduction was just a sweetener for his waning popularity and timed pre-"Hari Raya" holiday. While the earlier reduction just to garner Permatang Pauh support. But both act failed to please because Malaysians are not stupid except among his a**-licker.
PM is a failure as Finance Minister. His sociology and anthropology background is of no help. He should stick to be a civil servant or join the diplomatic field where he is well fit.
No comments:
Post a Comment