Annual forecast state: -
“…Foremost, wealth that the year brought to the country is an unfavorable as the Yi wood is weak. There is a potential that the country will be seen to increase expenditures due to the increase in global prices for crude oil, building materials and visionary developments. All these would be executed in unpopular manner meanings that the consumer price index will raise and expenditure per capita will increase…
…Internally as seen, such expenditures are favorable or meant to stimulate the economy and maintaining the status quo. Possible of a subsidy cut to be invested into development project, but too many will disturb the equilibrium. Inevitably, water remains the sole arbitrating element to the entire spectrum of things as said. A slash back of these magnitudes may pose many challenges to the various sectors and if the mechanism is not in placed to soften the blow, all will be affected liken to the effect of an avalanche…”
The media reported: -
“…Since the Government announced the new price last week, fuel prices have gone up to US$139 per barrel and is still hovering at US$130.
“In fact, the price of oil is expected to remain at high levels in the months to come. The high price of oil means that the market price of petrol at the pumps have now reached RM3.45 per litre,” he said, pointing out that the price should be reviewed to RM3.15 per litre (with a discount of 30 sen) instead of RM2.70 beginning next month.
“However, the Government realised that the rakyat is still trying to adapt to the higher petrol prices. The Cabinet has thus decided there will be no more increase this year,” he told reporters at his office yesterday.”
What other says: -
“…It will be 78 sens; 40% increase in the price of petrol and RM1.00 increase for the price of diesel which will now cost RM2.58.
Any way, we Malaysians have a consolation; Prime Minister Abdullah says we are still the cheapest in Asia.
I met Mrs. Ah Soh just now and she told me the price of rice which costs her RM22.50 per 5kg will now cost RM45.00 per 5kg which is a 100% increase.
It is observed that essential food will/have increase 100%.
I asked Ah Beng, the supervisor of a massage parlour, how about the business cost and pricing for a massage and he told me that he expected the price to increase by about 30-40% in tandem with the rise of fuel cost. "But, massage don't use petrol or diesel," I quipped. Ah Beng: "You also stupid! The massager comes to work by car or taxi and their cost to work has increase and soon they will be asking for a pay rise or else they will mogok." I see!
Another consolation is that my Ah Loong friend just told me that he is going to reduce the borrowing rates from 10% to 8% as a social responsibility to assist the people and bumis will get extra 1% discount. What will be the repercussions? Transportation cost & school buses - what will be the increase? What about the chain effect on all other businesses and what is the total impact on the people? Will this be a trigger of calamities? I darn dare to think about it…”
Ar. David Yek Tak Wai
