by Dr. Chen Man Hin
AS AN OIL PRODUCER, MALAYSIA MUST USE ITS OIL INCOME TO BOOST THE ECONOMY AND RELIEVE THE SUFFERING OF THE PEOPLE. THE CABINET MUST BRING DOWN PUMP PRICES IMMEDIATELY.
The cabinet should not dither any more on the critical issue of bringing down pump prices. It must NOW act to bring down the price of pump oil immediately.
The economy has slowed down considerably since the price of pump oil was increased by 42% from RM 1.98 to RM2.70 per litre. All sectors of the economy have been affected, The manufacturing industries, transportation, tourism, hotels, restaurants, shops and even markets have been affected bady because of the high increase of oil by government.
The construction industry is badly hit because of the rapid and huge price increases for steel, concrete and other building materials. Many contractors have surrended back their contracts to govenment and developers.
Housing developers report a drop in sales of 30% to 50%. House buyers are worried that developers may not be able to complete their houses.
Consumers are also suffering because prices of food have gone up.
The general population is being hit by a double whammy of high prices and reduced income, arising from the sudden hike of oil prices. Inflation has shot up to 8%, and this has reduced the purchasing power of a family’s income
The cabinet cannot delay any longer. The price of fuel and pump oil must come down to the former levels, immediately.
If the economy continue to slow with inflation of 8%, serious damage to the economy will occur and there will be a negative effect on the 9th Malaysia Plan with disastrous long term implications.
The country can afford to reduce pump prices. Malaysia is a net exporter of oil. the income from Petronas should be used to boost the economy and make life easier for the people.
Further more, international oil pundits say that present oil prices are ‘abnormal’ and are anticipating oil price to drop to US$78 per barrel.
The cabinet must act now and act fast. It has already made a serious mistake by raising pump price by 42% causing severe problems of inflation, slower economy and untold misery for the people. ACT NOW.
#1 by pjboy on Saturday, 2 August 2008 - 11:44 pm
It’s easy to say when the crude oil price is dropping “gov will not increase price until end 2008″. Whatever the case, the entire system seems to be wrong. Eg. It is probable that fishermen are more than happier to sell the subsidised diesel than to catch fish. Sometimes, the amount of diesel used is more than the value of the day’s catch.
The gov just helped them to make a bigger profit with the 63% increase at the pumps (RM 2.58) & industrial diesel at RM 3.40-3.80 should they find a way to abused the subsidy given to them. The potential is there. Fishermen subsidised diesel at RM 1.40 if not wrong. So, who is pocketing it?
All the price of fuel is issue is now trying to be buried by gov with the so-do-mee case. Let’s also not forget the indelible ink issue. The people responsible for the cheating the people’s right should not be ignored.
#2 by umtanhh on Sunday, 3 August 2008 - 2:11 am
What we should say is that after so many years of harvesting petroleum, and Palm oil, rice, sugar cane, vegetables, fruits, rubber, fish and etc., we are still in bad shape, WHY?
Where is all the money goes? With rich resources, our personal income still below par, education system is lousy although we have so many Universities, the welfare is bad, no health coverage even though you pay your taxes, most of doctors and nurses in Government hospital are bad in attitude.
If most of us, Malaysian earning more or our purchasing power is strong, means that our currency exchange rate is the same as Singapore, I think there will be not so much of a problem. But when our neighbors’ country are getting stronger especially Chine and India, they will create two giant black hole and start to suck all the raw materials like steel, cement; and food like fish, meat and vegetables.
SO now when this kind of things happen, like materials, crude oil increased in price, people can feel it immediately because our money is small, but if we increase our exchange rate, foreign company will feel that our country is not competitive anymore, they will start moving out, then disaster will come.
SO if you r the government, what should you choose?
#3 by i_love_malaysia on Monday, 4 August 2008 - 11:57 am
It is not up to us to increase the exchange rate though the exchange rate could be manipulated by our govt or speculators for a short time, but it all depend on supply and demand for the currency. If there’s no support for our currency exchange rate through actual productivity, efficiency gain etc. in Malaysia, our exchange rate will never be going up or on par with Singapore in the long run!!! Instead, it will be coming down!!! This happened even to US Dollars!!!
#4 by MPSPK on Tuesday, 5 August 2008 - 5:52 pm
VOTE FOR ANWAR!!!! Badawi tried to fool us with the new oil price on September…. why now???? why just after Wan Azizah vacant her seat?????
Bodohwi, please dont insult our intelligence… we r not as stupid as u r….
#5 by nafasbaru on Wednesday, 6 August 2008 - 1:16 am
concerned_citizen Says:
“Now when Anwar wants to contest and gain entry into Parlimen, he proposed that oil price will be cut soon. What the heck??”
it is unethical to use national resources for political advantage.
imagine! lowering the price of oil as a political tool, and NOT with the intention of reducing the rakyat’s burden.