Archive for August 15th, 2008

Oil policy – change it to encourage economic growth

by Dr. Chen Man Hin

The present oil policy to set gasoline and diesel prices at international market prices has caused a sharp decline of the economy causing hardships to the people.

This is the current policy adopted in developed economies which do not advocate subsidised oil for the people. Their experts contend that subsidised oil would distort the market, and people would not be encouraged to conserve the use of oil. In the end there would be a disastrous impact on the economy and on the environment.

The Prime Minister, Datuk Seri Abdullah Ahmad Badawi, who is also Minister of Finance slavishly followed the concept practised in developed countries. It has proved to be disastrous for Malaysia.

Because of the high pump prices of gasoline and diesel, the economy has slowed down considerably. The wheels of industry are not humming, and more people are laid off. Read the rest of this entry »