The 40% Malaysia's fuel price hike is not an political attempt by Malaysian government to be popular. Ironically, the record high global oil prices need to be addressed as it has pushed the cost of subsidy way past the expenditure for development.
The virtual elimination of the subsidies is in line with similar steps taken by other governments reeling from record high global oil prices for the sustainable development for the future.
It may be very traumatic to think about the energy war has started. The lasting economic damage, the unimaginable consequences that would tip Malaysia into a generations-long economic depression and many would lose their jobs as industry implodes become the new priority for Malaysian government to ensure her transparency and accountability.
Malaysians are lucky to be blessed as subsidies have kept the price of fuel in Malaysia — a net exporter of oil — among the lowest in Southeast Asia. But the government can no longer afford to fund the subsidies due to record high global oil prices, which are expected to cost the treasury more than 45 billion ringgit (US$14 billion) this year.
The restructuring of fuel and electricity prices will save the government 13.7 billion ringgit (US$4.41 billion) this year, with the savings to be channeled to increasing food security, including subsidizing imported rice, flour, bread and cooking oil.
We will need all our strength, courage and cooperation to joint the government's efforts to deal with the consequences of what the oil hike and de-industrialization. Knowing the challenges and difficulties are in front of us Malaysian is the first step in choosing for ourselves how we will react.
Generally, consumers are changing their behavior in response to higher prices when the fuel price goes up. It will almost certainly tension but begin to consume less and look for alternatives.
If fuel prices get high, I’ll just drive less. How about you?
The virtual elimination of the subsidies is in line with similar steps taken by other governments reeling from record high global oil prices for the sustainable development for the future.
It may be very traumatic to think about the energy war has started. The lasting economic damage, the unimaginable consequences that would tip Malaysia into a generations-long economic depression and many would lose their jobs as industry implodes become the new priority for Malaysian government to ensure her transparency and accountability.
Malaysians are lucky to be blessed as subsidies have kept the price of fuel in Malaysia — a net exporter of oil — among the lowest in Southeast Asia. But the government can no longer afford to fund the subsidies due to record high global oil prices, which are expected to cost the treasury more than 45 billion ringgit (US$14 billion) this year.
The restructuring of fuel and electricity prices will save the government 13.7 billion ringgit (US$4.41 billion) this year, with the savings to be channeled to increasing food security, including subsidizing imported rice, flour, bread and cooking oil.We will need all our strength, courage and cooperation to joint the government's efforts to deal with the consequences of what the oil hike and de-industrialization. Knowing the challenges and difficulties are in front of us Malaysian is the first step in choosing for ourselves how we will react.
Generally, consumers are changing their behavior in response to higher prices when the fuel price goes up. It will almost certainly tension but begin to consume less and look for alternatives.
If fuel prices get high, I’ll just drive less. How about you?
1 comment:
if oil rise, not only drive less can solve the problems.my money in my pocket will become less but oil company become richer.
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