Posts Tagged ‘Economy’

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Should EVERYONE change their lifestyle to reduce fuel price impact?

June 11th, 2008
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I first heard the suggestion about reducing salary of ministers via an email sent to TV3, last week. And voila, the PM announces a 10% reduction in entertainment allowance for cabinet ministers plus limitation in vacation destination. This is being followed by other states such as Pahang, Terengganu, Malacca, and Sarawak. Sarawak even plans to reduce salary of its ministers, BN assemblymen, state speaker etc. by 10%, while Pahang MB hinted at 30% reduction of entertainment allowance.

Lim Kit Siang was talking about reducing more“why stop at just 10%” and asked to cut allowance by half, so I wonder what the Pakatan states will do. Follow suit or do something else? How will the opposition MPs show their support? Will they sacrifice more or will they just sit back and blame the government for the situation?

UMNO Youth  member suggests cutting 10% of salaries of all ministers, deputies an civil servants. Hmm, then how many civil servants will  be under poverty line again?

Looking at the responses on TV, print and online media (even Kalabakan MP Ghapur Salleh Kinabatangan MP Bung Mohktar acknowledged), the rakyat themselves are not fooled by this superficial reductions. They would feel that leaders should “leader by example” and not do damage limitation exercise by announcing such matters after people are angry over price hike.

I personally think that all ministers and MPs should be forced to use public transport. Let them ride in RapidKL or Metrobus, along our Indonesia and Bangladeshi workers, students, wage earners, and pensioners. Let the ministers take Star LRT or Komuter, and get “close” to the rakyat. Komuter carries 90,000 people daily, LRT and Star 300,000 people, and RapidKL about 400,000 people according to this report. Imagine the amount of PR the ministers and MPs can generate.

Ask them to return the government cars and just make monthly claims for transportation costs. Oh, worried about crime and time being wasted? Well, welcome to the real world! If ministers in other countries can take public transport, I don’t see any valid reason why ours can’t do so. We are not a war-torn or under-developed country. Our police have high success rates. Our citizens are polite and helpful people. We have first class facilities. So, why not? » Read more: Should EVERYONE change their lifestyle to reduce fuel price impact?

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only 5 percent SME loans approved

June 5th, 2008
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Wow! if RM479.2 million is just 5%, then the total loan approved is about RM9.584 billion! Perhaps the parties concerned should provide more statistics such as number of applicants, total value of application, reasons for rejection etc. To say that just 5% approved is very bad. Does it mean lack of applications from the normal Malaysian SME businesses?

RM479.2 million/217 = average RM2.2 million per enterprise

 

THE SME Bank has approved loans, totalling RM479.2 milion, to 217 non-Bumiputera small- and medium-sized enterprises up to April. Deputy Entrepreneurial Development and Cooperative Minister Datuk Saifuddin Abdullah said the amount, however, accounted for only five per cent of the bank’s total loans to SMEs.

Saifuddin, in his reply to Senator Datuk Wong Siong Hwee, said SME Bank had been a pioneer in providing financial assistance to small and medium businesses since October 2005. He said his ministry was also helping the bank to iron out several issues which were causing delays in approving loans. » Read more: only 5 percent SME loans approved

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Inflation to be 6 percent

June 5th, 2008
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I remember writing about the lowest inflation rate in the region, which many of us suspect to be incorrect. Was the inflation really 2.8%? With the price hike, it is expected that inflation will double to 6%. I think economists at Citibank also predict the same as the guys below:

KUALA LUMPUR: Economists said inflation could double to six per cent this year after the government decided to increase fuel prices and allow electricity tariff to rise. They also think that economic growth could fall below the government’s official target of between five per cent and six per cent.
Bank Islam Malaysia senior economist Azrul Azwar Ahmad Tajudin said consumer spending would be hit, resulting in a cutback on non-essentials. “People will not be spending on designer labels and expensive restaurants or will think twice about buying new cars and properties,” he said.

Thus, businesses that depend on consumer spending such as retail, tourism, travel and automotive are likely to be badly affected.
“Not only are there threats of lower revenue for businesses that are directly affected, the risk of slower economic growth could pull the overall (stock) market down,” said Azr ul.

CIMB Investment Bank chief economist Lee Heng Guie expects the impact to be felt in the second half of the year. “The economy will go through a phase of adjustment,” he said. » Read more: Inflation to be 6 percent

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Fuel increase and its impact

June 4th, 2008
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Today at 5pm, the Prime Minister made statements (read it at PMO’s website together with the distribution of the income) that sent shockwaves throughout the country. Many were expecting increase in oil prices, but not up to 40%. Even Taiwan increased by 16% recently, while Indonesia by 30%. India also increased oil prices today in the capital areas (refer Malaysiakini). I can accept an increase of 78 sen which is very very steep, but it could have been done gradually step-wise in 3 months instead of in one single sweep.

Diesel saw an increase of RM1 (63%) to RM2.58. But it does not affect the public transportation services.

The PM also announced new tariff for TNB which takes effect from 1st July. This means those who spend less than RM43.60 (200 kW) currently would not be affected. Those who spend more than that amount will see an increase of 18%. The new tariff is as follows:

1-200 kW = RM21.80

201-400 = Rm34.50 (increase of 19.4% from RM28.90)

for first 500 units above 400 kw is 30 sen/unit. Anything above 900 units is 46 sen per unit. Complete table is here.

He acknowledges that this is not a popular decision, but a necessary one.

“We try our best. This isn’t an attempt to be popular. (But) we have to think in the best interest of the people,” he told reporters during a 50-minute press conference held at his office in Putrajaya this afternoon.

“We can’t satisfy everyone. Anything that involves people paying more, naturally they are going to be unhappy. (I hope) they will understand the circumstances we are working under,” he added.

source
Let’s look at the benefits (for general public) being offered:

1. Those with car having 2000cc (and bikes below 250cc) and below will get RM625 (Rm150 for bikes) annual rebate when they renew road tax beginning 1st July. Those qualified are road tax from 1st April 2008. However, it is clear that the rebate will not even cover half a year’s increase in petrol price. Money will be given in form of Postal Order when road tax is renewed, so make sure your addresses are updated at JPJ.

2. For those with bigger capacity cars, they will “enjoy” RM200 reduction in road tax. Similar for bikes with more than 250cc.

3. Cooking oil prices remain.

4. Service tax criteria for restaurants increased from RM500,000 to RM3 million. Thus many restaurants are expected NOT to charge service tax. Please check before you pay.

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malaysian traumatised with double price attack

June 4th, 2008
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Of all the days, yesterday we decided to go to Sunway Pyramid. We braved the heavy downpour and reached Sunway around 5.50pm. While ordering dinner, received the first bad news from neighbour – petrol increased to Rm2.70. Immediately lost my appetite. Felt guilty spending so much on dinner!

Original plan was to get spectacles, so we went around few shops. At about 8pm, announcement was made over the PA that traffic jam was quite bad around Sunway and LDP area. While at a spectacle shop, received second bad news – my soon-to-be renovation contractor called and told that cement bag price increased from RM13 to RM16 with immediate effect. He was worried about losing business and forsee a bleak time ahead. As for me, have to re-evaluate the renovation plan. 🙁

Left Sunway at 9.05pm and got stuck in traffic jam about 500 metres from Sunway LDP toll. Took us 1 hour 45 minutes to cross the toll and reach Binary College. Found the reason for the massive jam – cars lining up at Mobil station next to Binary College!

While in the car, I contacted friends all over the country, and received the same feedback – traffic jams in Damansara, JB, Penang, KL, Ampang, Putrajaya etc. Most were also worried about the impact.

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