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.