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One Malaysia
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Discussion Starter · #1 ·
jom bincang sini.

Fuel price hike:
Subsidy still in force

By : Deborah Loh

PUTRAJAYA: The pump price for petrol is now RM2.70 per litre and diesel RM2.58 a litre following a cut in the fuel subsidy.

The increase of 78 sen per litre for petrol and RM1 a litre for diesel still leaves their prices 30 sen below the market rate.

Announcing the hike, Prime Minister Datuk Seri Abdullah Ahmad Badawi said a 30-sen subsidy per litre will prevail on pump prices, and will be used as an “automatic adjuster” in tandem with fluctuations in the world oil price.

The government will make the adjustments monthly.

To cushion the price increase, cash rebates will be given to owners of cars and motorcycles, based on engine capacity, through post offices from July 1.

These rebates will be given to owners of vehicles with road tax renewed between April 1 this year and March 31 next year.

Those who have already paid their road tax should produce their vehicle registration details at a post office and Pos Malaysia will issue them a money order.

Vehicles with large engine capacities will be levied a lower road tax from June 1.

The rebates will cost the government about RM5 million this year.

From today, the price of subsidised diesel will be standardised at RM1.43 per litre for fishermen, boat owners and transport operators.

Previously, subsidised diesel was priced at RM1 per litre for fishermen, RM1.20 for boat owners and RM1.43 for transport operators.

Prices for cooking gas (liquefied petroleum gas or LPG) and natural gas for vehicles (NGV) remain unchanged at RM1.75 for every kg of LPG and 63.5 sen for every litre of NGV.

This involves Petronas restructuring its gas subsidy from July 1 for the peninsula whereby it will raise gas prices for energy producers and industrial users.

The government will save RM13.7 billion from the restructured package.

Out of this amount, RM7.5 billion will go towards subsidising prices of petrol, diesel and gas.

The rest will be spent on food security (RM4 billion), cooking oil subsidies (RM1.5 billion), standardising the price of rice in Sabah and Sarawak (RM0.4 billion), flour subsidies (RM0.2 billion) and bread subsidies (RM0.1 billion).

Abdullah said even after the fuel price increase and restructuring, the government would still have to spend about RM18 billion to pay for the difference between the pump prices and the world price.

Reiterating his call for Malaysians to change their lifestyle and be more prudent, Abdullah said they should try to spend less in all areas.

“This is something that is happening all over the world. We are not lifting the subsidies totally as we are still subsidising petrol and other items like cooking oil.”

He said efforts were being made to improve the public transport system.

Acknowledging that the fuel price increase would not go down well with the public, Abdullah said the government could no longer sustain the rising price of oil.

“I am not out to be popular. We try our best, and this is something we are very serious about, but naturally people will not be happy.”

Fuel subsidy scheme

- 30 sen subsidy for petrol and diesel

- Automatic monthly adjustment in petrol and diesel prices, in line with global prices

- Annual cash rebate of RM625 for owners of private vehicles with an engine capacity of up to 2,000cc, and pick-up trucks and jeeps up to 2,500cc

- Annual cash rebate of RM150 for owners of motorcycles with a 250cc engine or less

- Road tax discount of RM200 for owners of private vehicles with engine capacities above 2,000cc

- RM50 road tax discount for motorcycles with engines above 250cc

- Fishermen, boat owners and transport operators will get diesel at RM1.43 per litre

- Each Malaysian fishing vessel owner will receive RM200 monthly

- Fishing vessel owners will get incentive of 10 sen for every kilogramme of catch landed

Where the RM13.7b savings will go

- RM7.5 billion goes back as subsidies for petrol, diesel and gas

- RM4 billion for food security

- RM1.5 billion for cooking oil subsidies

- RM400 million for standardising price of rice in Sabah and Sarawak

- RM200 million for flour subsidy

- RM100 million for bread subsidy
 

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^^

I don't see the word "public transport" or mass jatropha plantation....

With the price increase, i would like to see improvements on our fuel quality, our diesel ranked 78th in the world, if we can improve this, then we can manufacturers bring modern diesels to our market, and our government should ask car manufacturer to have some sort of "eco-car" and possibly, changing road tax not just based on engine capacity, but based on emission and fuel consumption, it is also good if the government can try to provide incentives (maybe reduction on import/excise duties) on imported hybrid vehicles so that more manufacturers enticed to bring in hybrid vehicles for sale here.....the only such vehicle on sale in Malaysia is Honda Civic Hybrid....
 

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^^

I don't see the word "public transport" or mass jatropha plantation....
yes, there is:

He said efforts were being made to improve the public transport system.
but not mentioned under the RM13.7 billion... interesting...

and what did they promise the last time the price was increased??? public transport?? ha ha...:bash:
 

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^^ I actually support the price hike but the government should improve on the public transportation.......if they managed to do this then we should be able to see a cleaner environment in a long term planning......as we know most of these green house gases came from vehicles.....
 

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Discussion Starter · #5 ·
Suspend oil futures to curb soaring inflation
by Kevin Tan
Email us your feedback at [email protected]


KUALA LUMPUR: Prime Minister Datuk Seri Abdullah Ahmad Badawi has suggested that oil futures trading be suspended in order to curb its inflationary effect on other commodity prices.

Drawing attention to Japan’s example in suspending its rice futures market to slow increases in the price of the staple, Abdullah called for similar bold measures to manage the steep rise in food, oil and commodity prices.

“To prevent speculative bidding, Japan has suspended trading of rice in the futures market. It has also offered to sell rice from its stockpile at reduced prices.

“We should examine such steps for possible application to the oil market, itself an important contributor to the soaring prices of other commodities. All such measures would, of course, require negotiation and agreement at the international level,” he said in a keynote address at the 22nd Asia Pacific Roundtable here yesterday.

Abdullah said a global response was needed to manage burgeoning food, oil and commodity prices as national and regional efforts are “naturally limited”.

“The international community must be prepared to consider bold and unprecedented measures. The burden which is now borne largely by the developing countries and the poor can easily spill over into the developed societies,” he said.

Protests, demonstrations and food riots had already broken out in several countries, including those in the region, Abdullah noted. Fishermen had blocked ports in Spain and France and truck drivers in Britain had parked their vehicles in convoys along its roads.

Abdullah said the Asean Plus Three process could also do its part by building up the Asean Food Security Reserves so that the buffer mechanism could function effectively. This was envisaged in its 1979 agreement, he pointed out.

Currently, the reserve did not have adequate stocks to effectively stabilise the price and supply of rice among the group’s members, he said.

“Steps also need to be taken to move the East Asia Emergency Rice Reserve beyond the pilot project stage. It must become a viable rice reserve scheme that has the full commitment of all participating countries,” Abdullah said.

Emphasising the enormous burdens of rising prices, especially on the poor, he said: “Inflation rates are among the highest in many countries. Real incomes are falling. The middle class has joined the ranks of those complaining.”

Abdullah said prices of rice, which is the staple food for Asians, rose 76% from last December to April this year.

Overall, food prices rose 83% in the last three years while oil prices increased by 40% in the first five months and quadrupled during the last six years, he added.

“National budgets are straining under the weight of the mounting cost of subsidies,” Abdullah said. “The analysts say prices have probably peaked. At some point they no doubt must. But in the meantime they remain very high.”

He said although the problem was largely externally induced and often beyond the control of individual countries, the situation was fuelling dissatisfaction against governments everywhere.

“It breeds discontent on other issues,” he added. However, the same degree of concern did not seem to exist in the developed world except for the rising fuel prices.
 

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^^

I don't see the word "public transport" or mass jatropha plantation....

With the price increase, i would like to see improvements on our fuel quality, our diesel ranked 78th in the world, if we can improve this, then we can manufacturers bring modern diesels to our market, and our government should ask car manufacturer to have some sort of "eco-car" and possibly, changing road tax not just based on engine capacity, but based on emission and fuel consumption, it is also good if the government can try to provide incentives (maybe reduction on import/excise duties) on imported hybrid vehicles so that more manufacturers enticed to bring in hybrid vehicles for sale here.....the only such vehicle on sale in Malaysia is Honda Civic Hybrid....
yeah..where's the RM10 billion from the price hike for public transportatioN!!!
 

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Thursday June 5, 2008 MYT 9:50:49 AM
Trading of Tenaga shares suspended

KUALA LUMPUR: Trading in the shares of Tenaga Nasional Bhd has been suspended from 9am to 5pm Thursday, the company announced to Bursa Malaysia Securities.

Tenaga said it had requested the suspension. The power giant is scheduled to hold a press conference at noon to announce the electricity tariffs revamp.

On Wednesday, the government announced the withdrawal of the bulk of subsidies for oil and diesel while also allowing Tenaga to raise electricity rates.

This would see electricity rates for residential homes in peninsular going up by 18% while businesses would have to pay 26% more.
 

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One Malaysia
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Discussion Starter · #8 ·
Tarif baru elektrik 1 Julai

PUTRAJAYA 4 Jun - Kerajaan hari ini mengumumkan struktur tarif baru elektrik yang menyaksikan pengguna domestik masih layak menikmati kadar tarif sedia ada sekiranya penggunaan bulanan mereka berada di bawah 200 kilowatt jam (kWj).

Perdana Menteri, Datuk Seri Abdullah Ahmad Badawi berkata, menerusi tarif yang berkuat kuasa mulai 1 Julai ini, sebanyak 59 peratus isi rumah di Semenanjung akan membayar kadar yang sama iaitu dengan anggaran bil elektrik kurang daripada RM43.60 sebulan.

Menurutnya, pengguna komersial dan industri pula mengalami peningkatan sebanyak 26 peratus manakala peruncit, pekedai dan pengusaha restoran kecil serta perusahaan kampung yang jumlah penggunaan elektrik bulanannya di bawah 200 kWj hanya mengalami kenaikan 18 peratus.

Bagaimanapun Abdullah yang juga Menteri Kewangan berkata, struktur tarif baru elektrik bagi Sabah dan Sarawak akan diumumkan tidak lama lagi.

''Selaras dengan hasrat kerajaan untuk melindungi sebaik mungkin kebajikan golongan berpendapatan rendah dan sederhana, struktur tarif elektrik yang baru ini tidak akan menjejaskan pengguna yang menggunakan 200 kWj ke bawah setiap bulan.

''Ini bermakna 59 peratus isi rumah di Semenanjung akan membayar kadar yang sama selagi mengekalkan tahap penggunaan yang sama," katanya

Beliau berkata demikian pada sidang akhbar mengumumkan pakej penstrukturan semula subsidi di sini hari ini.

Di bawah tarif itu, Tenaga Nasional Berhad (TNB) menetapkan tarif bagi kediaman sebanyak 21.8 sen bagi penggunaan 200 kWj pertama sebulan manakala 34.5 sen bagi penggunaan dari 201 kWj sehingga 400 kWj dengan caj minimum bulanan ialah RM3.

Menurut Perdana Menteri, kerajaan meluluskan struktur baru tarif tersebut selaras dengan penstrukturan semula subsidi gas dan kenaikan harga arang batu.

Ini, kata beliau, bagi membolehkan TNB menyerap kos bahan api membabitkan kedua-dua sumber bahan bakar itu.

''Langkah-langkah yang telah disebut adalah selaras dengan keputusan kerajaan menstruktur semula subsidi yang mana usaha ini akan menuju ke arah harga pasaran sebenar, meningkatkan kecekapan pasaran serta menggalakkan rakyat menjimatkan sumber tenaga.

''Sektor komersial dan industri pula akan menjadi lebih bermotivasi untuk melaksanakan langkah-langkah kecekapan dalam operasinya sementara pengguna bagi isi rumah akan mengamalkan penjimatan tenaga serta mengelakkan pembaziran," katanya.
 

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and what did they promise the last time the price was increased??? public transport?? ha ha...:bash:
KTM Komuter frequency has dropped, Rapid KL and Rapid Penang (or all bus service)do not have subsidy, KL-Ipoh rapid intercity service delayed to 2010,etc....
 

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Where the RM13.7b savings will go

- RM7.5 billion goes back as subsidies for petrol, diesel and gas

- RM4 billion for food security

- RM1.5 billion for cooking oil subsidies

- RM400 million for standardising price of rice in Sabah and Sarawak

- RM200 million for flour subsidy

- RM100 million for bread subsidy
subsidy for flour, bread or imported food can be reduced by raising the value of ringgit!!

why bank negara refuse to use such mechanisme? here is what economist says

"However, economists argue that interest rate is a better tool to fight inflation and that letting the ringgit rise could lead to large flows of money speculating on further increases"

the problem is, singapore dollar rose 3.5% while taiwan dollar 6%. but has singapore and taiwan's economy faced any serious thread?

i believe ringgit itself is weak and sucks
 

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Looking from this, lots of works needed to be done on public transport, as proper bus system (with maps etc.) are only available in Klang Valley (Rapid KL) and Penang (Rapid Penang), it is time for that thing to be expaneded to other cities such as JB, KK, Kuching and others...and in future, KTM Komuter service for areas surrounding Penang and JB...

Source : http://www.bernama.com/bernama/v3/news.php?id=337609

June 05, 2008 20:37 PM

High Petrol Price: City Folk Resort To Public Transportation


KUALA LUMPUR, June 5 ( Bernama) -- The announcement by the government on the hike in fuel price Wednesday has prompted more city folk to opt for public transport, like the Light Rail Transit (LRT) service, to travel to their workplace and other destinations here.

Checks by Bernama at several LRT stations in the city Thursday found them more crowded than usual.

A customer service assistant of the PUTRA LRT at KL Sentral, Suzana Abdullah, 36, said there were more people using the PUTRA LRT service Thursday.

"Normally, we see more passengers and packed trains only on weekends, but today, I find there are more people using the train service," she said.

The government's announcement on the restructuring of the petrol, diesel and gas subsidy saw an increase of 78 sen in petrol price to RM2.70 per litre and the price of diesel increased by RM1 to RM2.58 per litre.

A sales assistant at The Mall, Ahmad Qushairi, 20, who was waiting for a train at the Titiwangsa STAR LRT station, said he had decided to use public transport to save cost due to the increase in fuel prices.

"Previously, I drove to work ... I think with the increase in oil price, it is better to take the train. It saves cost and there is also no traffic jams," he said, adding that he hoped that the increase in fuel prices would not lead to increase in prices of goods.

Food stall operator, Mat Tuah Yusuf, 37, who spends almost RM400 a month on fuel for his vehicles, comprising a car, lorry and motorcycle, has also decided to use public transport.

"I can save on fuel and also parking charges," he said when met at the Masjid Jamek STAR station. However, civil servant Alias Khamis, 52, is not perturbed by the increase in fuel price.

He said the increase would not burden the people as they were still able to enjoy lower fuel prices compared with the people in the neighbouring countries, like Singapore.

"The price increase is due to global factors. Although increase in prices of goods is anticipated, it is the responsibility of the government to address the problem," he added.

Alias, who was met at the Masjid Jamek PUTRA LRT station, said he opted to use public transportation because it was cheaper and, in a way, got him to exercise.

-- BERNAMA
 

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subsidy for flour, bread or imported food can be reduced by raising the value of ringgit!!

why bank negara refuse to use such mechanisme? here is what economist says

"However, economists argue that interest rate is a better tool to fight inflation and that letting the ringgit rise could lead to large flows of money speculating on further increases"

the problem is, singapore dollar rose 3.5% while taiwan dollar 6%. but has singapore and taiwan's economy faced any serious thread?

i believe ringgit itself is weak and sucks

That is the Magical Word for us to become developed country and key to reduce inflation. Our purchasing power has not increased over time but reduced year by year.

With this increase of 40% of Petrol, i would said if you take home with
RM2000 last monthm then this month you are actually take home with only
RM1200, although this sound ridiculous, but that is true. Our money become weaker and weaker. :eek:hno:
 

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That is the Magical Word for us to become developed country and key to reduce inflation. Our purchasing power has not increased over time but reduced year by year.

With this increase of 40% of Petrol, i would said if you take home with
RM2000 last monthm then this month you are actually take home with only
RM1200, although this sound ridiculous, but that is true. Our money become weaker and weaker. :eek:hno:
"poor companies are killed by crisis, good companies survives crisis but great companies thrive on crisis" - andy groove.

i hope malaysia(ns) will thrive on this world commodity shortage crisis.
 

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subsidy for flour, bread or imported food can be reduced by raising the value of ringgit!!

why bank negara refuse to use such mechanisme? here is what economist says

"However, economists argue that interest rate is a better tool to fight inflation and that letting the ringgit rise could lead to large flows of money speculating on further increases"

the problem is, singapore dollar rose 3.5% while taiwan dollar 6%. but has singapore and taiwan's economy faced any serious thread?

i believe ringgit itself is weak and sucks
Nope, not necessary. If Malaysia is self-sufficient, then we can consider about interest thingy. Malaysia cannot even produce enough food, such as rice. Different country, different culture, different policy and different solution for currency policy.
 

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Nope, not necessary. If Malaysia is self-sufficient, then we can consider about interest thingy. Malaysia cannot even produce enough food, such as rice. Different country, different culture, different policy and different solution for currency policy.
It looks like our recent food policy is just a "knee-jerk" reaction to global food crisis, our nation has around 70-something percent of rice sufficiency, but bear in mind, there are still a number of unattended rice fields....so instead of just hastily adding new rice planting fields, we should also look into rehabilitating those unattended fields...

The notion of agriculture means backward, is not true, it is a good way to combat rural poverty...
 

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It looks like our recent food policy is just a "knee-jerk" reaction to global food crisis, our nation has around 70-something percent of rice sufficiency, but bear in mind, there are still a number of unattended rice fields....so instead of just hastily adding new rice planting fields, we should also look into rehabilitating those unattended fields...

The notion of agriculture means backward, is not true, it is a good way to combat rural poverty...
Yup. Totally agreed.
 

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June 06, 2008 20:32 PM

Govt To Announce Four Swift Measures To Ease Burden On Consumers

PUTRAJAYA, June 6 (Bernama) -- The government will announce details on four swift measures by early next week aimed at easing the burden on consumers as a result of the recent sharp increase in fuel prices and electricity tariffs, Prime Minister Datuk Seri Abdullah Ahmad Badawi said Friday.

In a meeting with senior editors here, he said the four measures entailed cost-saving measures by government departments and agencies, expanding the social safety net for people in the lower income bracket and under-privileged groups like single mothers and the handicapped, enlarging the list of controlled items to keep costs down, and improving public transport like putting more buses on the roads.

Abdullah said the government was extremely mindful of the burden on the people as a result of the price increases on fuel and electricity tariffs.

He said raising fuel prices and electricity tariffs was not something that the government liked to do but it had to bite the bullet now to prepare for the long-term benefit of the nation and its future generations.

Abdullah said government officials entrusted with working out the details would be working over the weekend so that they could be announced early next week.

Elaborating on the measures, he said the government's cost-cutting measures would include reducing overseas travel and the number of officials involved.

He said the savings derived from the cost-cutting at government departments and agencies would be used in other areas to benefit the people.

As for expanding the social safety net, he said this would mean enlarging the threshold to cover more people who were in the lower income and under-privileged groups.

Citing an example, he said there were already a certain number of schoolchildren getting free school uniforms and meals but the enlargement would meant that more would stand to benefit.

Abdullah said that with the government recognising the likelihood of increased food prices following the increased fuel prices and electricity tariffs, the number of essential items on the price control list would be expanded to keep costs down.

Such a move would ensure that the people would not be heavily burdened by higher food prices, he said.

Abdullah said there were other areas that the government was looking at aimed at reducing the burden on Malaysians affected.

He also announced the establishment of a National Inflation Council comprising members from both the government and private sectors.

It would hold its first meeting on Monday.

Abdullah said the aim of the new measures was to lower the negative impact on the lower income group as the government was always mindful of the people's welfare.

He was confident that the government would be able to help the people tide over this difficult period as it had successfully done so during the recession of the mid-1980s and the financal crisis in 1997.

He said if the government did not reduce the fuel subsidies, it would have meant that it would have to spend about RM28 billion this year.

This was an unwise thing to do if one were to take into account its annual revenue of about RM154 billion, he said.

Abdullah said the government had been successful in bringing its budget deficit to 3.2 per cent from 5.5 per cent in 2000 but if it continued with the fuel subsidies, then its budget deficit could rise to between 6.0 and 10 per cent.

Having such a high budget deficit would have a negative impact on Malaysia's sovereign ratings although the government did not always go to the money market to borrow, he explained.

However, rating downgrades by rating agencies would indirectly impact on the borrowings undertaken by Malaysian companies and this meant that they would have to pay more, he added.

Referring to suggestions by some quarters that the government should use its funds to pump-prime the current economy, Abdullah said it would not be a sensible thing to do so at present.

He said that if there were to be a major global economic crisis or recession and Malaysia had used up a huge chunk of its funds just for fuel subsidies, then it would seem that the country had played its last card.

Abdullah said funds should only be used to pump-priming purposes to jump-start the economy if there were to be a global recession.

He also said that in the past when the government subsidised fuel prices heavily for the people, many people who were not in its target, like foreigners, cheats and smugglers, benefited even more from the fuel subsidy scheme.

-- BERNAMA
 

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Nope, not necessary. If Malaysia is self-sufficient, then we can consider about interest thingy. Malaysia cannot even produce enough food, such as rice. Different country, different culture, different policy and different solution for currency policy.
we all know that we are not self sufficient in producing food. and we depends highly on imported food. even malaysian consume more Thai rice than the Super Tempatan which has less quality than Thai's Beras Wangi.

even if we produce more super tempatan, people who opt for a better Thai Beras Wangi has to pay more due to the value of ringgit. we can't simply 'force' those people to use a lower grade rice. but still we need to ease the burden of these peoples too...
 
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