How did the government arrive at the RM625 yearly rebate for owners of private vehicles? This is for engine capacity up to 2000cc to offset the drastic price hike in petrol beginning today. That amounts to only RM52.08 per month which is grossly insufficient to cover the additional cost on fuel for people who depend on their cars to move around. The public transportation in the Klang Valley and elsewhere in the country is just too hopelessly inefficient to be reliable.
It will be interesting to see what factors were considered. It will be even more interesting to see how businesses are going to cope with the added cost since commercial vehicles are excluded from getting any fuel rebate. Are we going to see another round of price increase in essential goods such as foodstuff? These are uncertain and painful times but one sure thing is that punters will be hedging their bets on 625 come Saturday and Sunday.
Its going to be another round robin increase in prices for everything from the food we eat to the toilet paper we use to wipe our behinds I reckon.Everything that needs to be transported or needs electricity to manufacture will increase in price.
People will demand higher salaries and this will lead to another round of rises as the cost of labour goes up.
If productivity remains the same, the country becomes uncompetitive, jobs could be lost and another vicious cycle begins.
The government is in a difficult position.It needs to pump prime the economy by injecting money into the system to keep it running – by giving the citizens money to spend ($625) and investing in mega projects (Iskandar).Because once the people stop spending, the economy falters.