My Say

The price of petrol has been increased by RM0.30 due to government’s reduction of fuel subsidy. Various reasons have been given for this. The prime minister (”PM”) says that this is for development. As heavy user of petrol, (and therefore severely affected ), I would not mind if the reduction in subsidy is used for the stated purpose. The problem is that, as with most things in this country, there is no transparency at all. Now, who is going to verify that this money will actually be used “for development”? It is more likely that a big chunk of this “savings” will end up in the pocket of some well-connected politicians and their family members.

The reason given by the PM is also quite laughable. Of course, the filthy rich who own many big cars probably enjoyed a disproportionate share of the fuel subsidy, but they can easily afford the hike in fuel price. It’s the poor people, who are just getting by, who will feel the pinch.

To top it all off, read what the economists have to say about this here. So the inflation has increased (due to a governmental decision) and the interest rates have to be increased to contain this. What a load of (pardon my language) crock! It’s like causing wars to sell more weapons…

that “a slight increase or reduction in interest rates does not make a big difference in the economy”. When he made this statement, he obviously didn’t have in mind the average Malaysian household, who are struggling to make ends meet. The increase in interest rates in the last few months has meant a 5% increase in the monthly housing loan repayment. On its own, this may not seem large, but bear in mind that prices of petrol has increased by over 20% in the last year, with more increases to come. Prices of electricty and water are also expected to increase, which will result in an increase in prices of all goods across the board. He’s obviously living in his own world that is cushioned by luxuries and shielded from all these.

And who are the main beneficiaries of these increases in interest rates? The local lending institutions and commercial banks. They have enjoyed unheard of net margins of more than 3% for the last few years, due mainly to excess liquidity or funds in the system. Fixed deposits rates have been fixed at 3% while base lending rate (BLR) was 6%. Savings accounts bear almost no interest rates. With the increase in the Overnight Policy Rate by the Central Bank, most banks have increased the BLR to 6.5% while deposit rates have only increased marginally, if at all.

If I were you, I would buy bank stocks. That is the only way to offset the negative impact of the increased interest rates on the net disposable income of the average Malaysian household.

Senator Tan Sri Nor Mohamed Bin Yakcop. The second finance minister. A powerful man, in charge of the Malaysian Ministry of Finance. He made this statement on 18 Feb. And on 22 Feb, the Central Bank made this statement. What was he trying to do? Mislead the markets? He should take a page from Greenspan and make statements that have been carefully thought out (and vetted by someone who knows something)!

Please refer to this link. Hopefully you will find this useful.

And for those who are not using Mozilla Firefox as your browser, I strongly recommend it. You can download it at here.

…and it’s not the official opposition who’s providing it. It’s Tun who’s the de facto big brother, with regular comments like these. All the better, I say. Come to think of it, I would really miss his wit and sarcasm when he’s gone. Well, let’s enjoy it while it lasts!

On a separate note, I wonder how Pak Lah is taking all these. Can imagine him wincing everytime he reads the papers!

I’m not sure what you make of this claim, but I can’t wait for the public revelation of what must be the discovery of the century. If true, of course. Even though I’m very sceptical, I would wait to see what ‘evidence’ they’ll produce.

Rafidah thinks that she’s in charge of the approved permits (AP) for importing cars into the country. See here. But the PM has now put her in her place by saying this. Has the PM made a mistake by not removing her in the cabinet reschuffle . She is reminding him that she will continue to be a pain in his side.

It seems the bad review of Proton Savvy was not an isolated event. It’s almost unanimous: Proton Savvy is not a good buy. This review could be the final nail in the coffin.

BBC reported this as one of their headlines yesterday. Apparently there was quite a massive demonstration yesterday in KL over the cartoon row. See photos here. However, there was not a word on this reported in the local newspapers. Was there an order from someone not to report? Or are they scared now, after what happened to Sarawak Tribune? Do we now have to read foreign papers to find out what’s happening in this country?

It’s a pity. The car that was to revive the fortunes of Proton has been dealt a severe blow by this review . Every single review and complain about Proton cars has been the worry about their quality and “cheap” material used for the interior. Why has Proton done nothing about this? If only they improve the quality, I believe their fortune would turn around overnight. I sigh everytime I think of the missed opportunities and ‘what ifs’ …