Fight inflation with white elephant
Jan 25th, 2008 by Tian
Najib said the Government will keep the inflation rate as low as 2.4%, anyone believe him?
Deputy Prime Minister Najib Tun Razak announced a three-pronged strategy aimed at softening the impact of inflation:
1. a national food stockpile;
2. a National Price Council; and
3. a National Call Centre with a 24-hour hotline.
Is Malaysia facing an emergency? I guess Najib has just appointed himself the chief commander to combat inflation.
The measure is nonetheless an indication that the government has admitted to the seriousness of the crisis. Najib’s announcement seems to confirmed that we are now in a state of emergence.
Food stockpiling is a stupid idea. First of all, there is really no shortage of food items (rice, flour, beans, maize, sugar, cooking oil, or durian) in this country. Even if we have insufficient domestic supply from time to time, we can readily import food from neighbouring countries.
Why add extra storage cost on the controlled item? This will become another form of wasteful ’subsidy’.
The government seems to have adopted a policy that makes no economic sense.
Not only the concept of food stockpile solves no problem, the establishment of a National Price Council and a National Call Centre is another redherring.
What is the function of National Price Council? The council will include all the government agencies as well as non-governmental representatives from FOMCA, MTUC, Cuepacs, FMM (Federation of Malaysian Manufacturers), etc.
It is reported that the council “would also review and evaluate the price control regime to ensure fair prices, depending on domestic and global market and conditions of supply and demand. It would also monitor, review and recommend measures to rationalise government subsidies and price support activities covering the production and supply, including imports, of all price-controlled items.” (The Star, 24 Jan)
This is a longterm measure for facilitating better communication between different sectors. It has no direct impact on pricing mechanism.
Then how would the 24-hour National Call Centre help?
Najib said unemployed graduates would also be hired to man the hotline. People can call in to complain on high prices and shortage of goods in the country, and the information will then be reported to the council.
Can you see a white elephant coming?
well- white elephant or not- i think this is never the first time it has ever happen before !… so i am not at all surprise- at times i wonder with malaysia having so many ‘white-elephants’ i think the Thai King is envious as he doesn’t hv that many compared to us ! … (that’s a big laugh) …
hope that … Keadilan/DAP and the other opposition party will really sit down and make sure a proper arrangement is made between all the parties concern this coming election so that the chances of gaining more seats is there and we give the BN a good ‘fight’…
Well, well, we all know that intelligence is never a strong point or characteristics of Najib Razak. This philanderer is more suited to tending the cow paddock than trying to pose as an economist. My heart goes out to the people of Malaysia for having been lumbered with this “d—head” as your DPM. Maybe if you manage to successful ly gain true democracy, this character should be sent out to tend the goat herds. That I would love to see instead of the preposterous humbug of trying to control inflation. Why doesn’t he pass an Act to freeze the prices of goods as after all they have managed to specifically passed a legislation to extend the Electoral Commissioner’s tenure? What a joke of a country.
There is NO SHORTAGE of food and fuel. As I write today the govt has already shocked the country with fuel price hike. An employee of Shell confirmed there is NO SHORTAGE of fuel.
REVISE PERSONAL INCOME TAX
Anyway since the fuel subsidies are dropped, and the costs of living will balloon, I suggest the govt revise our personal income tax rates. No PI tax for those earning below RM500k pa. Tax applies for those earning above RM500k and corporations. That way let the IRB go after the Ali Babas, the Vincent Tans, and those who cook their books, IRB gotta start doing some REAL work eventually, why not start now?
REMOVE ALL TAXES ON CARS AND ACCESSORIES
Remove all import taxes on cars, make cars as cheap as in Thailand (since BN loves to compare with oth neighbouring countries).
REMOVE ALL TAXES ON READING MATERIALS
This would ease the burden for students and parents who has to support school-going kids.
At least with these “savings” the low-middle class can still survive. Otherwise with the high cost of living, people may be forced to sell their houses and other properties, and we may also see a “subprime mortgage situation” in Malaysia.
Worse, stagnation (inflation and stagnant economy)