Tuesday, February 28, 2006

domino effect...

Tomorrow, fuel price in Malaysia will be increase by 30 sen. Quite a dramatic move by the government though. Unleaded petrol will be RM1.92 per litre whereas leaded petrol will be RM1.88 per litre.

It couldn't be helped since the entire world is also facing the same price hike. An attack on the world largest oil plant processing few days ago just worsen the scenario.

If this trend continues, the life of all Malaysians, sadly to say, will be burdened with high rate of inflation. Many citizens of KL, Shah Alam and the surrounding areas might one day face the fact that they could not longer able to sustain their life in the cities. High price of petrol added with countless toll booth around those one can live in those kind of environment? Not to forget, once the fuel price increases, the price of everything will be increase too. Even the villagers will be experiencing the effect of fuel hike. Domino effect is taking place here.

Such kind of life will only lead to high inflation rate. High inflation rate for long period of time is not desirable for a developing country such as Malaysia. Vision 2020 that has long been heralded as the ultimate aim for all Malaysians might not be possible to achieve completely.

A strategic and sound economic strategy need to be applied by the government to reduce this domino effect. Not being that knowledgable in the field of economy myself, I just hope there is something that government could do.

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