This what we got from Rosmah's husband after unveiling the second stage of New Economic Model (NEM) module. He did indicate several major announcements would be made involving new projects and policy initiatives to make Malaysia more attractive to the global market.
I sincerely hope that drinks and foods prices in KT city would not increase. With prices being quoted higher than averages from what we found in some towns in West Coast, and low than average of food quality and service.
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Saturday December 4, 2010
New subsidy cuts to save RM1.2bil
By IZATUN SHARI
PUTRAJAYA: The prices of Ron95 and diesel have increased by 5sen per litre while liquefied petroleum gas (LPG) and sugar will go up by 5 sen per kg and 20sen per kg respectively.
Minister in the Prime Minister’s Department Datuk Seri Idris Jala said that the price hikes, effective midnight yesterday, were expected to result in a total savings of RM1.18bil.
He said the savings would be channelled towards the Government Transformation Programme including improving the urban transportation network, rural basic infrastructure and roads, education and efforts to combat crime.
Idris described the increase as very minimal and said it should not hurt the people.
“I think it is fair to the rakyat. I believe people will be able to accept it,” he told a media briefing on the second wave of subsidy rationalisation here yesterday.
He said the price of Ron95, which would be raised to RM1.90 per litre from the current price of RM1.85, would still be lower compared to its retail price in Indonesia (RM2.46), Singapore (RM4.63) and Thailand (RM4.25).
Idris said the price of diesel would retail at RM1.80 per litre compared to RM2.50 in Indonesia, RM3.18 in Singapore and RM2.96 in Thailand.
LPG will retail at RM1.90 as opposed to RM2 in Indonesia, RM6.42 in Singapore and RM1.93 in Thailand.
The new price of sugar at RM2.10 compares favourably to its cost in Indonesia (RM3.50), Singapore (RM3.80) and Thailand (RM2.80).
In the first subsidy rationalisation programme on July 16, the price of Ron95 and diesel went up by 5sen per litre while sugar and LPG were raised by 25sen and 10sen respectively, resulting in total savings of RM779mil.
The Government’s decision to increase the price of fuel (petrol, diesel and LPG) and sugar is in line with its long term strategy to gradually rationalise subsidies and manage its fiscal position by enhancing revenue and at the same time reducing expenditure.
