Pray For MH370

Pray For MH370

INFLATIONARY SPIRAL CALMED BY ELECTION TSUNAMI

Package to keep inflation in check
By : Jennifer Gomez


KUALA LUMPUR: The government is working on a complete package to curb inflation, including putting more money into consumers' pockets and spreading the benefits of economic development to a wider pool of people.

International Trade and Industry Minister Tan Sri Muhyiddin Yassin said the Finance Ministry was studying how best to put the package together.

"(Second Finance Minister) Tan Sri Nor Mohamed Yakcop will come up with a full report on the new initiatives (to curb inflation)," he said after his visit to Malaysian Industrial Development Finance Berhad yesterday.

On Tuesday, Prime Minister Datuk Seri Abdullah Ahmad Badawi chaired a meeting on inflation. Besides Muhyiddin and Nor Mohamed, the meeting was also attended by Deputy Prime Minister Datuk Seri Najib Razak, Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad, Minister in the Prime Minister's Department Datuk Amirsham A. Aziz, Economic Planning Unit director-general Datuk Seri Dr Sulaiman Mahbob and Treasury secretary-general Datuk Seri Dr Wan Abdul Aziz Wan Abdullah.

Muhyiddin said Abdullah wanted the package ready as soon as possible. "What can be done sooner will be of benefit to the people."
Inflation in February accelerated 2.7 per cent year-on-year, the fastest pace in 12 months, led by increases in food prices.

Meanwhile, an analyst with Kenanga Investment Bank said the most obvious way to curb inflation for the time being was not to cut subsidies as they kept prices stable in the interim period.

However, she concurred with the World Bank statement that subsidies should be "temporary and targeted to ensure they do not place an onerous burden on government and divert resources from essential sectors".

She warned that Malaysians would eventually have to face the consequences of subsidy cuts.

"The whole scenario has changed since the elections. If before, we were bracing for a cut in subsidies this year, now given the impact of the election results, the government has to postpone plans for any cut this year."

She expected a subsidy cut next year at the earliest.

CIMB Investment Bank chief economist Lee Heng Guie felt that the government should review the effectiveness of price controls to determine whether they had outlived their purpose.

"The objective of price controls is to ensure that prices of essential items remained stable. But the government should also look at allowing market forces to determine pricing. For instance, by giving more licences to manufacturers, it would lead to better competition and prices would be competitive as well."

Lee said policymakers needed to look and analyse the source of the inflation to determine the causes of rising prices in the last few months in order to come up with the right strategies going forward.

"If you look around, the increase in the cost of raw materials largely contributed to the increase in the price of goods. It's more cost-driven inflation rather than demand-pull".

Comments :

1
Unknown said...
on 

SALAM SEJAHTERA. MOHON MAAF KERANA MELETAKKAN SEKALI LAGI TAJUK INI KERANA KITA PERLU MAKLUMAT YANG BERSEPADU DAN LENGKAP UNTUK MEMBUAT PENILAIAN DAN KEPUTUSAN.PERNAH DI POST PADA AWAL APRIL DAN HARGA BARANG MAKANAN UTAMA KIAN MENINGKAT. KITA KENA CEPAT BERTINDAK.

 

x

Photobucket

e


Popular Posts

Followers


View My Stats

pautan lain

  • - Mesyuarat Agung Khas AMALNITA perihatin Pelancaran Tabung PDS AMALNITA dan anda
    6 years ago
  • "Paciaru" atau breakfast. - Yb Meru bersama Mr.Maniam turun padang memantau jalan2 berlubang di susur keluar highway Setia Alam ke Jln Meru dan Jln Korporat Kawasan Meru ...
    7 years ago

Ab

zwani.com myspace graphic comments

x

Photobucket









Recent Comment

ISLAMICITY

SEARCH THE TRUTH

Search in the Quran
Search:
Download | Free Code
www.SearchTruth.com