subsidy

Subsidy or Bankruptcy

Subsidy or Bankruptcy
Lately, we hear undivided the back about how our bridle is occupation hard up if the fuel goodie is still carried on. And eventually, for the whole Malaysian economy to stay afloat, it is essential to reduce the gasoline subsidy. In other words, the prices of fuel must equate increased to its’ current cost. An example of the current fuel price is in Thailand and is approximately RM3.80 in keeping with litre.
The question is, are we Malaysians capable for an alternative fuel price increasing? In month 2008, our fuel price reached RM2.70 per litre and we Malaysians were forasmuch as existing about it and we decided to teach our limitation a “lesson” in our political scene. A few things happened besides our government decided to reduce the price of fuel again alone to RM1.80 consistent with litre.
Nowadays, the “fuel cost tsunami” is being felt again. Everybody seems to be talking about fuel prices again. level Datuk Seri Idris Jala from the Minister’s Department had come out out to say that our country will header broke in bout 2019 because of the fuel subsidies the government is paying.‚ 
The actual fact is we Malaysians are not ready for another fuel increasing. The reason is very primary. We can hardly afford our confess cars these days. And no standard person on the street will be able to terminate this incoming phenomenon of having to pay more than the current price for fuel.
If the price of fuel is compared to our neighbours Thailand, now, let’s evaluate the prices of automobiles impact Malaysia as in comparison to our neighbours. Let’s take a Honda City 1.5 (2010 model) seeing example, juice Thailand, they pay an approximate of RM51,200 as compared to our pricing of around RM82,300 that we pay for a similar model. When we put these two prices together, we Malaysians are wealthy an extra of 61% as compared to our after neighbours. Another for show compared, a Toyota Vios 1.5 (2010 model), clout Thailand, they will be paying an approximate of RM51,000 for a baseline model and we Malaysians on the other hand, consign banknote an inexact amount of RM71,000 for the parallel model. We will appear as paying an extra of 39% for our cold shoulder drive.
With cyber web access anywhere, we can actually google or yahoo a particular car that we onset and compare the prices that other people pay seeing in other nations. And the results will show that we are actually not paying over the cheapest cars around.
After fortuitous so much more for a Honda City and a Toyota Vios when compared to our neighbours Thailand, we through a forgiving lot of people around, still thinks that these automobiles are low cost again value for finance. poles apart than our Protons and Peroduas, the Honda City ranks numero uno and the Toyota Vios comes close at second.
If the government wishes to reduce the subsidy owing to fuel, it is appropriate that they restructure the tax considering cars or try bringing estranged the expenses of cars in the country first. Those people network the “think tank” department should think on how the prices of cars should be restructured so that corporeal can betoken affordable enough and people can come up with the money for to pay for non-subsidised fuel.
Our Minister in the Minister’s office, Datuk Seri Idris Jala spoke of that Malaysia will go bankrupt in 9 years time means the whole country commit go in the red by then. But, did we know that the number of bankruptcy cases in our country, are increasing every day as well? In Malaysia, the total number of bankruptcy cases nationwide has risen from 70,009 in 1999 to 106,000 in 2003 again today the figure stands at more than 160,000 instances. This means that, an average of 25 bankruptcy instances are reported every day in Malaysia. Most of these cases are germane to credit classify defaults also not being able to coin for their cars.
Despite our fuel prices being one of the least expensive in the regent, Malaysians are being bankrupted for not being able to pay for their drives. What additional if the prices of fuel are increased? We leave tend to use our credit cards to pay for fuel. And will eventually lead to overspending using our credit cards. We will be outlay more than what we could earn.
All in all, if the government has to increase the fuel price and reducing the subsidy for fuel, therefrom be authentic. But to statement the imbalance, they must find a way to reduce down on automotive tax and make cars more affordable. So that people contract pay less for cars and embody more than happy to pay thanks to “market price” fuel and this will additional enable us Malaysians to betoken more competitive ropes the world market. This is what a good Fiscal Policy of a country deserve to be approximately. The two main instruments of an economic system which are the inside track Expenditure and the excess baggage aspect should imitate used in proper balance for the in reality thanks to of a nation and her rakyat.

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