Economic Stimulus during Turmoil

I would like very much to suggest a basic economic stimulus to the Government.

I believe most will agree with me that petrol price is one of the most basic elements. A downward adjustment, of course an obvious one, will bring about:

Lower business operating cost;

Sustainable transportation costs to business community and the public;

Competitiveness in term of cost control for domestic industries;

Higher disposable income to all citizens for spending in other activities to further boost up/ sustain economy.

Theoretically, the Government should not have collected "taxes" at this stage as such "taxes" channelled to economic stimulus package cannot benefit all citizens with direct positive impact while a downward adjustment in petrol pump price can achieve that.

Minimum pump price, set at RM1.80 per liter, is too high and will shrink the competitiveness of domestic industries in facing global challenges. Chain effect-wise, when domestic industries are losing their competitive edge against the overseas, then the Government will face difficulty in collecting taxes, to fund development projects.

Please think it over carefully. And, my urge is that DO NOT adjust downward by a little extent as it is impactless economically.

 

 

Yours faithfully,

Singaram

Lawyer cum Economist