Oil Price Economy – Malaysian Tirade?
Citizen Times
Here is Ted Lau’s personal view on Malaysia oil price after the news of RON97 dropping and Indonesia raising their oil price.
First, like many Malaysians, I was ranting regarding the oil price (RON95). But, as I educate myself more on the Malaysia economy, I finally understand on the whole situation. Many would say raising RON95 was a very drastic move by the government in order clear off Malaysia’s debt.
Many pointed fingers that the government is trying to suck every bit and pieces from the rakyat’s pocket. As we know, raising RON95 by a mere RM0.20 might cause havoc in the local market trade and economy. That is the most common thing that most Malaysians know, the ordinary rakyat, and once myself. However, many DO NOT understand the benefit of raising the oil price.
They have no clue on Malaysia economy and they have no clue being the government. That’s the best I would describe. I don’t blame them but it is unfair for the opposition to manipulate on this issue. It is very disappointing that even top guys from the opposition are trying to manipulate this issue to the rakyat. The top guys in the opposition are not stupid, but some are, no doubt, but the top ones if you know who I meant, they are pretty smart people, perhaps, one of the smartest in their generation and I’m sure they know what are the benefits of raising the oil price but they are not revealing it for the sake of their own political gain.
What the government know is that raising the oil price is a step for Malaysia’s transformation to be a better nation. Since oil is the most important commodity among the nation, raising the oil price would definitely raise revenue and income.
First, raising the oil price would definitely be handy in order to reduce the national debt. I can’t stress how important it is to reduce the national debt.
Reducing the national debt is a very positive sign to our GDP, improving the local economy and also to attract investors – perhaps the most important of all.
Let me further elaborate my statement above. Having huge national debt is never a good sign to any nation. It’s a sign that the country is going on the brink to collapse. Fortunately, the government has handled the national debt well although it is still a bit worrying but raising the oil price would definitely contribute a lot on this.
As explained, if a country is on the brink of collapsing, who would want to invest and to venture in Malaysia? Any sane investor would have written off Malaysia as an investment hub. Agree?
If there are no investor and no money flowing into Malaysia, it will be suicide Malaysia. This means that the national GDP would grow at a lower rate or stagnant. But, if there’re a lot of new local and foreign investments , this means more money into Malaysia to be shared among all.
For example, investors set up companies, businesses and factories, what does that mean? It means more job opportunities with better and more competitive salaries which will push up the national GDP. In other words, it will lower unemployment rate and poverty. So, what does that mean?
Malaysians will be able to survive independently without expecting welfare and handouts from the government!
Oh, wait, let’s not forget about technological advantage, if there are more foreign investors who are willing to bring their technology to Malaysia, it would be sweet because technology will correlate with productivity. More productivity, increased GDP !
Can you see the linkage from just increasing the oil price by RM0.20 ? The reduction of oil subsidy a very bold move by the PM, I would agree.
To the majority, it is a blood sucking policy because they don’t look at the bigger picture of reducing the subsidy and to increase revenue for the country.
Hope I’d explain how reducing this subsidy will save the nation and to strive further parallel with the government’s policy to transform Malaysia into a better nation.
Personally, I don’t believe in long term oil subsides and other handouts, I prefer the government to cut off these subsidies (oil) completely and use the money generated to provide more business grants, start-up grants, agriculture subsidies for start-up, technological start-up subsidies for the rakyat. This will create a more independent Malaysia and more successful Malaysians.
The current state and mentality of the rakyat is in a mess, I am pleased that the PM has taken step in order to transform the country and the nation.A country’s success is not only dependent on the government, it is much dependent on the rakyat too.
