Saturday, December 04, 2010

Price hike - it won't stop now!

Prices of several essential items gone up today again. The DAP has always maintained a stand that distortion of market via subsidy system should not continue and the government should put in place a proper and comprehensive social safety net to cover the needs of the poor in embracing higher living expenses.

Please do not misunderstand this as a support for the federal government to increase prices of essential items. The government can take away subsidies provided that there are sufficient alternatives. For example, the people will not grumble too much if there is a proper public transportation system in place even if the government increase petrol prices to more than RM3 per litre!

The question is of whether the government has thought through it enough or not before any decision made.

My immediate response to the "4 in 1" price hike is very simple, that it is not going to stop here. It will continue to happen. It means prices of essential items will be increased, not at one shot but bit by bit. Maybe there will be another round of price hike after every two months.

By end of 2011, the price of essential items will reach the desired level (of the federal government, of course!) without any need for Barisan Nasional to explain to the people all the wastages incurred due to low level of competency, accountability and transparency of them running the federal government.

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