KUALA LUMPUR, Jan 1 — The year 2014 has been dubbed as the year of price hikes as Malaysians prepare to tighten their belts for leaner days ahead.
Over the final few months of 2013, Putrajaya doled out numerous cost-cutting measures after pressure grew for it to rein in a chronic budget deficit, tracing as far back as the Asian Financial Crisis.
Here is a round-up of these measures. While some are still pending further review, few are expected to kick off from today.
Government cuts fuel subsidies with expected savings of RM3.3 billion annually, RON95 petrol and diesel goes up by 20 sen per litre to RM2.10 and RM2.00 respectively.
After excise tax for tobacco went up by 14 per cent from September 27, 2013, tobacco companies increased cigarettes’ prices by RM1.50-RM1.60 per pack.
Sugar subsidies slashed by 34 sen per kilogramme, government points out 2.6 million Malaysians aged 30 and above have diabetes.
4. Powering the economy and lighting up homes
Electricity tariff in Peninsula Malaysia up by 4.99 sen/kWh (14.89 per cent) and in Sabah and Labuan by 5 sen/kWh (16.9 per cent), expected to save Petronas RM4 billion in subsidies annually and contribute to greater dividends to the government.
5. Spare a thought for public transport
Ahead of the electricity tariff hike, Land Public Transport Commission (SPAD) to review Light Rail Transit (LRT), monorail, KTM fares upon request by rail operators.
6. Costly to drive taxis around and sit in them
SPAD, collecting feedback and studying new taxi fare mechanism, cites higher expenses in taxi maintenance and annual rise in cost of living at around 2.5 per cent.
Toll rates for nine highways could be reviewed by government after operators complained of losses due to inadequate traffic volume.
8. Giving your property its actual annual rental value
Local councils scaling down assessment rate, but bumping up assessment value of Kuala Lumpur and Johor Baru residential properties, last hike for Kuala Lumpur 21 years ago. Assessment rate goes up for Johor Baru’s commercial and industrial properties by 0.01 per cent and 0.02 per cent, last hike in 1995.
9. Sending your children to school
Federation of Malaysian School Bus Operators Association pushes for 40 per cent hike in fares in 2014, SPAD tells operators to wait until it decides on new fare mechanism. (Last review in 2009)
10. Be thankful there’s no item listed under 10
Allow self a duty-free indulgence with an intake of haze-free air that smells heavily of rain. (There’s always the six per cent Goods and Services Tax (GST) to look out for in April 2015, but does this fall under price increases?).
