DECEMBER 14 — Following the announcement of increased toll rates for 18 highways in the country on October 15, public transportation costs will also be increased accordingly, including express buses, taxis, LRT, Komuter and ERL.
Meanwhile, the reduction in electricity tariff rebates means the public may have to pay more for utility next year. It is also learned that the tolls for North-South Expressway will very likely go up as well in 2016.
Ordinary citizens are the ones to take the brunt of such increases as transportation operators will invariably raise their charges owing to higher operation cost.
As if that is not enough, the government will also abolish the subsidies for ST15 rice and cooking oil, and this is bound to send more goods prices higher.
Lest we forget, the 6% GST implemented from April this year has already effectuated a big round of price hikes. and the latest price hikes will make life much more difficult for many.
Umno Youth chairman Khairy Jamaluddin has voiced up against the rising prices. As Khairy has said, the rising goods prices have significantly increased the burden of the general public, especially towards the end of the year when parents are preparing for the things their children may need in the coming academic year, including school uniform, shoes, stationery, etc. Thanks to the rising cost and the consequent price increases, the expenses of parents may be heavier this year.
The reduction in electricity rebates has been attributed to the depreciating ringgit that has eaten into the energy cost savings of power producers. Although only households using more than 300kWh a month will be affected, given the current lifestyle and usage pattern, it is very difficult for a family not to use more than 300kWh a month.
Even though the percentage of rebate reduction is not that drastic, the public are doubtful of the rationale for such decrease. What about the subsidies the government has previously saved? Moreover, the government must also declare the price structure of fuels such as natural gas and coal, and make sure everything is transparent.
From what we have seen above, indeed the depreciating ringgit, rising production cost and GST implementation have been the contributing factors to the heavier financial burden of the people. Unfortunately many are aware that the rates of their annual pay rises will never come close to the inflation rate. In other words, there is no way for the government not to adjust public utility charges upward or go on with its subsidy rationalization program. Sharp increase in goods prices is a natural development and the public must come to terms with the cruel reality that they have to be mentally prepared for a new wave of price hikes.
While tackling the current economic difficulty, perhaps the government should also map out strategies to help the public sail through the current harship. Offering monetary assistance alone can never be a long-term solution. The government must come up with a more effective mechanism to revitalize the economy so that the people’s incomes can also increase proportionately.
As for the ordinary people, they must fortify further their financial planning and productivity in tandem with the changing economic conditions.
* This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail Online.
