Many people suffer great financial difficulties at the moment. the situation will get worse if the oil price continue to rise and government fails to take proper measures to overcome the problems.
It is very unfortunate to see a country with vast diversity of resources like Malaysia, struggled instead of benefiting from the rising price of oil. How can a country which is a net exporter of oil claim to be hurt by the current trend in oil price?
Rising oil price means rising income to the country. The marginal increase from oil revenue logically should be able to compensate any marginal increase in petrol subsidies. Unless the increase in oil revenue is not channelled efficiently or wasted on some other unproductive projects, then we can see why the country is badly hurt by the current trend in rising oil price.
Petrol subsidies are still considered vital for Malaysian economic growth. Many industries especially small and medium enterprises rely on oil subsidies as the subsidies reduce the operating costs. It is worrying if small companies just cannot stand the rising operating costs. Retrenchment can be a nightmare to the economy. This second round effect could worsen the poverty level. Consequently, crime rates will increase and this can further deteriorate the well-being of Malaysians.
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