Malaysian inflation hits 26-year high

Malaysia's annual inflation rate jumped to a 26-year high of 7.7 percent in June due to a substantial rise in fuel prices, according to official data released Wednesday.

Nor Mohamed Yakcop, second finance minister, had said that a 41-percent hike in subsidised fuel prices last month was set to boost inflation in June and July.

But he insisted that inflation for 2008 would be contained at five percent.

The figure came as something of a surprise, as economists had predicted June inflation of 6.6 percent.

Economists now expect the central bank to raise interest rates by 25 basis points at the end of July to counter the jump in inflation.

Malaysia's key interest rate now stands at 3.50 percent.

Transport prices rose 19.6 percent in June as compared with a year ago, while food and non-alcoholic beverages rose 10 percent.

In the first half of the year, consumer prices rose 3.7 percent from the same period the year before.

Prime Minister Abdullah Ahmad Badawi last month announced a deeply unpopular 41 percent increase in petrol prices to cut the country's subsidies bill, which would have reached 17 billion dollars this year.

Don't Be Sad!

I bought and read the book entitled 'Don't be sad' two years ago. A very inspiring book that can help me ward off sadness and have a positive outlook of my life. Still reading it and like to recommend this book to be read by all of you too. Just thinking it is worth sharing a nice video clip with a good reminder/lesson for all of us especially those who have gone through tough time in life. Don't be sad!.

Fear?! Just do it!

After two years of studying in Phd, one of my friends in UIA presented her Phd proposal. Few days before her presentation day, I went to her house in Shah Alam since I was there for an appointment with an officer from human resource department. She looks really pale that time (may be she didn’t get enough sleep) and her mind seems wandering somewhere. She didn’t do much talking except saying many times that she was too anxious to present her proposal. Even though, I haven’t gone through the process (proposal presentation) but I think I do understand her feeling and her fear.

Giving presentation for PhD proposal (defending the proposal) could be an "earthquake"! I can imagine that all eyes are focusing on you and on what you're going to say. Those eyes belong to Professors and the so called experts in the related field. The problem is that they're not simply watching and listening. There are "bullets" waiting for you at the end of your presentation and you must have a good shield to protect yourself. However, taking it positively, whether it's painful or not, those bullets are good for you to move on.

In the morning before she presented her proposal I got her sms to me telling me how fear she was and asked me to pray for her. I told her the the fear will never go away. It will always be there. The only way to defeat the fear is to go out and do it, presenting your proposal. (It is easy to advice others than to be done on our own. Ha3x)

I got her call at 8.00 p.m on that day. From the excitement tone of her voice I knew she did well on her proposal presentation. She was not asked with too many questions on her proposal and the presentation went smoothly than she ever imagined (I told you, you can go through your fear and handle whatever comes your way). I really remembered that she said she felt like wanted to hug everybody. Well….. you don’t need to hug me now or belanja me makan, but please pray for me that can go through all the Phd process smoothly like you too. Amin…

Middle & Lower Income Group

A friend of mine asked why on my previous entry (article written by Ros Anita) I didn’t give any comment or my personal view on the article. Well… the reaction of the rakyat to the fuel price hike has been interesting. I think I should listen to what others have to say or to express their opinions. It doesn’t mean that I am afraid to express mine but sometimes I'm getting tired of the fuel price hike story. At the moment everybody are still talking about issue of the recent fuel price hike. Everywhere, rakyat are still talking about this issue and give their comment or show their disappointment.

Looking at the current economic situation, I believe it is unfair to put 100% blame on the government on the drastic reduction of the subsidy given to the petrol. (from a textbook point of view, too much subsidy will lead to inefficient outcome and alter consumer behaviour adversely).The price hike maybe is inevitable, and it was only a matter of time before the government had too (I know this is really unpopular statement). Reality bites. At the same time, the rakyat also should not be blamed for their disappointment of the fuel price hike because the measure was implemented in sudden. Anyhow, I don’t think street demonstration is a solution to the problem. Infact, it creates more problems.

However, regarding to the article I should agree with Ros Anita she wrote the rich become richer, the poor become poorer’ (I think the book by Robert Kiyosaki- Poor Dad and Rich Dad is advisable to be read, how the money matters give effect to the poor and the rich).

This is merely to examine the fuel price hike effect on my life. As a government servant, I think could consider myself belong to a middle income group. I spent close to 15% of my monthly salary just for transportation charges (fuel, parking, tolls and car maintenance). With the current hike, it's likely to break 20%. I go back to my hometown once or twice a month to visit my father. Filling up a full tank now cost of my car cost me around RM100. I still remember that when I started using my car, a full tank was only around RM70 and now it's up by almost 40%. Travelling back and forth from father's house need almost RM200 (including toll). And with the petrol price increased now, I'm sure subsequently price of other things will increase too ( A domino effect). Even the price of a can of Nescafe that was like a tonic for me to avoid feeling sleepy while driving back to my hometown cost me RM2.00 at R&R. Last few months it cost only RM1.60. I believe I still can survive the hike, but what about the lower income group? Can they survive in this challenging time? Their financial situation will be badly affected. If I change my life style, should I visit my father less than I always did?