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?