Posted by KC Loh > 2013-02-25 14:14 | Report Abuse

to say malaysia is the only Asian country that provides subsidy for consumer goods is wrong!

http://www.bangkokpost.com/business/economics/227910/thailand-urged-to-cut-subsidies

http://www.amcham.or.id/nf/features/3191-soybean-group-pushes-subsidy

Posted by reyes430 > 2013-02-25 14:30 | Report Abuse

Hi KC, what do you think about the removal of subsidies completely? Could it be happen?

Posted by KC Loh > 2013-02-25 14:39 | Report Abuse

completely i think for the moment is impossible. Hyperinflation will set in immediately! Even US' fiscal cliff is a no go! Recession will bite hard.

Posted by Hustle > 2013-02-25 14:42 | Report Abuse

Just refer to the Hokkian Mee Price nearby your house and you will easily notice whether it is inflation or not.

Posted by KC Loh > 2013-02-25 14:49 | Report Abuse

but there is a fine line between inflation calculation and greed.

sugar price up 20 sens, mamak teh tarik from 1.50 to 1.90! inflation or greed/both?

Posted by reyes430 > 2013-02-25 15:00 | Report Abuse

Thanks KC for your explanation. But the reduction of subsidies gradually will make more people suffer enough especially for those fresh grad who just stepped into the society and try to live independently. The income/salary for fresh grad is way too low.

Posted by iafx > 2013-02-25 15:06 | Report Abuse

boleh land #1 problem is corruption, any initiative incl this one is greatly impacted by the inability of fighting corruption; as it often "eat" from top to bottom. at such, it is often difficult to justify whether which subsidies r truly bad, while majority with low salaries but million & million of bunglow still sell like no body business

morale of the story, keep yr wallet tied!

Posted by Shane My > 2013-02-25 16:20 | Report Abuse

Kc, apologies..i will amend that point. thanks for heads up.

Posted by Shane My > 2013-02-25 17:02 | Report Abuse

A point to ponder for everyone. Based on the calculation, the actual inflation rate for Malaysia is rather high in comparison to the neighboring countries. There's two possibilities here. One, the calculation is inaccurate. The other, the actual price of consumer products subsidized is not as high as the what the data indicates.

Posted by reyes430 > 2013-02-26 10:56 | Report Abuse

Thanks Shane for your blog which it really broaden my knowledge, could you further explain on your assumptions of why "the actual price of consumer products subsidized is not as high as the what the data indicates"